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 adjust for service to this critical consumer segment. Part of the draw to serving Hispanic consumers – particularly for credit unions who struggle with aging memberships – is the unmatched youth of the U.S. Hispanic market.
For this reason, targeting “second-generation,” or children of Hispanic immigrants, is a smart strategy for credit union leaders who want to introduce their cooperative to the next generation of financial-service consumers. Beyond this target market’s youth, second-generation Hispanics generally have higher incomes, more degrees and own more homes than their parents, making them attractive financial clients. In fact, 91 percent of Hispanic youth agreed with this statement: “No matter how poor you start out in the United States, with hard work you can achieve success.”
The possibilities for credit unions to act as a partner in the pursuit of this belief is equally as strong, as many young Hispanic members will have part-time jobs with income streams at younger ages. Couple this with a need for education, lifestyle and auto loans, and the value of a credit union to a young Hispanic American becomes clear. If established early, that relationship is likely to grow over time, as members enter adulthood, their careers grow and they begin to upgrade vehicles and purchase homes.
Communicating this ability and willingness to help young adults reach their financial goals will be less complicated with second-generation Hispanic consumers, as 93 percent report they speak English either very well or well. That said, this audience is typically bilingual, with 8 in 10 second-generation Hispanics reporting they converse either very or pretty well in Spanish.
Understanding which segment of the Hispanic youth population best aligns with a credit union’s value proposition and strategic growth goals is an important first step to the development of a plan to serve young Hispanics.
This blog is an excerpt from the new Coopera white paper, “The Multifaceted Hispanic Market,” available for download at http://tinyurl.com/c8jwf45.Leave a comment