Financial inclusivity as a growth strategy is quickly gaining traction in the community banking space. In fact, the trend recently garnered the attention of the hugely popular, national financial advice site Nerd Wallet.
Writer Juan Castillo reported:
Hispanics in the U.S. have long been known as “the sleeping giant” for their potential as a substantial and still-growing voting bloc. Now, some in the financial services industry are getting serious about targeting Hispanics — and Hispanic millennials in particular — as a prime source for market growth.
As the concept of reaching out to fast-growing markets like the Hispanic segment earns wider interest, it will be important for financial institutions to adhere to the fundamentals before going “all-in.” This will prevent staff from viewing the strategy as a fad and help them to see it as a part of the financial institution’s long-term plan.
There are essential first steps that must be taken on the front-end of any financial inclusion strategy, particularly when the credit union or community bank is targeting a segment of people new to mainstream banking.
Step One: Build the Right Organizational Mentality
Financial institution leaders must communicate the philosophical and business imperatives of serving a new market to build buy-in at all levels of the organization from frontline staff and management to board members and C-suite executives.
Step Two: Adapt to the Market
Do not expect the people you want to serve to adapt to you. Develop a comprehensive plan for how you will improve processes and products, as well as train employees and prepare your branches.
Step Three: Create a Strategic Plan
Define your opportunities and challenges with an eye to your specific local communities. What does the market look like in your city? Are there nuances across age, geography, acculturation factors? Create a roadmap encompassing groundwork, personnel training, product adaptation/development, processes and marketing. Set ongoing measurements and continue to nurture that all-important staff buy-in with frequent updates on milestones and wins.Leave a comment