Every new year brings new opportunities to create healthier lifestyle habits, establish goals and objectives for the coming year, and in some ways start life over. Unfortunately, most new year’s resolutions focus on physical health, rather than fiscal health. That’s an oversight few credit union members – or anyone, for that matter – can afford on their journey to long-term financial well-being.
Now is an excellent time for credit unions to help their Hispanic members improve their financial practices, foster wise money spending decisions and more effectively manage their own financial futures.
The first step is to help Hispanic members identify their financial goals for the new year. Here are a few questions credit unions can ask their members to help them chart the right course.
Is there anything you would like to stop or start doing financially? It is a simple yet powerful question that could make a member ponder. It is worth asking.
Asking these and other questions can be important in helping members set the course for a brighter financial future, one that might even give them the opportunity to take that long awaited vacation they have always wanted or make a larger purchase of something they need. It is difficult for credit unions or their members to understand or know how to reach their financial goals until those questions are answered.Leave a comment
This past year Coopera has had the opportunity to help multiple credit unions better serve their Hispanic constituents. We learned a lot in 2018, and we’re happy to see that both the credit unions and their Hispanic members benefited from our joint efforts.
Several critical trends emerged from among those 2018 successes. Here are three we believe have widespread application to credit unions across the nation.
1. Staff training opportunities have enabled more credit unions to share Hispanic market service and growth insights with employees at all levels.
Helping credit union staff – both new and experienced – understand the cultural nuances of serving all member segments has become an important growth strategy. In best-practice credit unions, cultural awareness training is no less important than financial and technological training, and it’s something we hope more credit unions embrace in the future.
Coopera is able to measure and score a credit union’s cultural sensitivity, enabling it to better communicate with Hispanic members. From that score, the credit union can adjust its operational thinking and practices so more Hispanic members feel understood and appreciated by the institution. Increased understanding, in turn, results in more and better service to those members, eventually leading to greater product engagement by Hispanic members in those credit unions.
2. Increased ITIN lending by credit unions both new to and experienced with such loans has resulted in larger loan portfolios and better member service.
Loans made using Individual Tax Identifications Numbers (ITINs) rather than Social Security numbers to verify identity are still new to many credit unions. But credit unions that understand the nuances of using this form of legal ID have discovered new and often untapped sources of loan demand and revenue. From payday loan alternatives to credit-builder loans to auto loans and even mortgages, the demand and opportunities for ITIN loans are helping both borrowers and lenders thrive.
Produced with the help of partner organizations, Coopera offers access to an ITIN lending guide that provides both recommendations and resources for such a program’s application and use. Access the guide free of charge here: https://filene.org/do-something/programs/non-citizen-lending.
While a program like ITIN lending is an opportunity to engage Hispanic members, credit unions offering only the foundation of such financial access without building a framework for its Hispanic members’ financial growth run the risk of losing those members to the competition. Coopera offers credit unions assistance in creating holistic solutions to help Hispanic members financially grow with the institution.
3. State credit union leagues are using Coopera’s solutions so that their member institutions increase membership to include Hispanics.
Leagues nationwide recognize their duty in providing tools for member credit unions grow, and more of them are finding greater growth by attracting Hispanic members by clearly showing the philosophical imperative and business case for it. As one of the fastest growing demographic groups in the U.S., Hispanics present significant opportunities for credit unions nationwide.
One of Coopera’s partner leagues, for example, has a goal of helping its credit unions reach 1 million members within the state. To assist them with this goal, Coopera provides “opportunity maps” identifying Hispanic groups for the league’s credit unions, enabling them to target, attract and serve members about whom they otherwise might not have known. We’re doing the same thing with other leagues as well, and look forward to future partnerships on projects such as this.
The initiatives outlined above illustrate how Coopera has actively helped the credit union movement reach out and better serve Hispanics throughout this past year. Coopera will continue these initiatives and actively exploring how to integrate more solutions and insights to reach underserved in the years to come.
We look forward to having you with us on the journey in the New Year!Leave a comment