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  • HHM 2016: Una Gran Celebración with Colleagues, Friends

    Posted by on October 20, 2016

    Another Hispanic Heritage Month (HHM) is in the books, and we couldn’t be more proud of the reaction our colleagues and friends had to our multi-company celebration.

    To inspire more of the people we work alongside each day to learn about and engage with the vibrant Hispanic culture in the U.S., Coopera, along with our Affiliates Management Company (AMC) sister companies, invited associates to participate.

    People of all ages and cultures took advantage of Coopera’s artifacts showcase, and of course, an on-site food truck. It was an absolute blast, not to mention a great honor to play even a small role in exposing more individuals to the vivacious, live-life-to-the-fullest outlook of Hispanic people.

    Tacos Jalisco came on site to allow AMC employees a chance to try authentic foods from Latin America.

    AMC celebrates HHM in food-truck style!

    AMC celebrates HHM in food-truck style!

    Tacos Jalisco

    Tacos Jalisco


    Coopera Project Assistant Kenia Calderon

    Coopera Project Assistant Kenia Calderon

    During the celebration, Coopera’s Kenia Calderon shared, among other items, a cross depicting Father Romero, a hero of the Salvadorian people who spoke out against poverty and social injustice.

    For my part, I displayed a gift given to me by the mother of my goddaughter in Havana, Cuba.

    It was so important to have the support of our senior leadership, as well as the logistical help and excitement of our human resources team. A big thanks goes out to everyone who was so instrumental in organizing our HHM activities!

    Undoubtedly, many of you had the opportunity to host or participate in your own HHM efforts, and we would love to hear about them. Or maybe you have an idea for how you will celebrate during HHM next year (scheduled for Sept. 15 through Oct. 15, 2017)! Either way, drop us a note in the comments section.


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    Payments Offer ‘Natural Place to Start’ with Multicultural Strategy

    Posted by on September 13, 2016

    Today, one in six consumers is Hispanic. By 2030, it’s anticipated that statistic will rise to one in three. This rapid growth is one of several potentially disruptive trends creating a need for businesses of all types to shift how they think about serving multicultural consumers.

    As the buying power of the Hispanic market alone eclipses $1.2 trillion annually, marketers and other strategists are working diligently to attract this influential segment to their brands. Consider U.S. financial and insurance companies like Wells Fargo, JPMorgan Chase and Nationwide. In 2014, this business category spent a total of $352 million on Hispanic media. It’s clear these brands understand the value of the Hispanic market and are investing in smart segmentation strategies to make the most of its potential.

    Beyond the Hispanic market, however, we see other cultures beginning to emerge as important to U.S. business. Many kinds of businesses are adopting a total market strategy in which multicultural segments are incorporated under a comprehensive consumer plan. Examples include Coca Cola and Western Union. Each has created diverse language communications, based on a genuine understanding of the cultural nuances within their vast and diverse marketplaces. Each of these brands works hard to position its products and services as vital to the happy lives of global consumers.

    Marketers and other leaders recognize that emerging multicultural markets are best served by strategies that go far beyond merely translating communications. That’s because multicultural consumers are insightful; they are also not afraid to turn away from brands that don’t “get it.” They will easily ignore products and services they don’t believe genuinely embrace their essence.


    Talking payments alongside Todd Link of Dupaco Credit Union at the 2016 TMG Executive Summit in Nashville

    For financial institutions in particular, payments products lend themselves well to a multicultural strategy. In fact, the topic was one I had the pleasure of discussing with financial institutions at this year’s TMG Executive Summit during the Future of Payments Panel session. Here’s a look at a few trending payment options and some insight about their prevalence among the Hispanic population specifically.

    Debit Cards

    The perception that “debit cards are dead” couldn’t be further from true among Hispanics. They are a prime target market for debit products.

