The LGBTQ + community is more likely to feel stress or anxiety about money , research says , so how can banks tailor their products to this demographic ?
LGBTQ + BANKING
HOW CAN BANKS IMPROVE FINANCIAL INCLUSION FOR
LGBTQ + PEOPLE ?
The LGBTQ + community is more likely to feel stress or anxiety about money , research says , so how can banks tailor their products to this demographic ?
WRITTEN BY : ALEX CLERE
The cost-of-living crisis is providing a unique situation for many families , with rising grocery prices and high inflation in many countries adding pressure to purse strings . For LGBTQ + families – whose rights ‘ seem ’ under greater pressure now than at any other point in the last 15-20 years – the problem appears particularly stark .
Members of the LGBTQ + people are more likely to have negative feelings about their personal finances , according to research published earlier this year by the Center for LGBTQ Economic Advancement & Research ( CLEAR ) and the Movement Advancement Project ( MAP ). Roughly twice as many LGBTQ + respondents as non- LGBTQ + respondents reported feeling anxious , overwhelmed and depressed about their finances , the survey continues .
Andrew Arwas , Director of Transformation at Chetwood Financial , says : “ The state of the economy means consumers are seeing their spending power diminished and finances stretched , with a third of UK households living payday to payday . For people in the LGBTQ + community – many of whom already face financial hurdles because of their gender identity or sexual orientation – these problems are magnified .” Arwas therefore believes it ’ s “ high-time ” for banks to step up and deliver more inclusive financial services .
What banking needs do LGBTQ + people have ? As Billie Simmons , Co-Founder and COO of LGBTQ + banking app Daylight , said in an interview last year , “ the large traditional banks don ’ t even think about us outside Pride month ”. Even though , on the surface , it might appear as though LGBTQ + customers have the same banking needs as non-LGBTQ + people , there are actually some very specific requirements that banks can help meet .
Those surveyed by CLEAR and MAP were more likely to have a federal student loan covering the cost of their education ; and , in 40 % and 82 % of cases respectively , incurred some out-of-pocket expenses related to the formation of their family or the cost of gender-affirming care .
92 July 2023