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- Research has found that LGBTQ people often experience prejudice or discrimination in financial services.
- Some banks have policies or initiatives that reflect LGBTQ needs or support LGBTQ rights.
- We list banks and credit unions with LGBTQ friendly service.
While the banking industry is shifting to better serve customer needs, LGBTQ customers still often face systemic barriers to banking.
If you’re looking for a financial institution that is more aligned with your values and supports LGBTQ people, here’s how to identify a bank that truly supports LGBTQ people.
Why is LGBTQ-friendly banking important?
from research National Financial Education Foundation It was found that two in five LGBTQ adults feel unable to access financial services and products because of barriers or discrimination in the way these services are designed. In addition, trans respondents said they were more than twice as likely to experience discrimination and prejudice in the financial system as LGBTQ cisgender men and women.
One area where LGBTQ couples experience discrimination is mortgage lending.According to 2019 published in Proceedings of the National Academy of Sciencessame-sex couples were 73.1% more likely to be denied a mortgage when compared to opposite-sex couples.
The process of changing your debit or credit card name to reflect the name you choose can also be time-consuming and complicated. Only a few financial institutions allow you to customize your debit or credit card, no matter what your legal identification is.
LGBTQ-friendly banking is important because it recognizes the banking challenges faced by LGBTQ people and provides solutions to those woes through products or services.
“It’s about making sure anyone in the community has a place to go, knowing they’re accepted, cared for, heard and treated equally,” explains CFP and founder Scott Stanley Faros Wealth.
How can you tell if a bank is truly LGBTQ-friendly?
When you’re looking for LGBTQ-friendly financial institutions, Yvonne Bradshaw Financial Advisors and Coachesit is recommended to review the bank’s mission statement and practices.
“You want to see who they are supporting, what is in their banking policy. Are they inclusive? Is the policy just extending to their workers? Or is this going a step further? Are they progressively looking to help and support the LGBTQ community ?” Bradshaw suggested.
Stanley also said that you can look at the corporate governance committees of financial institutions and study their online presence. If the leaders of the financial institution have a history of bias, you might consider other banking options.
Financial institutions with LGBTQ-friendly banking
Some financial institutions have products and services that recognize banking barriers and advocate for LGBTQ rights. Below is a brief overview of some financial institutions that offer LGBTQ-friendly banking.
- Consolidated Bank: Consolidated Bank is a socially responsible bank with branches in the Washington, D.C. and New York City area. It also offers online-only checking and savings accounts if you don’t live in those places. Merger Bank shows support for LGBTQ rights by joining amicus brief against LGBTQ+ discrimination. It also allows transgender people living in New York to open a bank account in a name of their choice through IDNYC.
- BMO Harris: If you have a BMO Harris credit, debit or ATM card, you can display the name of your choice if it is different from your legal name.
- Citi: In 2020, Citi announced that it will begin offering True Name. You can get any Citi credit card under the name of your choice.
- Daylight: Daylight is a mobile banking platform dedicated to serving and supporting LGBTQ+ people. Daylight lets you customize your debit card with a name of your choice. If you plan to have gender-affirming surgery in the future, Daylight Account also has a guided targeting feature, which has a virtual assistant to help you learn more about the process.
- Republic Bank: Republic Bank is a brick-and-mortar financial institution with branches in Kentucky, Indiana, Tennessee, Florida and Ohio. Republic Bank offers real name functionality for its debit cards.
bottom line
Determining the right LGBTQ-friendly financial institution for you may require methodical research. To determine if a bank aligns with your values, you can check to see if it has LGBTQ+ social initiatives or offers products that address banking challenges faced by LGBTQ people. You can also view our list of agencies offering LGBTQ friendly services as a resource.