    From 1992 to 2012, debit cards were the first overall choice among consumers. And while that’s changed for non-Hispanics, a Nielsen’s Share of Wallet study found Hispanics do differ from the national average somewhat when it comes to actual usage of their financial instruments. Forty-four percent use debit cards most often, while another 34 percent prefer cash or check. Only 19 percent use credit cards most often, compared to 35 percent nationally. The preference for debit and prepaid cards applies whether Hispanics are banked, unbanked, native or foreign-born, millennials or Generation Xers, consumers or business owners.


    New payment options beyond debit, cash and credit are beginning to compete for walletshare. Although cheaper and faster forms of payment targeting the unbanked (some in the form of international blockchain companies and Bitcoin providers) are making some inroads, it’s doubtful this alternative currency or the technology that enables it will replace Western Union-type providers in a fatal swoop. Most Hispanic consumers who send money abroad are happy with current non-traditional finance industry providers. They’re also tech savvy. More Hispanics than non-Hispanics own a smartphone and use it to conduct financial transactions.

    PayPal & Mobile Wallets

    Just how tech savvy are Hispanics? Consider the following: According to the TD Bank Checking Experience Index, Google Wallet, Pop Money, Venmo, PayPal, SquareCash and other services are important among Latinos. Nearly half of Latino respondents surveyed by the index indicated they used PayPal within the last three months to send money to peers, citing ease of use and convenience. These consumers also made 22 percent of all mobile payments in 2014 (16 percent of the U.S. consumer base today).

    What’s more, at least 85 percent of Hispanics in the U.S. have mobile phones compared to 88 percent of non-Hispanic whites. However, 82 percent of Hispanic mobile phone users have a smartphone, compared to 68 percent of non-Hispanic whites. Hispanic mobile users with bank accounts show a higher rate of use of mobile-banking relative to mobile phone users with bank accounts overall. They make transactions, pay bills at least weekly and send money internationally with their smartphones.

    Prepaid Cards

    According to the Federal Reserve, prepaid cards are the fastest growing form of non-cash payments. They are cost-effective, flexible and easy to use for consumers, governments and businesses. A lot of innovation exists from specialized providers more so than traditional financial institutions.

    Importantly for multicultural payment strategies, federal regulators are working to ensure language barriers don’t prevent non-English speaking consumers from having a good experience. The more prepaid providers are incentivized to meet the needs of an ever-changing and multicultural market, the better prepaid cards will become as a viable alternative to debit and credit cards.

    The variety of payment options available to today’s consumers creates a terrific opportunity for both financial institutions and consumers. Credit unions, in particular, should continue developing a deeper understanding of multicultural member needs and behaviors to effectively reach new consumers. Payments, with their increasing emphasis on mobility and innovation, are a natural place to start.

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    Watch for the Word ‘Half’ in Hispanic Consumer Studies

    Posted by on August 25, 2016

    As the child of Mexican immigrants, I grew up in a household that was unique in many ways from those of my friends and peers. One of the differences was that my parents paid bills, saved money and accessed credit outside the traditional financial system. Hindsight being what it is, I can now see how much of an influence those financial choices had on my eventual career path.

    Although it came with challenges, my non-traditional American childhood absolutely empowered me. Today, I feel so fortunate to be living out my passion – introducing more Hispanic consumers to the life-changing benefits of becoming a credit union member.

    What’s equally exciting to me is introducing more organizations to benefits of serving Hispanic consumers. As I travel the country, talking with credit unions, colleges and other consumer-centric organizations, I’m learning so much about how perceptions continue to shape reality.

    One of the perceptions that Coopera colleagues and I are working hard to reshape is this idea the Hispanic market is homogenous. In fact, there are many nuances to the culture. Let’s take a look at a few…

    Acculturation, Language & Immigration Spectrums

    Acculturation describes how quickly an individual or set of individuals adopts the behaviors, beliefs/values and attitudes of a new culture in addition to their native culture. The spectrum goes from un-acculturated through semi-acculturated to fully acculturated.

    It’s critically important for marketers and others to understand where their target market resides on the spectrum. For instance, a credit union that believes it is best suited to serving semi- or fully acculturated Hispanics will want to know members of these two segments prefer TV and print media outlets, while radio is important for the un-acculturated. In terms of product development, credit cards are common among fully acculturated Hispanics, but that is far from true for un-acculturated individuals.

