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.”
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
The annual Financially Underserved Market Size Study, conducted by the Center for Financial Services Innovation (CFSI), illustrates the tremendous opportunity that exists to address the needs of financially underserved consumers. The study measures the size, composition and opportunity for products and services underserved individuals use to save, spend, borrow and plan.
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.
How Credit Unions Can Help
How Credit Unions Can Help
How Credit Unions Can Help
Small Business Finance
How Credit Unions Can Help
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 comment
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 comment
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.”
Santa Cruz Community Credit Union (SCCCU)
“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.”
DC Federal Credit Union (DGEFCU)
“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.”
JetStream Federal Credit Union
“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.Leave a comment
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?
In 2014, I participated in the Latina Leadership Initiative, a leadership program for young Latina women in Iowa. Miriam De Dios Woodward, Coopera’s CEO, presented about the opportunities in the underbanked and unbanked Hispanic market. I could relate to her presentation, as I grew up in an underbanked household. I was intrigued by the topic and by her personal story.
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?
The impact credit unions have yet to make. By meeting the needs of Hispanics in their communities and becoming their preferred financial services provider, credit unions will not only help Hispanics reach economic stability, but credit unions, themselves, will experience growth in membership, product usage, market penetration, etc. The opportunity is knocking on their doors; it is up to them to embrace this community in need.
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?
I have a great appreciation for art. When I was younger, I took any opportunity I had to create things with my hands from pottery to paintings. My senior year in high school, I made All-State in Iowa for my diverse art portfolio. Art is the one aspect of my life that I enjoy the most as it forces me to slow down and relax. Most of my pieces showcase my culture, life experiences and Salvadoran background.Leave a comment
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.
Members Credit Union (MCU)
“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 Credit Union
“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.Leave a comment
A Nielsen report released last month details the growing consumer power and influence of Hispanic females living in the U.S. According to the report, Latina 2.0: Fiscally Conscious, Culturally Influential & Familia Forward, this demographic grew 37 percent between 2005 and 2015, compared to 2 percent for their non-Hispanic White counterparts and 11 percent for total women in the U.S. Younger Hispanic women are also outpacing the rest of the nation in buying power.
Below are a few key findings in the report, along with actions credit unions should consider – especially as we close out another successful National Hispanic Heritage Month.
Credit union actions: Consider starting a program to provide young entrepreneurs access to capital, mentorship and networking opportunities – with a special focus on Hispanic women.
Credit union actions: Ensure your products, services and marketing materials are culturally relevant and language appropriate for Hispanic members.
Use of Mobile
Credit union actions: When planning your mobile banking and payments strategies, recognize Hispanic females as a key audience. Consider holding focus groups or other forums for getting feedback from a cross-section of members. When possible, incorporate video into your Hispanic-focused communications strategy.Leave a comment
Over the next few months, we will write on a series of financial inclusion topics as they relate to the Hispanic culture. This first one focuses on an aversion to debt that exists within many segments of the Hispanic population. It also offers ideas for credit unions on how to provide education and value in this area.
Although there’s no one right answer to this question, it’s important to remember conventional banking as we know it in the U.S. may not be part of the traditional Hispanic upbringing. As Glenn Llopis, founder of the Center for Hispanic Leadership, wrote in a HuffPost blog post, “This has led to a general mistrust of banks and, when coupled with a natural skepticism, would account for the $53 billion attributed to ‘unbanked’ Latino households (according to a research arm of the University of Virginia’s Darden School of Business).”
We see the effects of debt aversion in higher education, as well. According to Hilda Hernandez-Gravelle, senior research fellow for the Institute for College Access & Success, several cultural factors contribute to the difficulty Hispanic students often experience when it comes to securing financial aid for college. These include fear of debt, mistrust of lenders and conflict between family obligations and educational aspirations. “While Latinos generally have a strong commitment to education, many believe that if you can’t afford to pay for it up front, you can’t attend,” Hernandez-Gravelle writes.
How can credit unions help?
Avoid a one-size-fits-all approach to financial education.
It’s important to remember different cultures and financial classes have different perspectives on money and financial services providers. For example, as psychologist Miquela Rivera, PH.D., points out, for first-generation, low-income Hispanics, accumulation of money might be, at first, the main goal. Later, they may realize money in itself is not a satisfier, but that satisfaction comes from doing what they want in life, without excessive financial worry.
