This Finextra long read series will focus on moving beyond performative allyship to explore structural inclusion during and after Pride Month - a celebration of the LGBTQ+ community and commemoration of the contributions of lesbian, gay, bisexual, transgender
and queer culture. By adopting inclusive policies, promoting visible role models, and diversifying their talent pool, fintech firms can champion real LGBTQ+ inclusion and ensure that the industry remains a welcoming environment where all employees can be their
authentic selves.
However, in the US, the crackdown on Diversity, Equity, and Inclusion (DEI) programmes and initiatives could lead to a less pronounced Pride celebration this year. In January 2025, the White House issued
a Presidential Action to “coordinate the termination of all discriminatory programs, including illegal DEI and ‘diversity, equity, inclusion, and accessibility’ (DEIA) mandates, policies, programs, preferences, and activities in the Federal Government, under
whatever name they appear.”
Impact of DEI crackdowns
While companies like Google, Amazon, Meta, and some Wall Street banks have
reversed their DEI-related policies that were established after the murder of George Floyd and the Black Lives Matter Movement in 2020, others see a shift away from DEI as bad for business. Apple, most recently, rejected a shareholder proposal asking the
company to abolish its diversity and inclusion programmes because they expose the company to potential litigation. JP Morgan Chase’s CEO Jamie Dimon also reaffirmed the bank’s support of DEI earlier this year, stating that the bank will continue its “outreach
to Black, Hispanic, LGBTQ+, veteran, and disabled communities.”
In an
article for Sibos, Rogier van Lammeren, managing director, head of global transaction products, Lloyds, picked up on the business case for diversity. “The business case for promoting diversity is clear. Extending opportunity and equality for all of society
simply is the right thing to do, and we also know that diverse companies outperform industry peers on performance and profitability. Diversity is known to drive innovation, better client insight and attracting talent therefore it is important that we recognise
and respect the diversity of thoughts and beliefs across different cultures and countries.”
Alan Koenigsberg, former SVP commercial solutions at Visa, added: “We've entered an era of pride month, with lots of companies turning their logos pride coloured for the month even though they may not be through and through as authentic as we would like.
It is always delightful to see any step towards inclusivity - no negative aspersions intended - but this can show that sometimes more progress is still needed beyond the surface.”
Roberto Leva, trade and supply chain finance relationship manager at the Asian Development Bank, also mentioned that “the exclusion of the LGBTQ+ community will hurt the national development and GDP of any country because it simply leads to a loss of human
capital. Ultimately, diversity is a driver of creativity, so hindering the LGBTQ+ community is a missed opportunity to improve things like decision making or problem solving.” But how can the fintech industry champion LGBTQ+ inclusion?
Inclusive product design
Fintech firms and financial services providers have the opportunity to empower the LGBTQ+ community by addressing their unique financial needs and challenges, such as allowing users to use their chosen names and pronouns on platforms and cards. Accommodating
chosen names, pronouns, and gender identity must be done with robust privacy and data security, as these names may be different to those on legal identification. However, this can be another way of affirming identity, a use case for digital identity, and reducing
potential misgendering.
Financial planning tools that also cater to diverse families, various family structures and dynamics within the LGBTQ+ community, such as same-sex couples, single individuals by choice, and chosen families, must also be considered. Further to this, financial
providers can serve this market by providing resources on how to navigate challenges disproportionately faced by the LGBTQ+ community such as the costs associated with building a family, gender affirmation, or accessing inclusive healthcare.
Lending opportunities that implement fair and equitable practices and consider the unique circumstances that LGBTQ+ individuals experience, is also a credible business opportunity. By actively incorporating these inclusive product design principles, fintech
firms can not only empower the LGBTQ+ community financially but also foster a more equitable and inclusive financial ecosystem for all.
Internal DEI policies
Fintech firms can champion LGBTQ+ employees by developing clear, non-discriminatory policies that protect these communities from harassment, but also prioritise equitable hiring and promotion practices. In addition to ensuring partner benefits, gender confirmation
procedures and family-friendly initiatives are included in benefits packages, employee resource groups (ERGs) can provide space for LGBTQ+ employees to connect.
Compensation practices can also ensure equity in employee pay, addressing potential pay disparities based on identity, and training can help address unconscious bias as well as foster an environment where all employees are encouraged to be allies of their
LGBTQ+ colleagues. The financial services industry must enable all employees to reach their full potential and this can only be done if the workplace is truly inclusive and welcoming.
Financial services companies can also partner with LGBTQ+ organisations and host year-round LGBTQ+ focused campaigns, showcasing LGBTQ+ employees on social media, providing training on LGBTQ+ issues, and championing visible role models.
Fintech firms can champion real LGBTQ+ inclusion by implementing inclusive policies, offering specialised benefits, providing LGBTQ+ inclusive training, establishing LGBTQ+ networks, and actively promoting visible role models.