Now Is the Time to Make the Investment in Service to ImmigrantsPosted by Miriam De Dios Woodward on June 18, 2013
Much of this is due to the Hispanic culture’s reliance on advice from friends and family. When one organization serves a Hispanic customer well, chances are that business will grow quickly from referrals. As well, entirely new providers have come on the scene, making competition for the critical Hispanic market even tougher. While tax providers offering refund anticipation loans are nothing new, they are now offering loans in the form of prepaid cards, giving underserved Hispanic consumers access to the safety and convenience of plastic. The popularity of prepaid cards with underserved consumers has sparked tremendous growth in the prepaid sector with Walmart leading the pack and Hispanic focused companies like Telemundo and Univision also getting in on the game. Because 91 percent of those identified as underbanked have mobile phones and 57 percent have smartphones, mobile services for this group are also springing up rapidly. One example is m-Via’s Boom service, a P2P mobile payments service targeted to the underbanked. Fortunately, credit unions have several innate qualities that help them compete against long-time and new-comer financial services providers. The ability to offer the same products and Where you start depends, of course, on the special opportunities unique to the immigrants in your local communities. By performing a comprehensive market analysis, credit unions can better define their target market, understand the competitive factors that will shape their own strategies and begin to see how service to immigrant populations can align with their overall growth strategies. This blog is an excerpt from the guest opinion article “Immigration Reform May Prompt Member Push” recently published by the Credit Union Times. Leave a commentHow the Immigration Reform Bill Will Impact Credit UnionsPosted by Miriam De Dios Woodward on June 11, 2013
If instituted, the proposed path to citizenship included in the bill will bring about an increased need for assistance to an estimated 11 million undocumented immigrants in the country today. With identification and documentation barriers removed, these aspiring U.S. citizens will begin the search for trusted providers of everything from English as a second language courses to home sales. Of the estimated 11 million undocumented immigrants in the country today, many are Hispanic. According to the Pew Hispanic Center, nearly 60% are of Mexican origin, making outreach to this particular group very important for credit unions bracing for the impact of immigration reform. Beyond its sheer size, the Hispanic market’s youth has made service to this group a sound investment for credit unions looking to grow while lowering the average age of membership. Credit unions that have been serving immigrants well and building trust in the communities they serve, will have a definite leg up when these new business opportunities come to fruition. That said, it’s not too late to begin following in these progressive credit unions’ footsteps. And for some credit unions, particularly those in gateway states, it’s not only a good idea. It’s critical for leadership to begin formulating an outreach strategy today — one that will put them in touch with these potential new members now. The introduction of immigration reform bills by our legislators shines a bright light on what some credit unions have already learned: Investing in service to the critical Hispanic market is vital to future growth. This blog is an excerpt from the guest opinion article “Immigration Reform May Prompt Member Push” recently published by the Credit Union Times. Leave a commentTarget Market: Underserved HispanicsPosted by AnnaPeña on June 4, 2013
There are nearly 7 million Hispanic households in the U.S. that are unbanked and underserved, which means that about one out of every two U.S. Hispanics is unbanked or underserved. The most common reasons why households (regardless of ethnicity) report they do not have bank accounts are that they feel they do not have enough money for an account or they do not need or want one. Yet, nearly 70 percent of unbanked households have used an alternative financial service provider in the last year to conduct financial transactions outside of a traditional financial institution such as cash their check or buy money orders. For the credit union that supports such an individual through a difficult time, the potential for life-long loyalty is huge. Underserved Hispanics, in particular, tend to have large households and live in tight-knit communities, creating more word-of-mouth opportunities for the credit union that serves them well. The Hispanic culture relies heavily on the experiences of friends and family members to guide decisions and choices. So when a credit union serves one Hispanic member well and provides financial information and guidance to that member, the cooperative can receive several more opportunities to help friends or family members. For many credit unions, the best marketing tactics possible for reaching the unbanked will be financial education outreach and word-of-mouth referrals. With these methods, the credit union can begin to build awareness about the benefits of depositing and borrowing from a federally insured financial cooperative, as well as the credit union difference. 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 |
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