LGBTQIA+ folks deserve equitable opportunity to pursue their own American Dream

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As Pride Month comes to a close, it is important for us to reflect on the large strides forward our country has made towards equality for the LGBTQIA+ community. Support for same-sex relationships and marriage in the United States has widely increased in the last two decades, and social acceptance surrounding LGBTQIA+ people has dramatically risen globally in recent years. But the fight for a better, fuller, and richer life for all is far from finished.
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Almost 1/3 of LGBTQIA+ respondents say they have experienced bias, discrimination, or exclusion by or from organizations or individuals within the financial services sector.
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In fact, according to a 2022 survey conducted by the National Endowment for Financial Education, almost one-third of LGBTQIA+ respondents shared that they had experienced bias, discrimination, or some form of exclusion within the financial services sector.

The hard truth that we continually face as a country is that the United States only legalized same-sex marriage within the last decade, and LGBTQIA+ folks still face systemic bias in many sectors, from discrimination in education, their workplaces, and even in their healthcare treatment.

Financial equality is no different. The traditional credit scoring system is one of many sources of institutional bias, and the effects of its systemic discrimination are pervasive in an individual’s life — from the ability to purchase a car to commute to work to paying for a child’s college education. An HRC Foundation analysis found that even in 2021, people who identify as LGBTQIA+ still earn about 90 cents for every dollar that the typical worker earns. ‍
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Acceptance is not enough — we must reinvent the system 

‍Equality is about far more than social tolerance or legislative efforts. In order to eradicate unconscious human bias, it is imperative that we look beyond conventional vehicles for change and towards leaders who are putting in the work for change today. Zest AI’s revolutionary consumer credit underwriting technology helps financial institutions see their borrowers more clearly through the use of machine learning. This allows your institution the chance to provide its borrowers with an equitable opportunity to pursue their own American Dream.

A fair shot at getting approved for a loan could mean the ability to buy a home in a more desirable school district, raise a family in a safe environment, and create generational wealth for perhaps the first time. This is crucial for LGBTQIA+ people, who — according to the Williams Institute — are consistently more likely to live in poverty compared to their straight counterparts. When lenders are able to extend credit more equitably, everyone gets a chance to open doors to a more enriched life. ‍
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Equity is allyship

‍Equitable access to credit has the potential to reshape the United States, and fair lending for all Americans means uplifting communities who have been historically underserved, including LGBTQIA+ folks.

We know that for credit unions, member experience is a top priority, and they approach lending with a people-first philosophy. As partners, we are dedicated to helping credit unions better serve their members, improve credit access by using AI, streamline risk assessment, and increase approvals. But we also recognize that desire for promoting equity transcends organizations — we have to move forward together.

The greatest way a financial institution can show support to its LGBTQIA+ borrowers is to give them the shot they deserve, and provide that opportunity to transform their lives through the use of smart, inclusive, and efficient technology. At Zest AI, we’re committed to allyship through financial equity.

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Zest AI wants to recognize the contributions of our Summer 2023 interns for offering their insights to our site — thank you Isabel Taulli for this blog.