When CanadianSME asked executives in banking, fintech, and insurance how they are altering the way they serve Indigenous and LGBTQ+ entrepreneurs, one topic emerged repeatedly: inclusion cannot be confined to the marketing or CSR silos. It has to be present in underwriting models, product design, frontline training, and supplier selection.
For diverse small business owners, the difference between a photo-op and a true partnership frequently comes down to how internal mechanisms work. We’ve compiled insights from executives and advisers who are changing financial services for Indigenous and LGBTQ+ SMEs, based on current Canadian practice and research.
“Inclusive underwriting has to move from the margins into the core.”
Leaders at Canada’s main banks understand that traditional underwriting frequently disadvantages minority entrepreneurs, particularly those without inherited wealth or conventional collateral. Indigenous founders may rely on communal assets or revenue streams that do not fit neatly into mainstream models, whereas LGBTQ+ entrepreneurs may encounter gaps in personal credit histories or career paths.
Several institutions have begun to rethink these paradigms.
- A Canadian bank executive cites specific Indigenous processes, such as RBC’s Indigenous Advisory & Finance practice and BDC’s collaborations with Indigenous Financial Institutions, as examples of how risk assessment is evolving.
- These teams collaborate with community-controlled lenders and programs, such as the Aboriginal Entrepreneurship Program and the Indigenous Growth Fund, combining non-repayable contributions and development loans with bank financing.
“When we consider cash flow in the context of long-term community agreements and government-backed loan guarantees, the risk profile shifts,” the CEO further argues.
Leaders in the LGBTQ+ community emphasize the need of viewing gay and trans entrepreneurs as a significant sector of Canada’s SME economy, rather than a niche. Data from national studies demonstrate that 2SLGBTQI+ entrepreneurs generate billions of dollars in revenue while facing impediments to funding and networks.
One counsellor in Canada’s 2SLGBTQI+ Entrepreneurship Program explains that inclusive underwriting recognizes non-traditional ownership arrangements, chosen families, and various career pathways as viable and not necessarily riskier.
“Bias training is necessary—but not sufficient.”
Most major financial companies now provide some form of diversity, equity, and inclusion (DEI) and bias training for employees. Leaders featured for this story emphasize that one-time workshops rarely improve customer results. “You can’t educate your way out of structural impediments; you must also modify incentives and processes,” says a senior human resources leader at a national insurer.
Canadian groups, such as Pride at Work Canada and the Business Development Bank of Canada, recommend a multi-layered strategy as a best practice. This includes:
- Implementing inclusive language and pronoun practices in client onboarding and documentation.
- Training frontline staff and underwriters on the commercial reality of Indigenous and LGBTQ+ SMEs, rather than just abstract concepts.
- Connecting manager performance assessments to measurable inclusion objectives, such as diverse client satisfaction scores or supplier diversity goals.
Executives also prioritize representation. “If an Indigenous entrepreneur never sees an Indigenous banker or advisor across the table—or an LGBTQ+ founder never encounters a banker who is out at work—that sends a message,” says one banking executive. Programs that promote 2SLGBTQIA+ and Indigenous leaders inside financial institutions are therefore considered part of the customer inclusion agenda.
“Supplier diversity is one of the fastest ways to move real money.”
While lending is a popular topic, many leaders believe that buying from Indigenous and LGBTQ+-owned SMEs is also a significant tool. Canadian banks, insurers, and large corporations are increasingly setting goals to diversify their supplier chains, often in collaboration with certifying agencies and chambers. The Canadian Queer Chamber of Commerce (CQCC) and partners certify LGBTQ+-owned businesses and connect them to corporate procurement opportunities. The Canadian Council for Indigenous Business (CCIB) maintains Indigenous business directories and offers Progressive Aboriginal Relations (PAR) certification.
“When financial institutions commit to multi‑year contracts with diverse suppliers—whether for technology, catering, consulting, or marketing—they create predictable revenue streams that make those businesses more bankable,” explains one supplier diversity leader.
For Indigenous SMEs, these procurement agreements align with federal commitments, such as the 5% Indigenous procurement target and significant project participation, thereby strengthening the impact of loan guarantees and specialized financing. Meanwhile, LGBTQ+ entrepreneurs benefit from corporate programs linked to the 2SLGBTQI+ Entrepreneurship Program, which prioritizes procurement and export growth.
“The business case is clear: diverse SMEs are growth engines.”
Research shows that Indigenous and LGBTQ2+ entrepreneurs in Canada are inventive, export-oriented, and growth-focused, but are underserved by traditional financial solutions. According to a top strategist at a Big Four organization, survey data suggest that SMEs are highly dissatisfied with current banking services, particularly the speed of credit decisions and the quality of specialized counsel provided.
“If financial institutions get this right, they are not doing charity; they are winning loyal clients in a competitive market,” they argue.
CanadianSME’s coverage of inclusive succession and leadership planning reveals that various entrepreneurs have distinct perspectives on long-term planning, community impact, and talent. Banks and insurers require products that enable daily cash flow, technology adoption, cross-border expansion, and structured exits/ownership changes.
Leaders observe growing interest in:
- Flexible credit lines and term loans, along with advising services for digital transformation or expansion.
- Small, diverse-owned enterprises can benefit from packaged risk products (e.g., cyber, key-person insurance) and education.
- Capital arrangements that enable employee ownership or community engagement, especially in Indigenous situations.
“The more we understand the specific growth journeys of Indigenous and LGBTQ+ SMEs, the better we can design products that meet them where they are,” one regional bank executive says.
“Co‑creating with communities is the only way this works.”
Throughout conversations, speakers emphasize that significant inclusion is created by, not for, diverse businesses. To achieve this, programs should be co-designed with groups such as NACCA, Indigenous Financial Institutions, CQCC, Futurpreneur, and WEKH. Feedback loops should also be established to continuously improve products. While co-creation may take longer than a top-down product launch, executives believe it leads to a better fit and greater trust.
“When Indigenous and LGBTQ+ entrepreneurs see their experiences reflected—in application questions, in who is in the room, in which risks and opportunities are recognized—they are more likely to engage with us early, not just when there is a crisis,” notes one senior risk officer.
For CanadianSME readers, the message from the front lines is cautiously optimistic: financial institutions are moving beyond token gestures toward structural reform, but sustained pressure and collaboration from diverse entrepreneurs and ecosystems will be required to maintain that momentum.
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Disclaimer: This article is based on publicly available information intended only for informational purposes. CanadianSME Small Business Magazine does not endorse or guarantee any products or services mentioned. Readers are advised to conduct their research and due diligence before making business decisions.