    In addition to behaviors, values and attitudes, there’s also a spectrum of language preferences that vary from Spanish to bilingual to English. Immigration status, too, changes from recent arrival to established resident to U.S. born. All of these characteristics and preferences impact the way Hispanic consumers value (or don’t value) financial services to the quality of their lives.

    Financial Attitudes and Behaviors

    There is tremendous opportunity for credit unions to foster trust and expand the financial education of some Hispanic community segments. Saving for retirement, seeking financial advice, long-term goals, personal debt and financial confidence are areas that require special concentration across segments of the Hispanic market. Here again, however, there are differences between groups within the culture.

    This is why it’s so important to view the results of national studies, surveys and indexes with a grain of salt. Take, for instance, an extensive study of more than 1,000 Hispanic individuals between 25 – 70 with incomes of $25K or higher.

    Here are just a few of the findings from that particular national study:

    –More than half indicated a poor or very poor understanding of workplace-based retirement plans.

    –Half of respondents expressed a preference for Spanish communication and materials.

    –Respondents with lower incomes and those born outside of the U.S. place higher priority on funding near-term goals such as education for their children.

    When reviewing national studies, be mindful of the word “half.” Let it serve as a reminder of the great diversity that lies within the U.S. Hispanic community. If a particular study finds half of its respondents prefer Spanish, for instance, that could mean the other half did not.

    The biggest take away: It’s critically important to understand your local market needs. Like much of the general population, Hispanic consumers strive to improve their financial situation. At the same time, acculturation, language, immigration status and other characteristics such as age, income and country of birth, have a huge influence on how that value is applied day-to-day.

    While the Hispanic population continues to grow, it will continue to change. As you approach strategic planning season, consider whether your credit union could benefit from a local market study of the influential Hispanic consumers in the communities you serve.

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    Credit Union Adds Three Fresh Perspectives in One New Board Member

    Posted by on August 2, 2016

    Achieving a variety of inclusivity and diversity objectives is becoming more important for credit union boards of directors. One such board is that of Community 1st Credit Union in Ottumwa, Iowa. The Juntos Avanzamos-designated credit union recently welcomed Edith Cabrera-Tello to its board.
    Edith brings a unique perspective to the credit union’s leadership as the youngest director, as well as the only female and the only Latina on the board. We had the chance to sit down with Edith to chat about her appointment, as well as her insight on the important role credit unions play in the formation of good financial habits for today’s consumers.

    Eidth Linked InHow long have you been a member and board member of Community 1st?

    I’ve been a member of the credit union since 2011 and a board member since January 2016.

    What is your view of credit unions as a financial option for the Hispanic community?

    When my husband and I wanted to start our own business, we asked our bank for help. They denied our application for a loan. We then went to a credit union and received the support we were looking for. That’s when I learned more about credit unions and the services they offered.
    I also worked for a school as the Hispanic community outreach coordinator at the time. We would offer workshops and occasionally had someone from a credit union come talk about personal finances. That was a great opportunity for those in our community who are immigrants learn how credit unions could help us. They open doors for individuals simply by accepting an ITIN number (Individual Taxpayer Identification Number). The credit union we worked with also provided financial support to make the workshops happen. That’s something no bank had offered to do.

    What changes have you seen in how Community 1st serves its members and specifically its Hispanic members since you’ve been a board member?

    I have noticed how many more services the credit union is working to make more inclusive for our community. ITIN lending has been quite beneficial, but they are not stopping there. They are continuing to look for ways to improve. The leadership has hired the right people to assist the community, too, which is incredibly important.

    How has the work with Coopera and receiving the Juntos Avanzamos designation impacted outreach to the Hispanic community?

    The designation is not only helping the Hispanic community; it’s helping everyone in our area. A lot of that has to do with awareness and exposure to new things. Take for example, board members working to properly pronounce Juntos Avanzamos. You can see their desire to do so correctly. They have seen the importance of the designation and all the efforts that come with it. They understand that the better we serve our community, the greater return there will be on the investment.

