We’re really excited to launch the Daylight brand today.
You’re probably wondering “why LGBT+ banking”? Well that’s a great place to start. We’ve spent thousands of hours spending time getting to know the unique needs of the LGBT+ community and here’s what we’ve learned:
LGBT+ people aren’t preparing for their futures fast enough.
This was perhaps as much of a shock to us as it might seem to you. So here’s what that means.
It costs more to be LGBT+
Just being LGBT+ sets us off on the back foot. According to the WNYC queer money study in 2019, LGBT+ people are 40% less likely to receive financial support for college once they come out to their families. As a result, it is estimated that LGBT+ people have on average 50% more college debt than non-LGBT+ people.
Our trans siblings have huge bills for transition support which varies widely but can exceed $100,000 at a time when we’re least prepared to have that much money available. This means credit card debt, high interest rates and poor FICO scores.
So the moment we decide to be ourselves, the system is stacked against us.
We struggle to play catch up (unless we’re really privileged)
The next thing we learned is that we struggle to play catch up. Not only are we ignored by the banking system (except at Pride), we have 25% lower financial education and half of us do not maintain a regular savings habit. This makes sense – many of us have rocky relationships with our parents and we’re probably not learning great financial discipline from our families. And while we feel shame about ourselves and our money, we’re not learning as much from each other as we could.
Traditional banks are busy putting rainbows on things while giving us lower mortgage and loan approval rates. This is not cool. And while the laws have changed, we still face continued employment discrimination, especially if we present in a queer way. So we start off further behind and even when we’re doing our best we struggle to get on the front foot.
This affects us later in life
Over time, this adds up. These issues have a cumulative effect on LGBT+ wealth creation. Half of older LGBT+ people worry about having sufficient funds for their retirement – this is 40% higher than non-LGBT.
When we ask people “where do you want to retire?” the answers almost universally include the words “where other LGBT+ people are”. The thing is, queer villages are often more expensive, meaning that we’re going to have to work pretty hard to be able to retire in safety, peace and community.
We’ve spent so much time surviving our childhoods and early adulthood that we’ve not laid the foundations for a retirement we deserve.
Enter Daylight – shining a light on LGBT+ finances
We are the first generation of LGBT+ people who can live openly. We are everywhere the light shines, and it’s time for us to take the next steps in equality for our community, focusing on the wealth gap between us and the wider world. We’ve created Daylight for this purpose.
Daylight is the first and only digital banking platform for LGBT+ in the US. It’s designed by a team of queer millennials solving problems for queer millennials. We’re solving problems that we’ve experienced first-hand and in doing so aim to solve these for the community at large.
It’s our job to shine a light on LGBT+ money matters – starting with educating our community on all of the ways that the system is stacked against us and laying the foundations for great financial habits, making it easier for us to access fair financial products and working together to build the futures we deserve.
We chose the name Daylight as a statement of intent. We are a community full of promise, ambition and dreams. We are unapologetic about our queerness and it’s time to take the next step in economic freedom for our community, with brightness, optimism and hope.
Join us and let’s build fulfilling futures… together.