Connect With Hispanic Members and Staff During National Hispanic Heritage MonthPosted by Miriam De Dios Woodward on September 10, 2018 National Hispanic Heritage Month (HHM), a celebration of Hispanic and Latino culture, heritage and contributions, begins September 15 and continues through October 15 each year. The celebration starts on September 15 because on that day in 1821, five Latin American countries declared their independence: Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. In addition, Mexico, Chile and Belize celebrate their independence days on September 16, September 18 and September 21, respectively. HHM presents a great opportunity for credit unions to connect with and support their Hispanic members and staff. Here are a few examples: • Altura Credit Union in Riverside, Calif., recognizes HHM by promoting a variety of community festivals, contest and events on its website. The credit union also made a $600,000 pledge to the Cheech Marin Center for Chicano Art, Culture & Industry at the Riverside Art Museum earlier this year. Another way to celebrate HHM is to create a way for your Hispanic staff and members to share stories about their favorite traditions from their countries of origin. Along those lines, we thought it would be fun to share a bit about where the Coopera team came from and our favorite traditions from those countries. Kenia Calderon, Coopera’s Client Relationship Consultant What is your country of origin? What is your favorite tradition? On September 15, K-12 students participate in the Independence Day marches/parades that take place across the country. People line up along the sidewalks to watch the parade. Each school has its own theme, uniform, music and acts. My siblings and I participated every year. The first time I participated, I was in charge of holding our national flower. The following year, I was a tambourine player. The marches typically take place downtown, and we probably marched more than five miles. What do you enjoy most about HHM? Tania Perez, Coopera’s Client Support Specialist What is your country of origin? What is your favorite tradition? My father is from Aguascalientes, Mexico, host of the San Marcos National Fair. It started off as a cattle and harvest fair and is now an international event. There are many exhibitions to enjoy, including bullfighting, which has an important history in the city of Aguascalientes. The fair takes place in April and May. My family who owns a taco business in the city says that many businesses close earlier in the day or close for a couple days to celebrate the fair. What do you enjoy most about HHM? Victor Miguel Corro, Coopera’s Client Relations Director What is your country of origin? What is your favorite tradition? During the four days prior to the start of Lent, the Catholic holiday, the whole country comes to a complete stop for Los Carnavales. In many towns, large and small, there is is a full-throttle celebration with parades, floats, queens, music, dancing and costumes. Festivities include both traditional Spanish and Panamanian customs. The most distinct and fun tradition is “La Mojadera” – a water hose soak. Water tank trucks soak the crowd for hours, along with loud music, entertainment and plenty of Seco, a sugarcane-based spirit and Panama’s national drink. The tradition is undoubtedly inspired by the hot tropical weather. La Mojadera goes on until the early hours of the afternoon, when the crowds go home to take a short nap before preparing to dance the night away and start all over the next day. Miriam De Dios Woodward, Coopera’s CEO What is your country of origin? What is your favorite tradition? As the religious celebration draws to a close on January 12, a special pilgrimage is held to welcome back “los hijos ausentes” or the “absent children” who live away from town. That night, “la farola,” a cart with a lamp post symbolizing an old way of making public announcements is pushed down the streets of town with a live band and processional of people, announcing the start of the fair. The fair activities that follow include bull riding, concerts, enjoying a variety of food stands, carnival games, parades, traditional dances and the crowning of the fair queen. Las Fiestas represent a time for family and friends to gather from near and far to share in the tradition that was started many generations ago. To this day, my family continues the pilgrimage to El Grullo during the time of Las Fiestas. What do you enjoy most about HHM? As you can see, Latin American countries are rich with culture and traditions. Finding ways to celebrate HHM and giving your members and staff an opportunity to share stories from their countries of origin are great ways to learn from each other to build a more inclusive community. Leave a commentHispanics Are Driving U.S. Economic Growth. Here’s Why Credit Unions Should Care.Posted by Miriam De Dios Woodward on July 2, 2018
• At 2.9 percent, the U.S. Hispanic GDP experienced the third-highest growth rate in the world, behind only China and India. It was nearly 70-percent higher than the non-Hispanic U.S. GDP growth rate of 1.7 percent. • If it were an independent country, the U.S. Hispanic GDP would be the seventh largest in the world, larger than the GDP of India, Italy, Brazil or Canada. • While the non-Hispanic U.S. workforce shrank by about 4,000 workers, the Hispanic U.S. workforce grew by nearly 2.5 million, making possible an overall increase of 2.4 million in the U.S. workforce, ages 24 to 64. • The U.S. Hispanic college graduate population, ages 20 to 24, grew by 40.6 percent, compared to 13.6 percent for the non-Hispanic population in the same category. • As young Hispanics enter the workforce and older non-Hispanics leave it, the Hispanic GDP will account for an increasing