Get 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?  Victor after a long hike at Macchu Picchu in Peru 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?  Victor at a Florida credit union alongside a delegation from Brazil 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?  Victor with Oscar Arias, then president of Costa Rica 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 commentWhat These Three Credit Unions Know about YouTubePosted by Miriam De Dios Woodward on February 6, 2018
“Hispanic consumers spend a disproportionate amount of their day on the phone—most notably, streaming videos,” write the report’s authors. “Mobile video and, in particular, YouTube, are at the heart of Hispanic consumers. In response, brands looking to win over this mobile-dominant consumer should position the phone, and video, at the epicenter of their marketing plan.” Credit unions looking to develop and deepen relationships with this young, fast-growing and often underserved segment, should pay close attention to these findings, as well as to how some of their colleagues are having success with video. Below are three ways credit unions have integrated YouTube into their Hispanic marketing and engagement efforts. Financial Education YouTube is a great channel for educating consumers on financial wellness topics. Here are just a few ideas: • The credit union difference
Member Testimonials Consumers – particularly those unfamiliar or uncomfortable with traditional financial institutions – want to see certain things from any credit union attempting to make a connection with them. Employees and members who look like them, communications that speak to them and experiences that feel real to them are crucial to encouraging underserved individuals to give credit union membership real consideration. Videos of real members sharing why they chose the credit union and how it’s impacted them can benefit the credit union in many ways, including: • Building credibility and trust
Advertising Videos Because it’s free to host videos on YouTube, it can offer a much higher ROI than television advertising. Plus, a Google-commissioned Nielsen study found more Hispanics watch YouTube than any cable network in the U.S. Posting advertising videos on YouTube can help your credit union build brand awareness and share your commitment to the community.
When launching a YouTube strategy, it’s important to continually go back to your credit union’s strategic plan to ensure each of your video tactics aligns with your business goals. If you have goals to engage Hispanic consumers, educate your community or promote the benefits of membership, you may find YouTube the perfect place to be. Leave a comment5 Trends Driving Credit Union Investment in Underserved MarketsPosted by Miriam De Dios Woodward on January 8, 2018
Here are some of the 2017 study’s highlights: • Underserved consumers spent $173 billion in fees and interest to use $1.94 trillion in financial services in 2016. • Spending by financially underserved consumers increased 6.6 percent, or $10.7 billion, in 2016. • The market has grown an average of four percent each year since 2009. The report also identifies five trends driving opportunities for financial services providers. What follows are a few ways credit unions may consider leveraging these trends to improve the financial lives of underserved consumers in their communities. Credit Cards How Credit Unions Can Help Frequent Overdrafts How Credit Unions Can Help Credit Pricing How Credit Unions Can Help Small Business Finance How Credit Unions Can Help Fintech Solutions How Credit Unions Can Help Clearly, there are many ways a credit union may be able to leverage the trends driving opportunities in underserved markets. Before embarking on a new initiative, however, a credit union should ensure the strategy aligns with its mission and target market. Doing it right requires a decent amount of work, and importantly, buy-in from executives and the board. But for credit unions looking to tap into the huge potential of the underserved opportunity and improve the financial lives of more consumers, it’s likely worth the effort. Leave a commentConnecting with Hispanics in Your Community This Holiday SeasonPosted by Miriam De Dios Woodward on December 2, 2017 As in most cultures, shopping and gift-giving are important parts of the holiday season for many Hispanics. According to recent research by ThinkNow Retail, 33 percent of Hispanics say they will be spending more this holiday season than they did last year, compared to 30 percent across all markets. Some other interesting findings from the study include: –About 41 percent of Hispanics plan to pay for most of their holiday purchases with a debit card, higher than any other market. Cash and credit tie for second among Hispanics at 24 percent each. –Smartphones will be the most commonly used device for making online holiday purchases among Hispanics. About 