    Could you describe your experience as a board member of a credit union from the moment you decided to volunteer until now?

    It’s been pretty good. I am the only woman, the youngest and the only Latina on the board. I feel comfortable, and the other board members help me when I need it. They have so many years combined experience, I am learning from them while hopefully they are learning from me. It’s been incredible to see how they take the time to help the credit union grow.

    What advice do you have for any potential Hispanic board members thinking about or having been approached to serve on the board of a credit union?

    We need diversity on credit union boards. Being involved on the board not only allows directors to have a say on decision making specific to the credit union; it also allows that individual to support the larger community.

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    Post Offices Could Be Credit Unions’ Next Competitors

    Posted by on July 5, 2016


    Here I am at 9 years old!

    When I was a young girl in the U.S., my parents – both born in Mexico – visited the local U.S. Postal Service (USPS) office to do more than buy stamps and mail packages; they also bought money orders. Without a banking relationship in our community, my parents considered the post office to be a dependable and acceptable way for them to conduct these specific financial transactions.

    Today, as an adult and a strong advocate of the credit union movement, I find myself reflecting on my family’s experience. My parents bought money orders at the post office because it was convenient, reasonably priced and they weren’t asked a lot of questions. Simply stated: The post office fulfilled a simple need.

    What if the post office had offered other financial services? Services similar to those offered by today’s credit unions? Would they have chosen to use those services?

    The changing landscape of financial services, coupled with struggles faced by the USPS, is creating what could be perceived by credit unions as an unsettling reality: Competition from post offices, especially among minority populations, is a real threat.

    Consider the following:

    Financial institutions have closed about 1,900 branches over the last few years, leaving many low-income neighborhoods without a place to conduct banking. As a result, non-traditional financial entities that levy huge fees, such as payday and cash lenders, have become go-to spots for many who live in these areas.

    At the same time, the USPS delivers more mail to more addresses in a larger geographical area than any other post in the world. It handles 40 percent of the world’s mail volume to more than 151 million homes. But in the age of technology, it struggles to keep up. First-class mail volumes continue to drop, and billions of dollars in net loss just this year threaten the livelihood of this “national treasure.” Post offices in rural communities across the country have experienced closures and reduced hours in recent years.

    To recalibrate and create relevancy, the USPS is considering various ideas to leverage interest and loyalty from financially underserved communities, which includes Hispanics, the youngest, fastest-growing minority group in the U.S. One of its ideas capitalizes on continuing interest in e-commerce. The other is centered on postal banking. Their goal is to make check-cashing and other basic financial services part of their product/service mix.

    The very approach my parents relied on when I was a child is what may challenge the entire community financial institution industry.

    The USPS may be able to offer financial services, such as electronic money orders, bill payments, surcharge-free ATMs and affordable microloans, at a lower cost than credit unions. It’s also well-positioned to serve those who are currently underserved for several reasons. Among them:

    • There are offices in most communities
    • They have a trusted reputation
    • They can operate at a loss
    • Democratic Sens. Bernie Sanders and Elizabeth Warren, along with numerous community activists, support the USPS efforts to serve the financially underserved.

    Once an idea is more thoroughly understood, it’s easier to take a proactive approach. Knowledge can be leveraged; ideas exchanged. Consider the following questions: Can credit unions compete if post offices transition into financial services locations? Can they effectively connect with and earn the trust of underserved communities? Is it feasible for credit unions to develop personalized products?

    Without hesitation, I believe the answer is “Yes!” to all of the above. You may be wondering why I’m so optimistic.

    Credit unions have long prided themselves on knowing their members and potential members. They already provide consumers an alternative financial route to traditional banks. So, targeting consumers who do not want a relationship with a “mega bank” is already in the wheelhouses of U.S. cooperatives.

    Currently, more than 100 million Americans are using credit unions. According to the World Council of Credit Unions’ annual Statistical Report survey, global credit union membership grew by an additional 10 million people in 2014. Growth resulted for various reasons:

    • Credit union loans are more accessible to low-income buyers and to those recovering from poor credit ratings.
    • Aggressive first-time buyer programs for weary and inexperienced millennials are being offered by credit unions of all sizes.
    • They generally offer lower interest rates, especially for post-graduation debt management.

