Building LGBTQ-focused fintech solutions

LGBTQ+ people have seen their political and economic status improve and regress in different ways over the past ten years. While residents who belong to LGBTQ+ communities—making up more than 7% of the total US population—have had their rights to marriage enshrined nationally, many states have doubled down on other legislation that blocks LGBTQ+ people’s rights to gather, or transition, or face a discrimination-free workplace.

While confronting these challenges, LGBTQ+ business owners and consumers have continued to grow as a demographic in need of private-sector support. LGBTQ+ enterprises contribute more than $1.7T to the US economy, and have created tens of thousands of jobs nationwide. But, at the same time, LGBTQ+ people across ages face higher rates of job losses than non-LGBTQ+ counterparts.

With this in mind, fintechs have an opportunity to build out products that meet the needs of LGBTQ+ people while also addressing systemic concerns. 

Gender diversity

Many LGBTQ+ people have gender identities that are outside the binary of man/woman or male/female. According to the Pew Research Center, this fact is especially true for younger generations; five percent of young adults in the US identify with a gender different than the one assigned to them at birth. Failing to accommodate that reality risks excluding millions of young users from a product or service.

When building out products for LGBTQ+ communities (and in general), product designers should offer more than two gender options—including, potentially, an open entry option.

Onboarding and KYC

Sustaining products that operate outside binaristic norms is easier said than done. Product design is one thing, but compliance is another—especially in the financial sector, which enforces strict KYC and AML mechanisms to prevent fraud. 

Since many trans and nonbinary people use names that are different from those given to them at birth, major financial leaders like Mastercard have built out LGBTQ+-focused solutions. The card issuer’s “True Name” program allows trans and nonbinary people to use their chosen name on cards. This product also keeps LGBTQ+ people’s safety in mind, helping avoid the process of payment becoming an opportunity for others to question users’ seeming discrepancy between their gender identity and name assigned at birth.

Ongoing support

Finally, LGBTQ+-focused fintech solutions require ongoing, engaged support. LGBTQ+ communities are notably diverse in their needs and financial circumstances. Support teams should expect to engage both with affluent consumers as well as those between jobs or struggling to secure housing. This requires a larger suite of use cases to respond to, as well as uniquely sensitive and tactful support teams buttressing what a fintech’s products and services offer.