62 percent of Hispanics will use a smartphone, compared to 50 percent across all markets. Laptops, on the other hand, will be the device used the most overall across all markets. –On average, Hispanics plan to buy about 35 percent of their holiday purchases online and about 46 percent in-store. For credit unions serving Hispanic communities, it’s important to understand holiday purchasing behaviors to better tailor marketing offers, as well as products and services. Even more important, however, is the understanding of specific motivations. That level of intelligence allows your teams to create a deeper connection between the credit union and its community. In the Hispanic culture, most holidays have their origins in religion, specifically Christianity. Approximately 77 percent of Hispanics are Christians, with the overwhelming majority identifying as Catholic. As such, Christmas is one of the most popular Hispanic holidays, and there are many traditions associated with it. Here are a few favorites: Tamale-making parties – Tamales are holiday staples in many parts of Latin America. Because making tamales is a time-consuming task, many people participate in tamaladas, where participants bond over recipe swaps and bulk prep of the holiday favorite. Christmas Eve feast – Nochebuena is a very special celebration shared with family and close friends on Christmas Eve. Food plays an important role during this celebration. Each country, and even certain regions within a specific Latin American country, has a special dish. Re-enactments and plays – Posadas are re-enactments of Mary and Joseph looking for a place to stay before Jesus was born. Many posadas start at church services. Las pastorelas are plays that retell the Christmas story. It’s clear religion and family are at the heart of the Hispanic holiday experience. Whether it’s partnering with a local community center or church to support a tamalada or posada, having a drawing for a pork roast, a common centerpiece of the Nochebuena meal, or simply sharing holiday family fun ideas on your website and social media channels, there are a variety of ways credit unions can connect with Hispanics in their communities this holiday season. Leave a comment4 Credit Unions Apply Grant Funds to People, Partners & EducationPosted by Miriam De Dios Woodward on November 27, 2017 In October, I shared the plans of three Warren Morrow Hispanic Growth Fund Grant recipients specific to how they will use the funds earned. This post will take a look at four additional recipients of the grant, which is made possible by Coopera, CUNA and the National Credit Union Foundation. Each of the recipients is a Juntos Avanzamos-designated cooperative, a program taken to the national stage by the Federation. Ascentra Credit Union “We have been building and evolving our program to accommodate our successful growth of Hispanic members,” said Alvaro Macias, Ascentra AVP of community development. “We also have an internal group of bilingual staff that meets 3-4 times a year and a community development advisory group that evolved out of our Latino Outreach Advisory Group. Today, we are positioning the credit union to build community partnerships that are mutually beneficial to members, other organizations and long-term sustainability of the credit union.”
“The Warren Morrow Grant will help us close the outreach gap by supplementing our budget for providing financial education to the Spanish-speaking community,” said SCCCU President/CEO Beth Carr. “Additionally, more nonprofits serving the Hispanic community here are being required by grant funders to include financial literacy and training in their grant proposals and programs. As a Juntos Avanzamos-certified credit union, we feel it is our responsibility to assist our community non-profits.”
“This enhances our credit union’s current Hispanic growth strategy in a couple ways,” said DC FCU President/CEO Carla Decker. “First, it grows our staff’s professional competency and serves to retain talent. Second, the training will add another resource to a budding partnership opportunity with the potential for tremendous impact and further expansion of DGEFCU’s footprint.”
“At JetStream, we feel the need to help the professionals of tomorrow by providing them with the tools they need today for a better future,” said Vanessa Miranda, manager of HR and community outreach for JetStream. “The grant will go directly into the hands of a deserving local Hispanic low-income student.” This collective of credit unions is proof the industry sees the Hispanic community as important to the future of the movement. Kudos to each of you for the continued effort to reach and serve this influential and growing segment.
Get to Know Kenia CalderonPosted by CCBlogAdmin on November 6, 2017 Continuing our get-to-know series, this blog post features Kenia Calderon, client relations associate for Coopera. How did you end up working for Coopera?
