Perception of Banks - LGBTQ
LGBTQ individuals have a hard time saving and investing for their future, and many of them are not optimistic enough to perceive that they have the necessary traits to invest for their future. Additionally, information about the perception of high net-worth LGBTQ individuals toward banks could not be found.
Information about the perception of high net-worth LGBTQ individuals toward banks could not be found. We started the search for this information by looking into studies, reports, and articles that talk about social, economic, and demographic trends, which includes information on high net-worth individuals. We looked into reliable sources such as Pew Social Trends which publishes social and demographic attitudes of Americans. However, the strategy yielded no information specific to the social and demographic trends of individuals from the LGBTQ community. Moreover, there was no particular information dedicated to the perceptions of LGBTQ individuals toward banks.
We then looked into financial research sites for comparative analysis on topics such as the banking perception of high net-worth LGBTQ individuals compared to the overall perception of the LGBTQ community and what wealthy LGBTQ’s think about banks as compared to straight people. We were able to find information from site such as Experia, Credit Cards, and the FDIC. However, there was no information specific to high net-worth individuals when it comes to the bank they trust and which banks they prefer.
Lastly, we decided to look for research papers that publish about this certain trend. We looked into reliable sources such as Wharton, William Institute, Research Gate, and BAI. However, none of these sources provided specific information about the topic. These sites do have information about LGBTQ individuals and their community, and information such as the steps taken for LGBTQ Equality, but nothing about the perceptions of high net-worth LGBTQ individuals toward banks.
A survey about LGBTQ financial planning by Experia found that 44% of LGBTQ participants stated that there are struggling to maintain adequate savings. It also found that 16% of their monthly income is dedicated to discretionary spending, and only 11% is dedicated to saving or investment. Moreover, about 29% of the participants stated that saving for their retirement as their primary financial concern.
When it comes to savings accounts, a survey from Prudential Financial, found that 40% of LGBTQ Americans have a savings account. Furthermore, 18% have opened an Individual Retirement Account (IRA) which were not sponsored by their employer. Analysis of the statistics from the survey found that many LGBTQ Americans are not well-equipped for turbulent financial times in their lives. This is because many of them do not build wealth that would last beyond their working years.
Moreover, TD Ameritrade reported that LGBTQ millennials were less optimistic about their financial goals. The company also concluded that these participants found themselves to be “lacking the necessary expertise” to invest for the future.
The William Institute reported that 25% of LGBTQ individuals have an annual less than $24,000. Furthermore, 55% of LGBTQ individuals stated that they are using credit cards to build rewards or miles, while 52% perceive themselves as savers. Additionally, the US bank decided to create the first LGBTQ banking site. The site features articles that talk about same-sex wedding financial planning and how modern families can “break the stereotypical mold.”