LGBTQ+ individuals can face unique obstacles when it comes to financial decisions.
In a 2022 study, U.S. Bank found that members of the LGBTQ+ community find it more difficult to secure a mortgage, access funds for medical care and spent significantly more to build a family compared to their non-LGBTQ+ counterparts.
“I think banking in general can be a stiff environment, so coming into that environment when you already have feelings you might be treated differently because you are a member of a community that is routinely underserved and is misunderstood can be daunting,” says Jeff Dry, regional director for branch operations at Addition Financial.
To meet the needs of LGBTQ+ individuals, couples and families, banks and credit unions have started to be louder and prouder with their community support and services in the last few years. They hope to attract more LGBTQ+ customers and make the ones they already have feel safe and proud to be members.
When you are a member of a marginalized community, it is hard not to factor the possibility of being discriminated against into every decision you make, and financial choices are no different. In a recent survey conducted by Experian, more than half (59%) of respondents said they experienced discrimination because of their status as members of the LGBTQ+ community. That number increases to 64% for participants who identify as Black or African American.
“Being an LGBTQ-friendly organization isn’t just saying you are inclusive, you have to show it,” says Dry. “It’s creating an environment that allows anyone who walks through those doors to embrace who they are.”
So how do you know if a bank or credit union you are interested in is LGBTQ+-friendly?
“You’ll need to start by doing some research,” says Dartavious Garland, Additional Financial’s Fern Creek branch manager. “Look at the company’s core values, check out their social media and see how integrated and inclusive the institution is as a whole. Are they representative of the community you are a part of?”
A good starting off point is with the Human Rights Campaign’s Corporate Equality Index. The index, which launched in 2002, has become a roadmap and benchmarking tool for LGBTQ+ equality in the workplace. The HRC CEI looks at workforce protections, inclusive benefits, supporting an inclusive culture and more to find LGBTQ+-friendly businesses. Of the more than 800 businesses to earn a score of 100% last year, several financial institutions made the cut including Amalgamated Bank, Bank of America, Seacoast National Bank, TD Bank and many more.
“To be able to serve a diverse community of customers, as an organization you need to be pretty diverse yourself,” Dry says. “And as a whole we are a very diverse company. I came out about eight years ago and under a different CEO I’m not sure I would want to be out but under this CEO and with this company, I have been given the space to feel comfortable and free to be myself.”
When deciding if a financial institution is right for you, take some time to look into whether the company has a diversity, equity and inclusion program or employee resource groups. A company having one or both of these can tell you a lot about how that company feels towards the LGBTQ+ community.
Also, are those institutions you’re putting your money into putting their money into your community? LGBTQ+ publications, like Watermark, are excellent places to look and see if the bank or credit union you are interested in is reaching out to you for your business. Check to see if they are advertising to the community or check out directory listings with LGBTQ+ organizations to see who they have listed.
Banks and credit unions who are looking to reach the community will develop partnerships with local LGBTQ+ organizations. Several financial institutions based right here in Central Florida and Tampa Bay have built strong ties with organizations like the LGBT+ Center Orlando.
“Being a part of the community, I knew some of the leaders at The Center so I started reaching out,” says Dry on Addition Financial’s partnership with The Center. “We started working with George [Wallace, CEO of The Center Orlando] and began by asking what can we offer and how can we help.”
That partnership has led to Addition Financial sponsoring events, walking in the Pride parade and offering financial wellness seminars through The Center.
“It was just important for us to be involved in the community and give them a space to do their banking, ask their questions and not be judged,” Dry says.
Another local financial institution that has embraced partnerships with the LGBTQ+ community is Climate First Bank. Climate First is the nation’s first climate-focused bank and was founded on “principles of tackling climate change and doing the right thing by our planet.”
“We are all about becoming the most impactful bank in terms of tackling the climate crisis,” says Climate First’s VP Director of Marketing Rachel Kent. “Our lending is focused on youth, education, affordable housing, renewable energy, making things like solar very accessible and affordable. Just trying to do the right thing by our planet.”
That fight for social justice carries over to the LGBTQ+ community as well.
“Everybody has a right to identify as and to be the person that they feel they are and that should be true in every aspect of their lives,” Kent says. “Whether they are going to the bank, whether they are going into a supermarket or whatever they chose to do every day.”
In 2022, First Climate launched Pride Banking, a checking account focused on raising awareness and funds for an LGBTQ+ organization. It began with a six-month partnership with KindRED Pride Foundation and then at the start of 2023, First Climate partnered with The Center Orlando.
“The checking account is something we offer to anyone who wants to open a new account,” Kent says. “We donate $100 to an LGBTQ+ charity or organization for every account that is open. We work with different charities, at the moment we are working with The Center and we worked with KindRED Pride before that. The idea is to spread the opportunity to as many LGBTQ+ charities as possible.”
Climate First’s Pride Banking accounts are an interest-bearing account with $0 monthly fees, no minimum account balance and come with free Pride-themed checks.
Something that is of great importance to many LGBTQ+ individuals, especially for those who identify as transgender, nonbinary or gender nonconforming, is knowing that their names and pronouns will be respected and honored at their financial institution.
“Banking with your preferred name and pronouns is not only important, it’s a basic human right,” says Kent. “We do a lot of diversity and inclusion training at Climate First to make sure our people are educated and well informed. We have a specific pronoun training when you join the company to learn the correct ways to address people and be respectful of their pronouns and preferred name.”
Addition Financial has also incorporated training specifically focused on respecting their LGBTQ+ members, including utilizing the right name and pronouns of every person and knowing how to properly and respectfully address same-sex couples.
“We tailor each member’s account so that when they come in whoever is helping them will be able to pick up from that last conversation to ensure that they are communicating with that individual accordingly,” Garland says. “It is about honoring and respecting each member, and we take that very seriously.”
Another quick and easy way to know if your bank or credit union is LGBTQ+-friendly is to look for visual markers that the company has chosen to display to let you know you are in a safe space. Look for Pride flags being displayed or employees wearing pronoun pins. Also if your local police or sheriff department has a Safe Place Initiative, look for those rainbow-colored decals on the business’ doors and/or windows.
“Feeling safe and being able to be yourself and not have to hide who you are, [same-sex couples] being able to say my husband or my wife is on this account with me, knowing that when you come in you won’t be harassed about your preferred name and pronouns, those kinds of things aren’t just about good customer service, they are about treating everyone equally and with respect,” Dry says.
To check out the Human Rights Campaign’s Corporate Equality Index, go to HRC.org.
If you are interested in learning more about Climate First Bank’s Pride Banking, visit ClimateFirstBank.com/Personal/Pride-Banking.
Learn more about Addition Financial by going to AdditionFi.com.
