From the outside, and even the inside, a U.S. Bank location just north of downtown Phoenix doesn’t look all that much different from any other branch in the company’s network. There are some simple rainbow-themed signs on the windows, as well as internal artwork that includes a photo of a same-sex couple.
The lender branch, however, places a particular focus on welcoming LGBTQ+ people. Staff members represent and understand the group’s needs, according to the lender. People who bank at the branch find the company is offering a particular welcome to users of the LGBTQ+ area.
“It is simple, but if you’re not used to seeing everything, it makes a big difference,” said Dom Sims, a U.S. Bank local president focused on the LGBTQ+ area.
Bank works to appeal to certain populations
The site at 3800 N. Central Ave. is U.S. Bank’s first branch in Arizona focused on LGBTQ+ persons, but the business operates 10 different locations around the country focused on specific areas.
In addition to LGBTQ+ persons, branches are geared toward Black individuals, military officers and soldiers, and Asian Americans, Hawaiians and Pacific Islanders. All of these branches are in Los Angeles, San Francisco, Chicago, or Seattle locations. U.S. Bank is planning to start more branches focused on particular populations, including those focused on Latinos.
The Central Avenue unit of U.S. Bank has been in operation since 1999. Before transforming the branch, which Phoenix Mayor Kate Gallego visited this year as part of a quick tour provided by business professionals, the firm considered the needs of the LGBTQ+ area.
“I love it that anyone can feel welcomed in this branch,” she said. The firm’s proximity to the Melrose District, which has a number of businesses geared toward LGBTQ+ persons, was cited as a factor in last year giving it a community target.
A few more lenders have opened branches that are targeted at particular groups, but the majority of them are targeted at Latino or Black customers. Chase does have a branch in the Greenwich Village area of New York City, featuring rainbow curtains, that’s located around the corner from the Stonewall Inn, the site of a 1969 mob that marked a turning point for LGBTQ+ rights.
The U.S. Census Bureau estimates that 8% of the population belongs to the LGBTQ+ community. Bisexuals made up 57% of this group, according to a Gallup survey cited by U.S. Bank, gay men 21%, and lesbians 14%, with transgender people and people of other sexual orientations or gender identities accounting for the rest.
Many of the same financial concerns
Found that LGBTQ+ people reported financial achievements and progress similar to, and in some cases better than, the non-LGBTQ+ population.
For example, 69% of the LGBTQ+ people surveyed reported that they manage their debts well or have no debts at all, compared to 67% of non-LGBTQ+ respondents. Also, 60% of LGBTQ+ people reported having good credit scores, compared to 52% of non-LGBTQ+. Additionally, those who were LGBT+ were slightly more likely to own homes, openly discuss finances with others, and feel at ease taking financial risks.
A dedicated branch might be better suited to handle some situations, the report noted.
When interacting with financial institutions, transgender and nonbinary people face unique challenges, the report says. “Changing the names or genders on financial accounts can be a costly, challenging process that frequently necessitates legal paperwork,” says transgender customers. “Having to use an incorrect name or gender when carrying out financial transactions can be dangerous for transgender customers.
Even when banks allow people to use their chosen names on accounts or cards, according to the report, bank databases sometimes don’t update the information throughout, meaning transgender people might see their former names listed, which can prove unsettling, or hear them spoken, which can be potentially dangerous.
There is little chance that a transgender person’s former name will be used to refer to them to others when they conduct bank transactions online, but in-person transactions are a different story, the report continued. Customers from other companies might hear something that could compromise a transgender customer’s safety.
Changes in name can also have an impact on credit scores. Credit reporting agencies “auto-update their credit file” when people change only their last name, as is a common practice in marriages and divorces,” according to U.S. Bank in its report. However, when people switch their first and last names, their credit scores frequently drop, indicating a built-in industry bias that prevents transgender people from getting a job.”
Another important aspect of estate planning
Estate planning, which specifies instructions for transferring assets and property to others at death, is another important financial issue. “Creating a robust, ‘bulletproof’ estate plan can be an important measure for LGBTQ+ persons”, as unsupportive family members might try to block their intentions.
Working with attorneys, J.P. Morgan suggests LGBTQ+ people include “no contest” clauses, clear beneficiary designations, and medical letters attesting to a person’s state of mind when they drafted the plan. These can be prudent steps for anyone.
