Page 10 - Perspectives Vol.15 Issue 2

This large and fast-growing minority group is also younger— more than half (60%) are millennials or younger, Lionbridge reported. The growth of this group means the Hispanic workforce will triple by 2020, the Bureau of Labor Statistics projected. Credit unions can’t afford to miss out on this opportunity: Hispanics are younger, getting educated, and working, making them an important part of credit unions’ plans for the future. To serve this burgeoning group, credit unions must dig into their culture and become part of it.
Family is a critical social unit, according to Ohio State University. The Hispanic culture places emphasis on moral responsibility to assist other family members, nuclear and extended, who are experiencing financial problems. Research from Prudential showed more are married compared to
the general U.S. population, and nearly half have children under the age of 18. This means, credit unions who serve the Hispanic community will likely enjoy a lot of referrals.
Hispanics not born in the U.S. bring many of their cultural ties with them, including soccer. In addition to supporting household members, Prudential discovered, 42% of non- U.S. born Hispanics send money to relatives in their home country, and 20% do not have any savings or investment products. Hispanic-owned businesses, according to BusinessWire, have grown 31.6% since 2012, more than double all U.S. businesses. At the same time, 19% live below the poverty line, versus 13% of the general population, according to the Center on Budget and Policy Priorities.
All this data tells a story to help shape your interactions, from marketing materials to employees and training to financial education efforts. Prudential’s research found that a lack of understanding of retirement funds and other financial products led to Hispanics not using them, in addition to a lack of trust. With work and planning, your credit union can build that trust and understanding.
For starters, community is a priority for Hispanics, so becoming part of it is key for credit unions to reach them. Collaborate with community centers and churches for financial education and training. Support their interests, such as soccer leagues, with your money and your time. Earn the endorsements of community leaders to serve as ambassadors for your credit union and help gain the trust of Hispanics. They are family oriented, often low-income, but they are also aspirational, so marketing must reflect that.
STATISTICS ON HISPANIC MARKET
ARE CATHOLIC. RELIGIOUS HOLIDAYS ARE VERY IMPORTANT.
ARE MARRIED VS 74% OF THE GENERAL US POPULATION. FAMILY IS EVERYTHING.
HAVE CHILDREN >18 IN THE HOME VS 24% OF GEN POP.
FINANCIAL SERVICES NEEDS
90%
81%
49%
42% 1ST GEN SEND MONEY HOME 31.6 % START NEW BUSINESS
20% DO NOT HAVE SAVINGS OR INVESTMENTS
1 IN 5
LIVE BELOW POVERTY LINE
PREPARED BY SER TECHNOLOGY
8 Vol. 15, Issue 2