Is there a need for a new credit union to provide financial services for the lesbian, gay, bisexual, transgender and queer community?
Equality Washington, established in 2014 and led by Phillip Endicott, believes there is. The group planned to open an LGBTQ financial cooperative in 2015 but do far, has failed to achieve the goal.
Endicott said he experienced an overall lack of support from the industry about the idea. Some even questioned the need for an LGBTQ credit union.
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Equality Washington received support from some credit unions and industry professionals, but the organization was unable to amass sufficient funding to finance start-up operations and meet federal and state requirements.
However, despite industry resistance, doubts, and insufficient funding, Equality Washington is not giving up.
The group contends the need exists to serve the diverse and unique financial needs of LGBTQ people because they continue to experience discrimination, including credit discrimination, in the financial services industry despite the growing social acceptance of their lifestyles.
"Some credit unions and banks are very reluctant to extend a helping hand to this community because there is concern over whether it will be successful; or, they don't understand how to reach out to a minority group that is fighting exposure as an angry community or a community that is not immediately accepted," Endicott explained. "That is not a community that you rush to necessarily unless you really understand it. We found there was a lot of reluctance and misunderstanding."
Since Equality Washington introduced its idea two years ago, however, some credit union professionals and organizations have recognized the LGBTQ market is a potential growth market for cooperatives.
For example, the Filene Research Institute released a report last year that offered evidence large segments of the LGBT population continue to struggle against financial marginalization and discrimination. Because credit unions were formed to meet the needs of underserved financial consumers, the LGBT community could potentially become a boon for credit unions over the long run, the report noted.
Michael Beall, a senior consultant at Credit Union Strategic Planning in Tacoma, Wash., has been working with Equality CU organizers over the past six months. Beall said is exploring whether Equality CU could be incubated within an existing credit union or be added a field of membership; but, nothing has been finalized yet.
"Credit unions have always been about treating people fairly, but they also need to be sensitized on how LGBT consumers access financial services and to make sure that their product offerings and their staff is trained in a way that helps LGBT folks get the services they need," he said.
Learn more about the LGBT market and why it could be a growth opportunity for credit unions in the June 8 issue of Credit Union Times.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