    All that said, staying ahead of the competition requires getting creative. Three ideas comes to mind:

    • Increase your loan pool – Given that immigrants and millennials represent a sizable chunk of the financially underserved, build a stronger community and digital presence to let them know you want their business.
    • Make social networks work for you – With so many platforms available to communicate with audiences, taking a more active role on such sites allows broader reach among target audiences.
    • Build upon current differentiators – Think about the attributes that make credit unions appealing and accessible and combine them with the financial needs of your local market. Design measurable marketing tactics around that brand model and proactively develop products that are culturally relevant.

    Without question, it’s preferable to be in a position to choose one’s response vs. being in reactionary mode. Keeping a watchful and curious eye out for what’s transpiring with the USPS will empower credit unions to be at the forefront of growth trends.

    It’s said wisdom comes with age. I’ve come to understand that when acclimating to anything new (much like my parents did when they arrived in the U.S.), it’s liberating to have alternatives. Being limited to one way of accomplishing something feels constricting. I’m confident had a credit union been an option for my parents, they would’ve felt welcomed, connected and understood the endless possibilities that occur with strategic financial guidance.

    Instinct and experience tells me there are hundreds, if not thousands, of other immigrants interested in achieving their definition of financial success. The benefit of a credit union partner that proactively asks questions so as to guide members along the path of their entire financial journey – from selecting what types of accounts to open to planning for significant milestones such as college or a new home – is priceless. So is the peace of mind that comes with it. I know. I’ve walked in those shoes.

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    Community 1st Credit Union Earns Juntos Avanzamos Designation

    Posted by on May 23, 2016

    The movement added another Juntos Avanzamos-designated credit union this spring. Welcome, Community 1st Credit Union!

    Comm JuntosThe designation, which translates to “Together, we advance,” is a national recognition of the work and commitment made to offer financial services to the Hispanic community. On May 5, 2016, we were thrilled to join Guadalupe Sanchez Salazar, Consulate General of Mexico, and other local dignitaries in Ottumwa, Iowa, to celebrate the designation with Community 1st Credit Union.

    For many Hispanics, navigating the U.S. financial system can be challenging. Credit unions make the process easier. Community 1st is leading the way and hopes to inspire other credit unions around the country to realize the importance of embracing Hispanic community initiatives.

    Community 1st is the first credit union in Iowa to receive the designation, which our firm and the National Federation of Community Development Credit Unions (the Federation) recently expanded into a nationwide program. The cooperative worked with our team to set a strategic plan for becoming a fair, dignified and affordable option for the local Hispanic community.

    Community 1st is an exemplary financial institution that understands the importance of achieving internal readiness before launching into a Hispanic growth strategy. Notably, 10 percent of Community 1st’s more than 200 employees are bilingual.

    “As a credit union, we have a mission to serve underserved populations,” said Anne Hagen, Community 1st vice president of marketing. “We — all credit unions — are not-for-profit institutions. Part of our ‘profits,’ we give back to the community.”

    Even though most credit union leaders are aware of the growing Hispanic population in their fields of membership, many are are unsure how to begin serving this young, fast-growing, influential community. Half the battle is developing the right mindset within the credit union. The ultimate achievement is a collective state of mind in which the entire organization believes serving the Hispanic community is not only the right thing to do, but also a profitable, priority business strategy.

    Kudos to Community 1st for becoming the first credit union in Iowa to achieve this important milestone.

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    University Puts Itself Under the Inclusion Microscope

    Posted by on April 7, 2016

    isu (2)My alma mater, Iowa State University (ISU), has begun to examine how it can improve diversity and inclusion among its students and staff. Naturally, it’s an initiative about which our entire team is excited and happy to support however we can.

    This spring, I had the terrific opportunity to share my student experience at ISU, as well as my thoughts on how the university can become even better at supporting multi-cultural students and staff. What follows is an excerpt of the article I contributed to the university’s alumni publication, Visions.