“Latino students who are financially literate must view money as a means, tool or resource for getting things done, not an end in itself,” Rivera writes. When credit unions help their Hispanic members achieve this mindset, those members begin to see more clearly the importance of establishing credit and that debt, when managed responsibly, can actually be beneficial.
Focus on cultural needs vs. language barriers.
Rather than focusing on literacy and word-for-word translations, Principal’s Hispanic Market Program focuses on context and cultural needs to engage Hispanics in retirement savings. The program promotes a “transcreate vs. translate” ideology, focusing on context in written educational materials rather than the word-for-word translation. Also built in is incorporating simplicity in presentations and correcting misinformation, such as the kind that leads to distrust in financial institutions.
Credit unions should take a similar approach to educating Hispanic members and prospective members about debt and creditworthiness.
Build trust and credibility.
Llopis recommends offering culturally relevant and language-appropriate products and services backed by bilingual staff. He adds it’s also important to show genuine concern for the community – for example, by active involvement in Hispanic issues and sponsorship of local events. The community will be more likely to trust the education a credit union offers if it’s playing an active role in the betterment of their daily lives.Leave a comment
This article originally appeared on CUinsight.
Some of their best ideas come to them after hours, when the halls of the credit union are quiet and they’re free to think beyond the day-to-day business of serving members. That’s precisely when Dustin Fuller and Deke Alexander, executives for Living in Fulfillment Everyday (LiFE) Federal Credit Union in Denton, Texas, began to wonder aloud about a credit union mission trip.
No strangers to the life-changing impact of church-sponsored mission trips, Fuller, LiFE’s CEO, and Alexander, the cooperative’s chief lending officer, envisioned immediate potential. Not only would a trip like that impact countless lives in poverty stricken countries, it could also create a completely immersive and fulfilling experience for both staff and the credit union’s members.
“Credit unions have an outstanding opportunity to change the employee experience that goes far beyond the 9-to-5,” said Alexander. “As employers, we’re often focused on tangible employee benefits, like dental and vision care or sales incentives and PTO. Yet, creating a culture that allows employees to improve lives in villages thousands of miles away – that’s hugely beneficial. You then transform everything. Suddenly a run-of-the-mill transaction at the teller window brings about the realization that serving this member allows our credit union to serve someone else in the third world.”
The Plan Takes Shape
That night, before the after-hours brainstorm had concluded, the two solidified a plan to coordinate two mission trips in two years. The first will take place in the Dominican Republic this November; the second in Mexico during 2018.
For each mission trip, LiFE will partner with area churches experienced in the local cultures and versed in the specific needs of the people. Their focus will be on helping villages gain access to clean drinking water. They will also work to develop longer-term relationships with the villagers, many of whom Alexander says have access to Facebook, affording LiFE staff the opportunity to maintain those connections once back in the states.
Engaging LiFE Members in the Mission
Beyond employees, Fuller and Alexander, both of whom have participated in several mission trips to the Dominican Republic, are also intent on bringing the credit union’s members into the initiative. After working with Coopera to learn more about the credit union’s Hispanic membership, LiFE executives learned a significant portion of the member base has ties to the Mexican culture. Therefore, Fuller and Alexander believe, the second of the planned mission trips will be particularly important to the membership.
“Our first mission to the Dominican Republic will include credit union members who know the trip and the culture extremely well,” said Alexander. “They will serve as guides to help train our staff, some of whom will actually lead the second trip to Mexico.
“We’d love to open up the trips to even more members in the future because we see it as a way to bond employees and members over something other than financial matters,” continued Alexander. “This will create a more intimate understanding of what can really happen when we put our hands and feet to work together. There’s a multiplying effect.”
To raise funds for the mission trips, LiFE is coordinating a golf outing called the Impact Life Golf Tournament Oct. 14, 2017 in McKinney, Texas. With the money raised, the credit union and its partner churches will buy the water filters they need to install once in the villages.
The Multiplying Effect of Living Our Purpose
“When you think about it, these trips strike right at the heart of what we do,” said Alexander. “For us, LiFE is about ‘Living in Fulfillment Every Day.’ A big piece of that is helping our employees see the fruits of their labor. We want to show our staff what it really means to make an impact, and to be a blessing to others.
“Our hope is this will inspire other small credit unions to think big,” said Alexander. “We want everyone in the movement to see it’s possible to get outside the 9-to-5, outside the SEG group, even outside their local communities. Let’s go on an adventure together, make lives better and come back changed people.”
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