Why Culture Matters in Finance

The role of culture in financial institutions has quickly moved up on the agenda of financial regulators globally. In September, the Monetary Authority of Singapore, which is one of the leading financial regulators in the world, published two papers that reinforce the importance of organizational culture. The first paper focuses on nine outcomes the authority believes all financial institutions should work toward, while the second paper outlines five outcomes financial institutions should achieve to strengthen accountability and promote ethical behaviour.

Beyond the financial services industry, culture is being scrutinized and revolutionized more than ever before. From entertainment to the technology industry, companies are reorienting around new workplace standards in the wake of movements such as #MeToo and due to the trust issues plaguing tech behemoths, such as Google and Facebook. To a certain extent, diversity, equity and inclusion initiatives to bring new people and perspectives to company culture will help ensure the right culture develops and stays in place.

But what exactly is culture, and why is it important in financial services and other industries?

On the first question, William Dudley, former chief executive of the Federal Reserve Bank of New York, put it best when he described culture as…