June is National Pride Month, a time to honor and celebrate the Lesbian, Gay, Bisexual, Transgender, and Queer (LGBTQ) community. Many of the contributions to fintech and financial services from members of the LGBTQ community go unnoticed. But what can no longer be overlooked is the growing number of resources in the financial services industry that are designed to serve the unique needs of LGBTQ financial services consumers. To this end, we’re taking a look at three companies that are dedicated to making banking and financial wellness easier for those in the LGBTQ community.
Calling itself “banking for you and your chosen familly,” Daylight may be the pre-eminent, dedicated banking solution provider for the LGBTQ community. Founded in 2020, by “queer millennials” Rob Curtis (CEO), Billie Simmons (COO), and Paul Barnes-Hoggett (CTO), Daylight enables individuals and families to access a range of key banking services without worrying about supporting companies or initiatives that are detrimental to the LGBTQ community.
What services does Daylight provide? Like other banking solutions providers, Daylight offers a deposit account – backed by MetaBank – an Apple and Google Pay-compatible debit card, and financial wellness solutions via mobile app. The app has a round-up feature to help incentivize and ease savings, as well as goal-setting tools to help users plan for both expected and unexpected financial commitments. Daylight can be used by any U.S. citizen, 18 years or older.
“Our community has $1 trillion (in) spending power in the U.S. and yet 53% of LGBT+ people struggle to maintain regular savings,” Daylight Operations Associate Peyton Swift wrote recently on the Daylight blog. “That’s high-key unacceptable. We’re done letting the system ignore us. We’re building Daylight around our unique needs: different timelines, different kinds of families, different goals, and different futures.”
New York-based Superbia Services was founded in 2017 as a “profit for purpose” entity focused on developing community-based financial products. In 2020, the organization launched the Superbia Credit Union, the first LGBTQ-focused profit-for-purpose financial institution with a nationally-oriented membership. Located in Michigan, Superbia CU is the first new credit union to receive a state charter in more than 33 years.
“When operational, Superbia Credit Union will benefit members through tailored products and services, more favorable rates, and grants made regularly to organizations that help support and advance causes of the LGBTQ community,” a statement credited to Superbia CU read. Myles Meyers, founder and CEO of Superbia Services noted that, for all the gains made by the LGBTQ community in recent decades, there are still major issues of discrimination.
“In the same way a bakery can refuse a cake, one bank’s discrimination could lead to higher interest rates on homes, rejection of student loans, judgement on credit for health needs, outdated products and services for LGBTQ individuals and families, and lack of acceptance and understanding among traditional institutions,” Meyers said.
In addition to serving the national LGBTQ community with banking services – including credit cards – Superbia will offer its members both life and healthcare insurance that takes into account the unique needs of LGBTQ Americans. This includes providing coverage regardless of relationship status, gender identity, or preventative medications. Superbia has pledged to donate 10% of all revenue earned each year from its financial products and services to the Superbia Foundation.
Pandemic-related complications have slowed the regulatory approval process for many nascent financial institutions – including Superbia. According to Investopedia, the credit union had hoped to open its doors in the summer of 2021. The company hopes to begin operations soon.
Queer Money is not a fintech. But when it comes to financial wellness resources for the LGBTQ community, the Queer Money podcast is an option that deserves more attention. Created by David Auten and John Schneider, who launched their website, The Debt Free Guys, in 2013, Queer Money bills itself as the #1 gay podcast focused on the financial needs of the LGBTQ community.
Recent episodes of Queer Money have looked into the challenges of being an angel investor, answers to questions about “lesbian money,” savings strategies for low-wage workers, and social security issues for same-sex couples.
Sharing their story on their webpage, Auten and Schneider note that at one point the married couple found themselves embodying “the gay cliché of living fabulous but being fabulously broke.” From this point, the two financial professionals decided to “walk the talk”, overhauling their finances and using their personal and professional experiences to help “queer people (and allies) live fabulously not fabulously broke” via a combination of credit card debt reduction, entrepreneurship, and better savings and investing.
Auten’s background includes years as a Business Systems Analyst as well as an institutional broker/project manager. A graduate of the University of Colorado, Denver, Auten is also the co-author (with John Schneider) of 4: The Four Principles of a Debt-Free Life and is a nationally recognized expert on queer and straight personal finance. Schneider has experience as a financial services compliance analyst, and spent more than a decade with Charles Schwab in a variety of capacities including Senior Manager for Advisor Services Strategic Integration.
