Pride Month and Financial Equality: Addressing the Wealth Gap in the LGBTQ+ Community

Pride Month is a wonderful time to celebrate the LGBTQ+ community and all the progress made towards equal rights. It’s also an ideal moment to explore how we can all work to further advance equal opportunity and financial equality, both in the LGBTQ+ community and beyond.

Although this is a time for celebration, it’s essential to recognize that there is still a significant wealth gap within the LGBTQ+ community. According to a recent report by the Williams Institute, LGBTQ+ individuals are more likely to experience poverty and economic insecurity compared to their non-LGBTQ+ peers. Unfortunately, this disparity grows larger for LGBTQ+ people of color and transgender individuals.

As an LGBTQ+ friendly bank, we’re firm believers in advancing financial equality for all individuals, including those in the LGBTQ+ community. Although addressing the wealth gap is something that each of us can play a role in, here’s how we’re working to do our part.

Promoting access to affordable banking services for all

Affordable banking that’s accessible for all is just one of the many ways to address the wealth gap. Unfortunately, for many LGBTQ+ individuals, traditional banking services may not be accessible or affordable due to discrimination and a lack of financial resources or credit. 

At Varo Bank, we constantly strive to empower our customers by providing them with banking services and resources that can help them reach their financial goals. That’s why we offer a range of affordable banking options, including online bank accounts with no hidden fees or minimum deposits, and high-yield savings accounts to help people save money and manage their finances more effectively. 

With a lack of financial resources or opportunity, building credit can be an uphill battle, especially for those navigating a wealth gap. That’s why we also offer credit-builder credit cards1 with no credit check, no minimum security deposit, no interest, and no annual fees. We also offer fair and flexible cash advances2 designed to provide quick access to cash to cover the unknown for a single flat fee per advance.

Providing financial education and resources

Another way to address the wealth gap is to provide financial education and resources that can help empower LGBTQ+ individuals. By building their financial knowledge and skills, these individuals can apply what they’ve learned as they work towards a better financial future.

This can include resources on budgeting, saving, borrowing, building credit, and paying down debt, as well as information on how to navigate discrimination and other financial challenges. At Varo Bank, we offer a range of financial education resources designed to help everyone build their financial literacy, including our Money 101 financial resource hub.

Supporting our LGBTQ+ colleagues

We’re proud to support our LGBTQ+ colleagues, both during Pride Month and beyond. Our Queers & Peers Employee Resource Group strives to create a community where members feel valued, included, and empowered.

We acknowledge the unique experiences, perspectives, and viewpoints of our group members to help inform Varo about our LGBTQ+ customers and the issues they face, both financial and otherwise.

What can we do to address the LGBTQ+ wealth gap?

We all play a part in addressing the LGBTQ+ wealth gap and promoting financial equality for all. This can include advocating for policy change at the local, state, and federal levels in an effort to reduce discrimination and promote a more equal society for LGBTQ+ individuals everywhere. It can also include advocating for policies that increase access to financial services, affordable housing, healthcare, and other basic needs.

A multifaceted approach is required to address the LGBTQ+ wealth gap. This includes access to affordable banking, empowering financial education resources, workplaces that celebrate and support our LGBTQ+ colleagues, and a collective approach to pro-LGBTQ+ policy changes.    

At Varo Bank, we wish everyone a Happy Pride Month!

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Unless otherwise noted above, opinions, advice, services, or other information or content expressed or contributed by customers or non-Varo contributors do not necessarily state or reflect those of Varo Bank, N.A. Member FDIC (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s) other than Varo.

1 Varo Believe is a secured credit card designed to help you build credit; however, a variety of factors impact your credit and not all factors are equally weighted.You must add money before using, money added sets the spending limit. Funds spent are held in your Varo Believe Secured Account to pay off any balance in full monthly, when due. Quals apply.

2 Varo Advance(VA) is a small dollar line of credit. Initial limits range from $20-$250, work your way up to $500 over time. Fees range from $1.60 - $40 based on loan amount. Current limit can be viewed in the Varo App. Only one outstanding advance at a time, must be repaid in full prior to requesting a new advance. Varo Bank Account, with minimum Qualifying Direct Deposit (QDD) of $800 in current or previous calendar month required. Limits and eligibility evaluated daily and may change at any time. Add'l qualifications apply.

Qualifying direct deposits are an electronic deposit of your paycheck, pension or government benefits (such as Social Security or Unemployment Insurance) from your employer or the government into your Varo Bank Account and/or Varo Savings Account. Tax refunds and government stimulus payments, person-to-person payments (such as Venmo and Varo to Anyone), and funds deposited using a Varo routing number are not considered a direct deposit.