    This particular issue is packed with insights from other passionate ISU supporters and students. Many of their thoughts are applicable to the credit union environment, as well. So, if you have a few minutes and are curious as to the ways in which multi-cultural consumers experience different facets of their life at different stages of their journey, I’d encourage you to give it a read.

    My quest toward a college degree was far from a given for me. As the daughter of foreign-born parents who hadn’t attended college in Mexico nor the U.S., I knew it was up to me to own the responsibility. I was fortunate to have friends and advisors at Perry (Iowa) High School to guide me through the entrance exam, application and financial aid processes. Together, we navigated what could otherwise have been a long, confusing road. 

    I’m sharing this story because I believe it’s an experience shared by many first generation Latino Iowans. 

    I’m filled with gratitude as I as I think about ISU’s courage in choosing to ask the question: How can we be better [at attracting and serving Latino students]?” Imagine ISU as the premier four-year university attracting, retaining and graduating young, influential multi-cultural students.

    Even though more multi-cultural students are attending college than ever before, they tend to choose two-year degree programs because they attend school part-time, live outside campus and have outside responsibilities (such as providing and caring for family members). If this dynamic is altered and multi-cultural students begin to feel part of a larger whole, I believe they, along with their families, will create thriving communities that perpetuate growth and change across the state and nationwide.

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    Hispanics Own Credit Cards, But Prefer Other Payment Methods

    Posted by on February 18, 2016

    While more than a third of U.S. consumers use credit cards most often to make purchases, just 19 percent of U.S. Hispanics do the same. That is not to say members of this growing and increasingly influential minority group do not own credit cards. In fact, nearly 60 percent have one in their wallets.

    Why, then, do Hispanic credit cardholders appear to prefer other methods of payment, such as cash and debit cards?

    It’s an issue I’ve studied for several years as part of an Affiliates Management Company work group. The group counts Corey Skadburg, a credit card expert and the director of credit and risk for Coopera sister company TMG Financial Services, among its members.

    TMG Financial Services Director of Credit & Risk Corey Skadburg

    TMG Financial Services Director of Credit & Risk Corey Skadburg

    “The majority of credit card products on the market today are not geared toward the specific needs of the Hispanic market, particularly for those individuals who may not have traditional credit or for whom fees are a major turn off,” Skadburg said. “It’s easy to see how that lack of focused attention and customization can feed an apathetic relationship. But this is a market the industry simply can’t ignore. We expect to see more credit cards issuers – both large and small – funnel increased resources toward getting it right with Hispanic cardholders in 2016.”

    As Coopera has advised work groups, steering committees and industry associations, it’s important to recognize the Hispanic market is multifaceted. We know, for instance, not all Hispanic consumers lack traditional credit. We know there are niche and subgroups who all want different things from their financial products, including credit cards. This will be an important consideration as the credit union and other card-issuing industries evolve to serve Hispanic consumers.

    Looking ahead, it’s possible we may see Hispanic consumers who own a credit card become more active as digital wallets (at least those powered by credit cards) become more popular. That’s because Hispanic consumers tend to over-index on all things mobile. Many are mobile banking users and a sizable percentage say they have used mobile payments in the last 12 months. As Apple Pay, Android Pay and Samsung Pay are accepted in more places, we may see more Hispanic credit cardholders activate, use and become increasingly loyal to their cards, albeit through a completely separate brand. Of course, credit cards are not the only payment method available to mobile payment users, so it will be interesting to see how Hispanic consumers, in particular, chose to configure their digital wallets.

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    Hispanic Businesses are ‘First and Foremost’ American Businesses

    Posted by on February 4, 2016

    americanEntrepreneurialism and a solid work ethic are strong tenets of the Hispanic culture. Given these characteristics, it’s no surprise the number of Hispanic-owned businesses in the U.S. has expanded as rapidly as it has. Since 2007, these firms have grown an astounding 57 percent to more than 4 million.

