Eight in ten (82%) had experienced unwelcome comments based on their background.

The report, the Race to Equality in UK Financial Services by Reboot and Coleman Parkes, found that a quarter (25%) said that racial jokes were still 'tolerated' where they worked.

Half (47%) who had faced discrimination said they had raised issues with their HR team, but 75% felt HR was not 'very effective' at dealing with these issues.

Half (52%) who had complained about discrimination said they had come under greater scrutiny by managers and some colleagues had treated them differently for speaking up (48%).

Almost half (49%) who had experienced discrimination in the past year said they had to take time off work, with 56% having to seek counselling to recover from negativity in the workplace.

Ethnic minority people also said that their careers were not progressing at the same rate as their peers.

Four in ten (44%) said their career progression had been slower than non-ethnic minority colleagues, with one in three (32%) saying they do not have the same opportunities as white colleagues.

Lack of senior representation was also preventing ethnic minorities progressing at work and prompting them to switch jobs.

Four in ten (40%) ethnic minorities said that they were likely to search for a new role in the next six to 12 months, with one in ten (9%) blaming their organisation’s discriminatory culture for a potential move.

However, the report suggested that there has been some progress improving diversity in financial services over the last year. Eight out of 10 (81%) felt that the company they worked for was actively promoting an inclusive and diverse working culture.

Seven in 10 (69%) said their organisation was making efforts to be more diverse when recruiting, but half said that leaders prioritised tackling gender issues (58%) as they were still uncomfortable tackling race issues.

Noreen Biddle Shah, founder of Reboot, said: “This year’s results are concerning – from the amount of discrimination ethnic minorities are experiencing, the lack of representation in senior roles, to a continued discomfort to speak about race in the workplace. We need to understand the issues raised in the latest report so that we can work together to drive positive change and create more inclusive working environments for people working within the financial services industry.  

“It is fair to say most individuals believe in a fair and diverse workforce, but the systems in which they operate are flawed and we need to find a way to make real changes and measure the impact. We also need allies and leaders to speak up to help normalise what is still sadly so taboo.”

• Senior ethnic minority executive network Reboot and research agency Coleman Parkes surveyed 800 people working in financial services roles with a minimum of 10 years of experience in the industry.