portion of the total U.S. GDP growth, projected to be 24.4 percent of total U.S. GDP growth by 2020. What do these stats mean for credit unions? • As the Hispanic community’s impact on the U.S. economy continues to grow, so will its need for financial services. There’s never been a better time for credit unions to start (or grow) a Hispanic membership growth strategy. Those that don’t will find it increasingly difficult to grow their total membership, deposits and loan balances. • Young Hispanics will be an increasingly important pool of talent as credit unions grow and hire new employees. As college-educated Hispanics continue to enter the workforce at a faster rate than non-Hispanics, it’s important for credit unions to review their recruiting and hiring processes to ensure they are appealing to Hispanics. • Dispelling myths about Hispanics is a joint effort. Despite the above statistics, some segments of the U.S. population are not aware of the essential role Hispanics play in the success of the domestic economy. Consider ways you might partner with organizations and Hispanic leaders in your community to help tell the story. In short, the U.S. Hispanic community is growing in number, spending power, education and – for growth-minded credit unions – opportunity. Leave a comment5 Financial Preferences of Multicultural ConsumersPosted by Miriam De Dios Woodward on June 4, 2018
Multicultural consumers have significant buying power. Over the past five years, multicultural consumer groups have accounted for 100 percent of U.S. population growth and 61 percent of credit union growth. The annual spending growth rate for Hispanics is 4.1 percent, compared to 1.4 percent for Whites. What it means for credit unions: Credit unions desiring to grow their memberships, assets and loan balances should place a strategic focus on their outreach efforts to Hispanics and other multicultural consumer groups. Hispanic appreciation for apps over-indexes other groups. Hispanic consumers are almost two times more likely than Whites to research financial products and services using mobile apps. Additionally, 17 percent of Hispanics reported applying for financial accounts and products through an app, compared to only 9 percent of Whites. What it means for credit unions: To be relevant to Hispanic and other multicultural consumers, credit unions should be investing in mobile strategies. These cooperatives should ensure their mobile apps have a Spanish language option and the experiences are culturally relevant to Hispanic consumers. Business loans are a desired product. Hispanics are nine times more likely than Whites to take out a small business loan in the next five years. What it means for credit unions: Invest in products and resources to help Hispanic entrepreneurs, such as small business-friendly loans, microloans and small-business financial education. Also, consider partnering with organizations that offer small business assistance, such as local Hispanic chambers of commerce and small business incubators. Hispanics prioritize ease of use. Twenty-three percent of Hispanics look for convenience in financial products and services, even if it means higher rates or fees, compared to only 9 percent of Whites. Flexible payment schedules and speed of lending are also more important to Hispanics than other groups. What it means for credit unions: No two consumers are exactly alike. Providing a range of product options and fee structures will help you be relevant to a wider range of consumer segments. Offering instant online loan approvals is one way to meet a need for many Hispanic consumers. Hispanic consumers tend to worry about finances. Every expense category studied by CUNA Mutual causes Hispanic consumers concern — sometimes up to 20 percent more than other consumer groups. At the same time, Hispanics tend to have a stronger sense of generosity and community than other consumer groups. What it means for credit unions: Think about ways to help relieve concerns for Hispanic consumers through relevant financial education and resources. Also, be sure to educate local consumers on the credit union philosophy of “people helping people,” and share stories of how your credit union and members are improving the lives of individuals and families in your community. As you apply these findings to your credit union’s Hispanic outreach strategies, be careful not to over-simplify the data. “When examining the research findings, it’s important to remember a person is made up of many unique cultural aspects,” said Opal Tomashevska, manager, multicultural business strategy, CUNA Mutual Group. “Be careful not to over-generalize or create stereotypes from this information and apply it to all members of a certain group. The data shows trends and significant differences but does not attempt to speak for every individual.” Leave a commentHispanic Women Have a Strong Desire to Save for RetirementPosted by Miriam De Dios Woodward on May 23, 2018
