BMO Launches Trans-Friendly Mastercard

Bank of Montreal (TSE: BMO) (NYSE: BMO) is implementing Mastercard’s True Name.

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This feature allows transgender and non-binary people to use the name of their choice on all BMO personal and small business credit cards without having to change their legal names.

First Canadian Financial Institution to Launch True Name

In 2019, Mastercard developed True Name in response to the need for bank cards to reflect the true identities of many members of transgender and non-binary communities.

BMO’s U.S. subsidiary, BMO Harris Bank, was the first financial institution in the world to partner with Mastercard and issue the cards. Since then, True Name by Mastercard has been available worldwide, with the partnership with BMO announced today marking a first in Canada.

According to a recent study by Mastercard, 90% of people in the transgender community had to use ID whose name or gender didn’t match their presentation, and only one in four (25%) saw their name changed on their credit cards.

This can lead to feelings of anxiety (48%), embarrassment (45%) and frustration (42%). Additionally, 43% have been verbally harassed for identifying as transgender.

The introduction of True Name by Mastercard was designed to mitigate this negative experience and misrepresentation.

Starting Monday, existing BMO customers can request a new card, which displays the name they’ve chosen. Customers can call the number on the back of their credit card or visit a BMO branch to request a replacement card.

Management Commentary

“BMO is committed to removing barriers to inclusion and providing safe, accessible banking to our customers,” said Jennifer Douglas, Head, North American Retail & Small Business Payments, BMO Financial Group.

“We’re proud to partner with Mastercard to introduce True Name in Canada. All our customers should feel comfortable using the name that reflects who they really are – it’s one more way we can help alleviate financial anxiety so that they can focus on their financial goals.”

Wall Street’s Take

On March 10, Desjardins analyst Doug Young kept a Buy rating on BMO and C$161 price target. This implies 8.4% upside potential.

The rest of the Street is bullish on BMO with a Strong Buy analyst consensus rating based on nine Buys and two Holds. The average Bank of Montreal price target of C$165.36 implies 11.3% upside potential to current levels.

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