BIZ Online NGLCC

A new survey reveals that LGBT adults are less comfortable sharing intimate details about their finances with service providers than heterosexual consumers and thus less likely to seek expert assistance in financial matters.

The survey from Harris Interactive, a global market research and consulting firm, shows that 54 percent of LGBT adults said they are very or somewhat comfortable with their financial services provider compared to 67 percent for heterosexual customers.

"This reinforces the importance of developing a clear level of trust between a financial adviser and a client," said Joseph Kapp, BIZ's financial services columnist and a principal in a Washington, D.C. wealth management firm.

"Many financial advisers don't necessarily understand the issues and complexities of being gay or lesbian. They don't understand the issues of coming out, and are sometimes reticent about asking difficult questions about family relationships or whether someone is out at work. Either or both of those can have a significant impact on the faithful execution of financial and estate plans," added Kapp.

While LGBT and straight consumers rely on many sources for financial advice, including accountants, financial planners and attorneys, LGBT consumers are more likely to rely on trusted friends or seek independent sources of information such as the Internet.

The survey found that:

• Thirty-three percent of LGBT consumers cited the Internet as a source they often use for financial information, while only 26 percent of heterosexuals turned to the Internet frequently for financial advice;
• One-fifth or 20 percent of LGBT adults often turn to their friends for advice compared to 13 percent of heterosexuals; and
• Another 11 percent of LGBT consumers said television is often a source they turn to for advice, while only 6 percent of heterosexuals do the same.

National Gay & Lesbian Chamber of Commerce officials say the survey points out the need for enterprising but culturally sensitive financial service providers to reach out to the LGBT market.
 
"This survey shows there is a prime opportunity for financial services companies to cultivate the LGBT segment," said Justin Nelson, co-founder and president of the NGLCC. "Those who realize the need and do it in a culturally competent way will undoubtedly find success."
 
The nationwide survey of 2,637 U.S. adults, ages 18 and older, included 343 respondents who self-identified as gay or lesbian and was conducted online in mid-June. The survey was conducted in conjunction with Witeck-Combs Communications, Inc., a strategic public relations and marketing communications firm with special expertise in the LGBT market.
 
The survey uncovered several gaps in the way LGBT consumers save and invest their assets as well. While 75 percent of heterosexuals have savings accounts, only 67 percent of LGBT adults said they did.

When asked whether they have investment accounts, 32 percent of heterosexuals said they did compared with 24 percent of LGBT adults. Thirteen percent of heterosexual respondents said they have neither savings nor investment accounts. A slightly higher proportion of LGBT adults (18 percent) had neither type of account.