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24 | TH E M R EP O RT COVER STORY on those differences. "Inclusion not only expands our horizons but gives us a competitive edge in our marketplace as well," she said. Thus, to truly allow the business potential of a diverse workforce it is important to ensure that employees remain en- gaged at various levels after being recruited. According to a research by Harvard University, employees with inclusive managers were 1.3 times more likely to feel that their innovative potential was unlocked. And that's what Flagstar Bank aims to do through its Employee Resource Groups (ERGs). Flagstar has seven different ERGs that include African- Americans, women, LGBTQ , Asian-Indians, millennials, veterans, and a group that focuses on disabilities. The bank is plan- ning to start a similar group for Hispanic-Latinos. The business benefits of these groups are already apparent, according to Mbiya. "We par- ticipated in 'The Ultimate LGBT Wedding and Anniversary Expo' in Detroit in March, where mem- bers from our LGBTQ Employee Resource Group interacted with attendees," she said. "Besides being an opportunity for networking, the event also led to business opportunities. There were 600 people at the expo and through this event, our group got 75 leads." According to Bechtel, TD Bank's Diversity Leadership team focuses on five areas, with a subcommit- tee to support each area. These subcommittees provide opportuni- ties for awareness, learning, and personal development throughout the year. "The events include, ex- panding opportunities for women in leadership; expanding leadership opportunities for members of mi- nority groups, people with diverse abilities, LGBTA, and serving diverse communities," he shared. Employee groups have been driving business at Wells Fargo since 2004, with more than 63,000 team members participating in one of the 10 Team Member Networks. "Through our Diverse Leaders Program, team member participants experience a unique opportunity to focus on leader- ship and professional development from a culturally relevant, sensi- tive, and segment-specific perspec- tive," said Blackwell. The three-day program enables team members to expand their internal networks and build cross-organizational relation- ships. It was expanded in 2017 to include Veterans and People with Diverse Abilities in addition to Asian and Pacific Islander, Black/ African American, Latino, and Lesbian/Gay/Bisexual/Transgender (LGBTQ) leaders. At Texas Capital Bank, the D&I team introduced a new program called called "Better Together" in July 2017 that recognizes positive behaviors related to D&I. The program aims to heighten aware- ness and collaboration between employees, which in the bargain, according to Arnold, creates a more unified workforce and increased efficiencies. So far 200 employees have completed this program. "'Better Together' challenges our employees to deepen their under- standing and appreciation for col- leagues who approach their work and decision making differently based on various personality traits or styles," shared Arnold. BankUnited's training programs also include improving the D&I quotient for managers, who are often at the front lines of ensuring an inclusive environment. "Every manager completes a course that discusses interviewing practices that support diversity," said Ray Barbone EVP, Mortgage Services, BankUnited. D&I Beyond Employees I s it enough to have a robust internal D&I framework for employees alone? As they look at new ways of reaching out to an expanded demographic of homebuyers, lenders are also looking at supplier initiatives that holistically combine D&I with business strategy. For example, Wells Fargo has added $300 million incremental diverse supply spend over the past three years and is investing over $1 million annually in programs designed to help diverse business grow and scale. By 2020, the bank plans to spend 15 percent of its procurement dollars with diverse suppliers and has established aggressive spending goals with diverse suppliers. "Each one of the CEO's direct reports is account- able for delivering on the supplier diversity goals," said Blackwell. Flagstar Bank is also tak- ing steps to encourage supplier diversity. The bank is a member of the Michigan Minority Supplier Diversity Council and participates in conferences that have a diverse set of vendors. "The D&I team also tracks and reviews the bank's progress in achieving supplier diversity," said Mbiya. At the end of the day though, D&I must make business sense for lenders to reach out to the new homebuyer profile—the minorities, women, millennials, LGBT and more. And all programs, whether recruiting a diverse workforce, training the existing workforce, or ensuring diversity among vendors are geared towards achieving the ultimate aim of doing business with a changing homebuyer or owner profile. A New Demographic G reater diversity within the housing industry doesn't make cultural sense, it makes business sense as well," said Kirk Willison, SVP, Government, and Industry Relations at Altisource. "Buying a home is usually the most expensive purchase an individual or family makes. Hav- ing a workforce that speaks the buyer's language or shares their life experiences can help build trust and confidence in borrowers, increasing the opportunities for homeownership." Barbone agreed: "It is impera- tive that those who work in the mortgage industry reflect the com- munities we serve to be more sen- sitive to the needs of those in the community. That sensitivity will, in return, breed more trust in the housing and mortgage markets." Recognizing the need for trust, and also to get an edge in its lend- ing operations, Wells Fargo, in 2017 committed to lend $60 billion for African-American home purchases over 10 years while increasing the diversity of its sales team, "especially African-American home mortgage consultants," said Blackwell. The bank also dedicated $15 million for initiatives focused on homebuyer education and counseling. TD Bank is also launching a strategic initiative to grow its Community Mortgage Loan Officer team to serve the fast- growing population of aspiring homeowners better. According to Bechtel, the bank plans to add new products, programs, and support that is customized for the new homebuyer demographic. Looking at the future, Thomas believes that firms that are in the homeownership business— be it real estate agents, lenders, servicers, GSEs, or investors—will be impacted by diversity. "We are preparing for that future now, in a proactive way. We are also partnering with organiza- tions such as the AMDC and the Federal Reserve Bank of Chicago's Financial Services Pipeline Initiative, to explore and imple- ment best practices in D&I, espe- cially in the financial services and mortgage industries," he said. RADHIK A OJHA, Online Editor at the Five Star Institute, is a graduate of the University of Pune, India, where she received her B.A. in Commerce with a concentration in Accounting and Marketing and an M.A. in Mass Communication. Upon completion of her master's degree, Ojha worked at a national English daily publication in India (The Indian Express) where she was a staff writer in the cultural and arts features section. Ojha also worked as Principal Correspondent at HT Media Ltd and at Honeywell as an executive in corporate communications. She and her husband currently reside in Dallas, Texas. You can contact her at Radhika. Ojha@theMReport.com. "