1. Hispanic women have a huge appetite for financial education and a strong desire to save 2. Their savings could provide a critical safety net to America’s largest minority group. “This study demonstrates that if financial information is communicated simply and respectfully, and in culturally and linguistically competent ways, Latinas, especially, will listen,” said Karen Richman, Ph.D., the principal investigator of the study, a collaboration between the National Endowment for Financial Education and the University of Notre Dame. Reasons for Low Retirement Savings Despite a desire to save, low earnings mean Hispanic women have much lower retirement account balances than any comparable demographic, the study found. Employment paths have a lot to do with these outcomes. According to the study, Hispanics switch jobs more frequently than other demographics. What’s more, they tend to accept positions that do not provide retirement savings benefits. The research went on to show that Hispanics with employer-sponsored retirement plans are 50 percent more likely than whites to make hardship withdrawals. Hispanic women are more likely than Hispanic men to liquidate pensions with a lump-sum payment or to spend rather than reinvest their savings when they change jobs. Additionally, Hispanic women tend to see retirement accounts as a source of liquidity. They may take loans and early withdrawals, often to help others, and they end up paying large penalties. How Credit Unions Can Help Below are a few key takeaways from the study and what they mean for credit unions. • Hispanics have the highest labor participation, and yet the lowest retirement security. Hispanic women would benefit from workplace financial education, particularly during job transitions as they are deciding what to do with retirement accounts. Credit unions can provide financial education, as well as investment and savings products in a way that’s relevant to this influential and growing audience. • Hispanic women tend to be the administrators of family finances. The female head of the family often makes tough decisions without knowing all the options. Credit unions can address Hispanic women’s appetite for financial education and desire to save through direct outreach, relationship building and financial education opportunities. A great way to gain a better perspective on what Hispanic women need is through the creation of a Latina advisory group. • Hispanic men and women are equally likely to participate in collective financial practices based on “confianza,” or “mutual trust.” Credit unions should work to develop relationships with Hispanics based on trust. They should position themselves as a dependable resource for the community through product accessibility, bilingual staff and community investment. As this study reveals, a gap exists for Hispanic women in terms of saving for retirement. Credit unions, with their financial expertise and their people helping people philosophy, are well positioned to address this gap. Leave a commentGet to Know Víctor Miguel CorroPosted by Miriam De Dios Woodward on April 16, 2018 Continuing our get-to-know series, we’d like to introduce you to Víctor Miguel Corro, who joined the Coopera team earlier this year as client relations director. How did you end up working for a company focused on helping credit unions serve the Hispanic market? I’m no stranger to the credit union world, and in a career-transition moment, things aligned to give me this great opportunity. It is a great fit personally, as I am a first-generation immigrant. I came from Panama and now live in Wisconsin. I remember coming to the U.S. and facing everyday struggles. Everything from trying to get a haircut to adjusting to the climate was difficult. I’d never experienced a day below 75 degrees in my life and now I was living in Wisconsin. Talk about building character! What gets you out of bed in the morning? Knowing I support my family though a career in a mission-driven industry that ultimately seeks to improve lives. When I wake up, I see that as one more day, one more chance to help somebody. What does your typical day look like? My day consists of helping Coopera’s clients reach more people who do not know the joy of being part of a credit union. I get to interact with clients and work with our wonderful team to help those clients be the financial entity of choice for the Hispanic community. What’s the best business advice you’ve ever received? Be the proverbial bridge. That means working to connect people in spite of their background and differences. There is always common ground to be found, and that will push us all forward together. What excites you the most about the future of financial services in the Hispanic market? There is a growing understanding among credit unions that reaching an untapped market makes sense philosophically, and it also presents a strong business case. In my recent conversations with industry leaders, I have sensed the enthusiasm and a natural inclination to want to reach out and serve. The integration of technology is also a very exciting prospect for this market. Where do you go/what do you do to get inspiration? A hammock in Panama does the trick every time! But when that’s not available, it’s a long bike ride or an old song. What is something unique about you most people wouldn’t know? My parents started a credit union back in my hometown in Panama. I was once a fifth-grade homeroom teacher. I have visited 89 countries (and not just the airport!). I have met six sitting heads of state in as many countries. Leave a commentAn Unscoreable Consumer Could Become Your Next Great MemberPosted by Miriam De Dios Woodward on March 6, 2018
At the same time, acquiring new members is becoming increasingly difficult for credit unions. Competition and financial consumer expectations have never been more complex and fast-moving. What if there was a way for credit unions to avoid turning away “unscoreable” consumers for loans and other services? What if there was a way to welcome them without increasing a cooperative’s risk profile? No Credit Does Not Mean Bad Credit Just because a consumer is unscoreable by most traditional credit scoring models doesn’t mean he or she won’t be able to pay back a loan. Several alternative models available today can help a lender evaluate a consumer’s ability to repay. Below are some examples, along with the types of data they incorporate into their models: eCredable – Bills, such as rent, utilities, mobile phone, cable/satellite TV and insurance Cignifi – Mobile phone behavior data First Access – Prepaid mobile-phone