By Ray Birch
NEW YORK—As a member of the LGBTQ community, Myles Meyers knows what it’s like to be treated in a different manner by a financial institution.
“I know what it feels like to be looked at differently and even treated differently by a bank,” said the CEO and founder of the newly chartered Superbia Credit Union.
As CUToday.info reported, Superbia was granted a credit union charter in September by the Michigan Department of Insurance and Financial Services to provide financial services to the LGBTQ community. It plans to open in the spring of 2020.
“I personally know what the LGBTQ community faces, because when I walk into a bank by myself, as a man in his 50s, I am treated just like everyone else. But if I walk into that same bank with my husband, I sense the difference immediately,” Meyers said.
Changes in Attitude
Specifically, Meyers said what he senses is a change in the service person’s attitude.
“It can either be an over-sensitivity to my lifestyle or I can be simply treated differently,” said Meyers, who has broad experience in financial services, including working at banks, insurance companies and leading enterprise strategy and global business planning for Foresters Financial.
While Meyers does not believe he has ever been discriminated against by a financial institution, he has heard many stories from those within the LGBTQ community who have experienced discrimination. That includes reports of LGBTQ consumers being charged higher loan rates, denied service, getting locked out of their accounts, or having had their accounts closed as they transition from one sex to another.
All of that has convinced Meyers the cooperative business model provides a great opportunity to deliver financial services to a segment of society that is being marginalized and set apart.
“Iowa State University did a study that shows how over a 25-year period, from 1990 until 2015, same-sex couples applying for a mortgage faced a 73% greater chance of being denied than a traditional couple,” he said. “They examined hundreds of thousands of mortgages across the country and they found that all things being equal, those were the odds.”
Developing the Value Proposition
Meyers emphasized that with all these matters in mind, Superbia, which is Latin for pride, is developing its value proposition, understanding the financial needs of the LGBTQ community. The CU plans to award 30% of its net income to LGBTQ organizations.
While the credit union now has fewer than 10 employees, plans call for a virtual operation with no branches, just an operations office in New York. It will offer all standard banking services, such as checking, savings, and a full line of loans, including mortgages. But its field of membership is national—people can join by going to https://superbiaservices.com/—and significant growth potential is there, Meyers said, declining to disclose the CU’s projected asset size when the doors open.
A $1.7-Trillion Market
Myles Meyers
“The LGBTQ community is a 16-million-person market with $1.7 trillion dollars in economic power between its individuals and its businesses,” Meyers said. “When you compare the LGBTQ community to the general population, only 50% have a base banking account, like checking or savings or CDs.”
In addition to regularly facing service issues, the LGBTQ community is not really being reached out to by financial institutions, contended Meyers, other than sporadic promotions tied to Pride events around the nation. Meyers said the LGBTQ community is looking for a financial institution they can identify with, adding that the total LGBTQ market could be much larger than even the data show.
“This is where we come in,” said Meyers. “We are about reflecting the community in our brand, in our visuals and in our products. We’re saying to the LGBTQ community that we're here for you and we're part of the community. And, by the way, you own this institution if you become a member. I think people will be coming to us very quickly.”
Prepared for Growth
Meyers declined to estimate how large the credit union could one day become, but said the organization has several “levers” it is ready to pull to be able to handle rapid growth.
“We know the potential for growth is there, and that the LGBTQ community tends to respond very quickly to ideas they like. We will be able to absorb a large number of members without harming the financial health of the credit union.”
Meyers added that if an organization provides the LGBTQ community with superior service they will come back for more offerings. With that in mind, Meyers said Superbia is already considering how it might possibly expand its offerings down the road, noting the additional offerings might include insurance, healthcare, and wealth management specifically designed for LGBTQ consumers.
“The credit union is our focus and it’s our foundation; that's what we're working on,” he said. “But knowing you have potentially a 30-million person market, and people who will come back to you for more services if they like you …”
Spat Upon, But…
Meyers acknowledged the difficult situations that can arise from being gay or different from others, but has also experienced great pride in getting the credit union started.
“I have been spit on walking down the streets of New York City. This has obviously been a passionate effort on my part,” he said, adding that obtaining the charter was a three-year process. “The effort has been incredibly humbling. The number of people in organizations who have stepped forward to help. There's nothing like this model out there among 5,700 credit unions. This is not strictly a business opportunity, it's much more than that. In fact, it's more of a service opportunity. I'm very proud to be part of this.”