LGBTQ+ Friendly Banking: How to Find a Comprehensive Bank to Support the LGBTQ+ Community

When Billy Simmons needed to change her name with a bank card, she visited the financial institution to make a request. For some, it would have been just an inconvenience, but for Simmons, it effectively meant distancing herself as a trans woman to the bank employees.

Even after securing a new card with her name, Simmons was unable to update her username and access her digital account. “Every time you log into a banking platform, you use the name you used before moving,” says Simmons. These experiences highlight why LGBTQ+-friendly banking services are essential for an estimated 20 million LGBTQ+ adults in the US

Friendly features to find LGBTQ+

When assessing the LGBTQ+ familiarity of a financial institution, here are some features and policies to consider:

1. Non-discrimination policy: Look for institutions that have explicit, advanced policies that prohibit discrimination based on sexual orientation and gender identity. These policies must clearly state and encompass all services, including lending, account opening, employment and more.

2. Selected Name Options: The ability to use the name you choose on your debit or credit card without the need for legal name changes is important for transgender and genderless individuals.

3. Employee Resource Group: These groups provide a platform where LGBTQ+ employees can connect, share their experiences and contribute to creating a more relevant environment for both employees and customers.

4. Digital Platform Inclusiveness: Modern banking systems must accommodate name changes across all digital platforms. This should avoid situations where customers must use their previous names to access their account.

5. Support for LGBTQ+ community organizations and events: LGBTQ+-friendly banks actively participate in and sponsor LGBTQ+ events and initiatives, such as donating to related causes, raising funds for research on LGBTQ+ health disparities, or sponsoring community workshops.

6. Cultural Ability Training: Staff training that helps employees understand their own LGBTQ+ financial needs, from cost transitions to family property planning considerations of selected family members.

LGBTQ+ Friendly Banks and Credit Unions

If you want to open an account with a financial institution that supports LGBTQ+ people and reflects it in its capabilities and policies, there are a few options to consider.

bank

Fusion Bank: Known for its commitment to social and environmental issues, the fusion bank has a clear policy to support LGBTQ+ customers and employees. The bank has a Pride employee resource group, signing LGBTQ-related causes, including gender-maintaining surgery and hormone therapy in staff insurance, including Equality Act.

BMO Harris: In 2021, BMO Harris launched a Zero Barrier inclusion program with the goal of at least 3% of the workforce being identified as LGBTQ+ individuals by 2025. It was also the first bank to offer debit cards that allow customers to use their chosen name without changing their legal name.

Capital One Bank: Capital One sponsors a number of events and organizations that support the LGBTQ+ community. The bank has donated more than $150,000 for PRIDE month to the Trevor Project, a nonprofit focused on suicide prevention for LGBTQ+ people. As of 2021, 3.7% of employees were identified as LGBTQ+.

jpmorgan chain:Chase has established comprehensive LGBTQ+ support through multiple initiatives. The bank maintains a Pride Business Resource Group throughout its business, providing the benefits of its domestic partners. Chase is recognized by the Human Rights Campaign’s Corporate Equality Index and actively sponsors LGBTQ+ community events. The bank also offers employee training on LGBTQ+ inclusion and has a clear non-discrimination policy covering sexual orientation and gender identity.

Citibank:Citi recognized and provided benefits to same-sex partners before they were legally recognized. In 2021, Citi signed a business statement against anti-LGBTQ+ state laws proposed by the Human Rights Campaign. They also offer easy ways to allow customers to change their debit or credit card names to their preferred names.

Credit Union

Elements Federal Credit Union: Based in West Virginia, Element FCU, with national online banking access, works with members to print debit and credit cards in the name of your choice. Once a new account is opened, the credit union will donate $50 to Rainbow Pride, a nonprofit organization supporting the LGBTQ+ community in West Virginia. An additional $0.05 will be donated for each debit card swipe.

Supervia Credit Union: Superbia is specially designed for LGBTQ+ individuals. Its mission is to “provide money management services that fully consider the needs of the non-discrimination banks, life insurance and the LGBTQ community.” Superbia manages a charity called the Superbia Foundation, which not only offers standard banking products, but also funds LGBTQ+ research and programs. 10% of the credit union’s revenues are donated directly to the foundation.

Why is LGBTQ-friendly banks important?

In a 2018 survey by Experian, 62% of LGBTQ+ respondents said they experienced economic issues due to sexuality or gender identity. While progress has been made in terms of LGBTQ+ rights and acceptance, LGBTQ+ individuals still have their own unique needs and concerns.

Discrimination in financial services: A 2019 survey published by the National Academy of Sciences analyzed large-scale mortgage lending data and found that same-sex couples were about 73% more likely to be denied a mortgage application than heterosexual couples. LGBTQ+ individuals may have limited access to loans and mortgages due to discrimination or bias.

Professional financial needs: LGBTQ+ individuals may need specialized financial products and resources, such as adoption funding for same-sex couples, support for gender-affirming healthcare costs, estate planning for selected family structures, and financial support during the transition period.

Cultural competency requirements: There is a level of cultural understanding required to address concerns that are different from the general population. Challenges related to legal name changes, transition costs, or property planning for selected families require training and institutional awareness of staff.

Economic impact: The LGBTQ+ community represents a significant economic force with an estimated total purchasing power of around $1 trillion. Financial institutions that cannot serve this market can harm community members, while also missing a significant business opportunity.

Conclusion

For the LGBTQ+ community, access to non-discriminatory and supportive banking services is essential to financial stability, security, and the ability to achieve life goals. By choosing an LGBTQ+ friendly bank or credit union, individuals can help to tailor their financial options to their own values ​​and ensure that all people are treated equally in the financial services industry.

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