payment histories TrustingSocial – Social, web and mobile data Kabbage – e-commerce histories from sites like Amazon Experian’s Emerging Credit Score – Internet and direct-marketing purchases, property and asset records and telecommunications and utility data TransUnion CreditVision Link – Property tax records and checking/debit account records LexisNexis RiskView – Residential stability, asset ownership, derogatory status, life-stage analysis One thing all these companies have in common: They’re using big data to create better outcomes for consumers and meaningful value for lenders. And credit unions have the opportunity to do so, as well. Alternative sources of consumer data, such as utility records, cell phone payments, medical payments, insurance payments, remittance receipts, direct deposit histories and more, can be used to build better risk models. Armed with this information – and with the proper programs in place to ensure compliance with regulatory requirements and privacy laws – credit unions can continue making responsible lending decisions while better serving the underserved. How One Organization Successfully Uses Alternative Credit Scoring Kinecta Federal Credit Union uses an alternative data score from LexisNexis known as Riskview to assess creditworthiness for traditionally unscoreable borrowers. The model factors in data from sources like utility bills, public records, address and employment stability, among many others alternative data elements. The result is a Fair Credit Reporting Act (FCRA) regulated score. By using nontraditional credit verification methods, Kinecta is able to approve more than 60 percent of the applications it receives. Since 2014, Kinecta has made about 20,000 loans for more than $30 million.” How Alternative Credit Scoring Fits the Credit Union Philosophy Credit unions exist to help people, not make a profit. Their goal is to serve all members well, including those of modest means – the very people most likely to be unscoreable by traditional credit scoring models. Many of these consumers fall into one or more of the following segments: • Unbanked/underbanked Alternative credit scoring provides credit access to consumers who may otherwise be turned down for a loan or forced to turn to a predatory lender. Using payment history and other data sources to evaluate a consumer’s creditworthiness is an excellent example of “people helping people” – one that benefits both consumers and credit unions alike. Leave a commentHow JetStream FCU Sent an Important Message to a Hispanic High School StudentPosted by Miriam De Dios Woodward on February 19, 2018 In September 2017, we announced seven Juntos Avanzamos designated credit unions had received the 2017 Warren Morrow Hispanic Growth Fund Grant to continue their Hispanic outreach and community impact efforts. Over the next few months, we’ll be checking in with each of the credit unions and sharing updates on their progress. First up is JetStream Federal Credit Union in Miami Lakes, Florida. JetStream partnered with a local high school to select a deserving scholarship recipient. To qualify, the student needed to be a member of a Hispanic, low-income family and meet the following criteria: a 3.7 minimum GPA, a college in mind and an area of interest in business or finance. As a first step, JetStream chose Barbara Goleman Senior High as a partner. “We chose this high school because of its location, as well as its student body makeup,” said Vanessa Miranda, manager of HR and community outreach for JetStream. “The Barbara Goleman student makeup is 84 percent Hispanic.” ![]() (Left to right) JetStream FCU CEO Jeanne Kucey, Scholarship Winner Gabriel Hernandez, JetStream HR Manager Vanessa Miranda JetStream received many qualified applications, which included essay responses. With the help of several teachers and JetStream staff, they were able to select the winner: Gabriel Hernandez, a senior who will begin an accounting program at Florida International University in the fall. “Gabriel’s essay demonstrated his devotion to his academics,” said Miranda. “His long list of extra-curricular activities, as well as his academic achievements, truly stuck out from the rest. He has been an honors AP student since freshman year and has achieved a 4.9 weighted GPA. In addition, he is the captain of the soccer team and part of The National Honors Society.” Something else Jetstream says made Hernandez stand out was a strong commitment to his community. He has tutored immigrant students at a local high school, as well as volunteered his time to feed the hungry. Long-term, Hernandez plans to be an accountant or financial advisor. “I will be working with people and matching them to financial programs that will assist with their future,” Gabriel wrote in his essay. “Like JetStream’s motto, I believe that people matter most. I think that I could be an asset for both the consumer and the financial institution that hires me in the future.” In his essay, Hernandez also shared that he is concerned about how he will pay for college tuition and does not want to create further financial burdens for his parents. “We are very thankful that the Warren Morrow Hispanic Growth Fund Grant was awarded to JetStream, which allowed us to give a most valuable gift, the gift of education, to this deserving Hispanic student,” said Miranda. “I know this young man will go on to do amazing things. We feel honored that we were given the chance through this grant to aid him in achieving his goals and helping him see that the American dream is possible for everyone.” Hernandez closed his essay by writing, “I know that I will succeed in college, but this scholarship will show me that others believe in me, too.” Leave a comment |
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