Trust and personal connections are the two strongest drivers of purchase intent among Hispanic consumers. They can also be the most difficult bonds to establish between a consumer and a brand. Credit unions, however, have something of an advantage.
Seeing the benefit of serving the Hispanic population is one thing. Truly understanding what it takes to do so is quite another.
To gain that understanding credit unions must begin by fully examining
their current outreach and potential for growth. This places the credit
union in a much better position for defining success and for developing a
strategic plan for achieving that success.
Financial inclusion is a two-way street. A credit union can offer up fair, dignified, affordable and culturally relevant services, but if community members don’t respond, the impact of those products and services is greatly reduced. To inspire that action, credit unions have to come from a position of authenticity.
Fewer people today are surprised when they hear statistics on the growth
of the U.S. Hispanic population. It’s been a hot topic of conversation for
years. What does surprise them, however, is where in the United States much of this growth is occurring.
Described as digitally savvy, young and socially connected, U.S. Hispanics are early adopters whose technology-forward mindset is less about devices and more about community.
Every day, at least 2.5 quintillion bytes of data are created. Each time we
swipe a credit card, activate a GPS or “Like” a post on Facebook, our movements are cataloged. It’s so much, in fact, that the amount of data gathered in one day is more than what we’ve seen since the beginning of time.
Whether it’s a local credit union or a national food chain, every organization hoping to increase its reach within the country’s large and influential Hispanic market must first understand its target. As with every nationality present in our diverse country, understanding of Hispanic behaviors and values is subject to the influence of preconceptions and stereotypes.
The U.S. Hispanic market’s sheer size, youth and rate of growth has many in the
financial services market understanding now is the time to adapt for service to
this critical consumer segment. Credit unions in particular, understand serving this community is an investment in the sustainability of their cooperatives.
Due to the dramatic rise in popularity of prepaid solutions, prepaid-card
providers are popping up all over the place. Unfortunately, not all of these
parties have the best interests of cardholders in mind.
HISPANIC EXPERTISE Why the Hispanic Market?
It’s the largest, fastest-growing and most underserved community by credit unions. You can’t wait for the Hispanic market to adapt to you, you must adapt to the market.
Don’t believe us?
Even the FDIC projects that Hispanics will account for more than half of the U.S. retail banking growth in the coming decade.
Now
1 out of 6 U.S. residents is Hispanic
1 in 5 children under 18 is Hispanic
1 out of 2 Hispanics is unbanked or underserved
Hispanic purchasing power exceeds $1 trillion
2020
By 2020, second generation Hispanics are projected to outnumber their parents throughout the country
2050
Hispanics are expected to make up almost one third of the US population by 2050
Want vs. Need.
Serving this market will demand you look at personnel, product, processes and promotional strategies in a new way. It’s not enough to want to serve the Hispanic market, you must realize that you need to serve it in order to grow.
Do Well By Doing Good.
Not only will your efforts help your bottom line by increasing financial consumer growth and assets, your efforts will empower and create wealth among local underserved populations. You will be making a difference in the communities you serve, while charting a course for future growth.
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Coopera is a Credit Union National Association (CUNA) Exclusive Alliance Partner.
