MADISON, Wis.–The estimated 10-million lesbian, gay, bisexual and transgender (LGBT) Americans have unmet needs when it comes to financial services, according to new research released by the Filene Research Institute.
A new report, “Understanding the LGBT Opportunity in Financial Services,” states that the LGBT community has a distinct set of financial needs and priorities. The report was authored by George Hofheimer, chief knowledge officer with Filene, and Matthew A. Lieber, instructor in political science at Madison College.
According to Filene, the research explores market needs and opportunities, discrimination, transgender and financial identity and includes a case study with Equality Washington. The authors find that same-sex households are less likely than heterosexual households to own property and hold mortgages. Further, a majority of the LGBT population in one survey is worried about being denied a home mortgage for sexual orientation, not financial reasons.
“Credit unions have a tremendous opportunity to be a differentiated provider of financial services for this growing consumer segment,” said Hofheimer. “The recent Supreme Court ruling to legalize same-sex marriage and national attention on transgender issues have heightened awareness of the unique needs of this population.”
The research concludes with implications and opportunities for credit unions to serve LGBT members. The authors recommend a marketplace assessment including a pro and con evaluation. A strategic plan for outreach can follow, which may include an awareness plan, member messaging, language considerations, internal service and culture training, and ensuring fair pricing and product recommendations that are appropriate for this group.
For info: www.filene.org.