I reached out to Miriam because I was interested in learning more about Coopera and her career path. I was a sophomore in college, unsure of what I wanted to do after graduation, and meeting Miriam gave me hope of someday finding a job that would make a positive impact in the Hispanic community. She was looking for a summer intern at the time, and I applied. Fortunately, I was offered the internship, and I’m still here, now serving as a client relations associate! What does your typical day look like? I work to ensure we are exceeding our partners’ and our own expectations. Assisting our clients through their Hispanic Growth Strategy is by far my favorite part. This comes in different forms, such as helping them find local resources, sharing my personal experiences and expertise during a consulting meeting or working together to create new staff training materials. I am constantly learning about our clients’ needs, objectives and culture. My daily goal is to help our clients get a step closer to becoming the preferred financial service provider for their local Hispanic community.
“It’s a marathon, not a sprint.” This is a great reminder for someone like me who likes to be challenged and embraces change. My mind is always running too fast for my body to keep up. Therefore, I need to remind myself to slow down and ensure that I have the necessary resources, health and energy to keep going on this marathon called life. What gets you out of bed in the morning? My love for life and humanity. I’ve always devoted my time and energy to causes that matter. My position at Coopera is no different because we help our partners grow their organizations and improve the lives of my Hispanic community. Fortunately, I found a job that I love and enjoy every day. I also can’t stay still for very long, so staying in bed all day is not an option. What excites you the most about the future of financial services in the Hispanic market?
Where do you go/what do you do to get inspiration? Remember how I said I couldn’t stay still? Well, I coach an eighth-grade volleyball team, direct a Hispanic youth choir, volunteer with immigrant service organizations and meet with Hispanic high school students to talk about their college plans. I’m active in my local Hispanic/immigrant community because it took a village for me to graduate from college. Therefore, it is my duty to give back and invest my time in the future generation of Hispanic leaders. My community inspires me to continue moving forward as we reach new opportunities together. What is something unique about you most people wouldn’t know?
3 Credit Unions Set Sights on Next-Level Community OutreachPosted by Miriam De Dios Woodward on October 16, 2017 The 2017 Warren Morrow Hispanic Growth Fund Grant will help seven credit unions continue their Hispanic outreach and community impact efforts. Named in honor of the late Warren Morrow, who dedicated his life and career to helping the underserved and empowering the Hispanic community, the grant is made possible by Coopera, CUNA and the National Credit Union Foundation. Each of the grant recipients is a Juntos Avanzamos-designated cooperative, a program taken to the national stage by the Federation. This post details how three of the grant recipients plan to allocate the funds. We will cover plans of the remaining four recipients in an upcoming post.
“Along with financial education, we will bring opportunity for membership in a safe, Hispanic-friendly financial cooperative where they will receive low-cost services that are relevant to their lives and financial counseling to help them meet their goals,” said Kathy Chartier, MCU president/CEO. “We often see members and potential members who are taken advantage of by large banks and predatory lenders. This program is specifically directed toward the Hispanic community with the goal of helping them improve their financial understanding and well-being.” Nueva Esperanza Community Credit Union (NECCU) “NECCU offers a comprehensive level of bilingual financial services to impact the needs of our target market,” said NECCU President/CEO Sue Cuevas. “We integrate financial services with education to improve members’ financial competency. In addition to basic financial services, staff deliver one-on-one orientations to new members when they inquire about share savings or share certificates of deposit. This empowers members with tools to understand their financial situations, set goals and develop paths to asset building/ownership.”
“Point West is endeavoring to engage the local Hispanic community where they live, work, socialize and seek assistance and services, while also testing a branching model outside of the traditional brick and mortar solutions,” said Steve Pagenstecher, Point West vice president of member experience. “By providing a full-service ATM coupled with an experienced and educated Point West employee, the goal is to increase access to an underserved community while driving Hispanic membership growth and financial outcomes for the community.” Please join me in congratulating each of these cooperatives for recognizing that serving the Hispanic community is not only the right thing to do, it’s smart business, as well.
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