In 2018, the Canadian Human Rights Commission’s horizontal audit exposed a challenging reality about Indigenous employment in Canada’s banking and financial sector. While 62.9% of employers reported incorporating employment equity goals in their succession planning, only 25.7% identified Indigenous men for key positions, and only 14.3% did the same for Indigenous women. These figures underscore the systemic barriers faced by talent from Indigenous communities, particularly women. However, recognizing the problem is the first step toward creating meaningful change.
A Growing Population, But Limited Representation
Indigenous Peoples are the fastest-growing and youngest population in Canada, with more than 1.8 million people identifying as Indigenous, according to the 2021 Census. Despite this, their representation in the corporate sector has been limited.
In 2023, Indigenous Peoples held just 0.9% of board seats on TSX-listed companies, and Indigenous women occupied an even smaller fraction of corporate director positions at 0.4% in 2024. This underrepresentation in leadership highlights the barriers Indigenous women face in climbing the corporate ladder. Yet, this rapidly growing and youthful demographic represents a wealth of untapped potential that the financial sector is beginning to recognize and harness.
Progress and Opportunities in Indigenous Representation & Wage Gaps in Canada’s Finance Sector
The Canadian banking and financial services industry employed 1.5% Indigenous Peoples in 2021, a figure that slightly declined to 1.4% in 2022. Within senior management, Indigenous representation is a modest 0.9%. However, there are encouraging signs of progress. Major financial institutions are increasingly committed to inclusive hiring practices and career development programs tailored for Indigenous employees. Canadian banks such as CIBC, RBC & Scotiabank and have developed plans to tailor, facilitate and make indigenous banking more accessible.
Efforts to close the wage gap are also underway. As of 2022, Indigenous Peoples earned 90 cents for every dollar earned by their non-Indigenous counterparts. For Indigenous women, the disparity was even more significant. They earned 87 cents on the dollar compared to non-Indigenous women and 72 cents compared to men. This 28.3% wage gap is a focal point for advocacy and policy reforms aimed at ensuring equitable pay.
Bridging The Gap
Beyond talent, we must also address the fact that geographic isolation and accessibility remain challenges. The lack of branches and ATMs near many Indigenous communities exacerbates financial inclusion issues. A 2021 Bank of Canada report highlighted that the nearest financial institution branch is about 24 km from a band office, with the nearest ATM over 26 km away. Despite these challenges, financial institutions are actively working to bridge this gap through mobile banking solutions, partnerships with Indigenous communities, and innovative outreach programs.
The Canadian Bankers Association highlights significant strides made in serving and employing Indigenous populations, pointing to dedicated employment programs, educational initiatives, and partnerships with Indigenous organizations. These efforts are beginning to yield positive outcomes. For instance, TD Bank’s Indigenous Banking Group has seen a marked increase in the number of Indigenous women in leadership roles, and BMO’s Indigenous Advisory Council has been instrumental in shaping inclusive policies.
Investing in Indigenous Populations, Especially Indigenous Women
The future of Canada’s financial sector depends on its ability to embrace diversity fully and equitably. Indigenous women have waited long enough. Fortunately, the tide is turning. With concerted effort and genuine commitment, the financial sector can transform these challenges into opportunities, ensuring a brighter, more inclusive future for all. Indigenous women, with their resilience and talent, are poised to become key leaders in the financial sector, driving innovation and growth.
While challenges remain, the progress made so far offers hope and a path forward. The financial sector is on a journey toward greater inclusion, and Indigenous women are at the forefront, unstoppable and rising.