    Like most small businesspeople, Hispanic leaders need strong guidance, both financial and otherwise, to achieve and maintain success. The potential to increase business revenues is seen in the fact Hispanic-owned businesses have a tendency to generate average annual incomes well below the average in the U.S. (even below the average for minority-owned businesses).

    Credit unions, particularly those focused on the growth of their Hispanic memberships, are well-positioned to provide this guidance. That’s because many of the cooperatives that are planning – maybe even executing – strategies to attract Hispanic consumers are already on track to serve the community’s business owners.

    Hispanics account for one out of every five new entrepreneurs in the U.S. Entrepreneurs rely heavily on financial services. Yet, credit unions will do well to consider creating programs that go beyond business loans and other financial products to help business owners optimize operations and grow their firms. Consider solutions that reduce business expenses, such as payroll costs, for example. Offering the employees of Hispanic businesses payroll direct deposit to checking accounts or to prepaid reloadable cards will help the owner eliminate payroll check printing and will provide employees more access to their money. This type of a program can be mutually beneficial, as the business saves time and money while the credit union establishes potentially long-term relationships with its employees.

    Like any new product or service offering, the development of Hispanic business solutions should start with research and data analytics. This will allow the credit union’s product development team to segment the market and provide truly valuable, highly customized services. Start with your existing Hispanic members. You may be surprised to learn how many are business owners who may also be willing to help the credit union better understand their needs.

    As your research is underway, begin to build relationships with local organizations that already serve Hispanic entrepreneurs and small businesses, such as Hispanic chambers of commerce. Your credit union can work in conjunction with these organizations to provide a much-needed service, connect with the community and begin to build trust.

    Once you have a better understanding of the make-up, needs and behaviors of the local Hispanic business community, come back to your own capabilities. Evaluate your existing business and consumer service offerings to see where they fall short or how they may be adapted to the Hispanic business owner. Evolving your products, rather than expecting Hispanic members to adapt to them, is critical for success with this market.

    Javier Palomarez, president and CEO of the United States Hispanic Chamber of Commerce, says Hispanic businesses are first and foremost American businesses. “Every tax bill we pay, every job we create, every product we manufacture and every service we provide goes to benefit our nation’s economy,” he wrote. And those businesses will do so to the tune of $660 billion this year.

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    Knocking Over the First Domino with Great Service to Hispanic Millennials

    Posted by on December 16, 2015

    Kenia Calderon

    Kenia Calderon

    Relationship marketing, the pursuit of long-term engagement rather than short-term sales, has been called a game-changing marketing trend for 2016. Credit union leaders may find that a bit amusing, given “relationship marketing” is less of a trend, more a way of life, within the movement.

    What more credit unions are learning, however, is this deeply rooted competency for relationship building is better suited to some consumer segments than to others. As certain financial products become commodities for some individuals, they remain coveted, potentially life-changing, services for others.

    Take Kenia Calderon, for example. The 21-year-old El Salvador native has been in the U.S. for nearly 10 years. After what she describes as a bad experience with a major U.S. bank, she watched her parents pull out of the U.S. financial system altogether. Today, the double-major university student and president of her school’s Latino student group manages her entire family’s finances with the help of Village Credit Union in Des Moines, Iowa.

    “Serving the Latino community is hot these days,” said Calderon. “But for most big companies, that’s because they see dollar signs. My credit union put humanity ahead of profit. By helping me and my family better our lives, they have impacted generations to come. It’s a domino effect. In my family alone, we will have three college graduates leaving school debt-free thanks to the help of Village Credit Union.”

    Earning the business of more Millennials like Calderon – the second largest Hispanic demographic in the country – may require a new way of thinking for U.S. industry. For credit unions, though, it’s about getting back to the basics of building mutually beneficial relationships, albeit with a twist.

    Young Hispanic consumers have some unique, and somewhat conflicting, tastes. For instance:

    • While face-to-face is important, digital access is critical.
    • While they speak Spanish, they also speak English.
    • While savings and loans are huge, everyday services are just as vital.

    For more on each of the above, see our article in the December issue of Credit Union Business.

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