Commissioned by the California and Nevada Credit Union Leagues, a new report from Coopera highlights opportunities for credit unions in California and Nevada to grow their membership and increase their revenue through service to local Hispanic populations.
Coopera’s Hispanic Opportunity Report will be available to California and Nevada Credit Union League Applied Research Institute members first, and then it will be available to the general public following these webinars:
As the influence and impact of Hispanic consumers continues to grow in the U.S., the Coopera Hispanic Opportunity Report discusses what serving Hispanics means for California and Nevada; which credit unions are best positioned to serve the Hispanic community; and characteristics of the local communities that must be considered to successfully serve Hispanic residents.
According to the report, local credit unions’ biggest growth opportunity right now is Hispanics.
In California, the report uncovers:
For the report, the Coopera team calculated if 10 percent of California’s Hispanic adults were members of a credit union, they would contribute an estimated $2.1 billion in loan balances and $592 million to annual income.
In Nevada, the report reveals:
A similar calculation done for Nevada, based on an assumption of 10 percent of the Hispanic community joining a credit union, found Nevada’s Hispanic adults would contribute an estimated $82 million in loan balances and $28 million to annual income.
The Hispanic Opportunity Report also debunks common myths businesses have about the Hispanic community and shares case studies of credit unions with successful Hispanic outreach efforts, including:
For more information about this report, contact Coopera at: http://www.cooperaconsulting.com/contact-us.cfmLeave a comment
Building on their five-year partnership, the Credit Union Association of New York (CUANY) and Coopera have signed four credit unions to take part in the inaugural Hispanic Member Growth Strategy Program. Spots for four additional mid-sized credit unions to participate in the outreach program are still available.
Demographics show the importance of helping New York credit unions grow by serving the Hispanic market. In New York:
– Hispanics are the largest, fastest-growing, youngest and most underserved group in the U.S.
As part of the Hispanic Member Growth Program, Coopera provides valuable resources and counseling to three small (assets under $25M) and five mid-sized ($25M-$500M in assets) New York credit unions, helping them identify Hispanic outreach opportunities within their neighborhoods and create affordable banking alternatives to meet the needs of this community.
To date, four credit unions are participating in the CUANY and Coopera program:
– Cooperative Federal Credit Union of Syracuse
More information on the 2012 Hispanic Member Growth Strategy program is available via archived webinar at http://diigo.com/0pzxe.
New York credit unions interested in participating in this program should contact Coopera at 866.518.0214 or www.cooperaconsulting.com for additional details.Leave a comment
Second only to Mother’s Day, Christmas is a busy day for remittance transfer providers. With many issues complicating the availability of these services, U.S. Hispanics may be looking for a new provider this December 25.
Could this be an opportunity for your credit union?
Once the domain of Latin mom-and-pop shops, remittance services have in recent years become accessible to Hispanic and other consumers through their local credit unions.
Beyond simply allowing consumers another choice, providing remittance services also gives credit unions the chance to deliver more-comprehensive financial services to a largely underserved population. In fact, remittance services are so successful that Coopera has made it a best-practice solution for credit unions looking to invest in the youngest, largest and fastest-growing segment of the U.S. population.
Yet, it’s important to understand remittances aren’t necessarily a tool for attracting new Hispanic members. Credit unions should view these services more as a value-added tool to increase the depth of their product suites. Credit unions with comprehensive programs ultimately complete more remittances than those without a similarly robust program.
To be truly successful, credit unions often partner with a trusted provider to bring remittance transfer services to their communities. Even though regulations have been delayed, there are still serious concerns facing the industry (I recently wrote about these issues for the Credit Union Times).
Before settling on a partner, first endeavor to understand your typical member’s need, their country of origin and the available locations within the typical recipient’s country. As well, examine your local market competition to provide the most competitive offering. What other local organizations are providing remittance services? What are they charging? What are their hours of operation, etc.?
Although complicated, an international money transfer tool will continue to be a best-practice for credit unions’ Hispanic outreach and service strategies. Therefore, it’s vital for these cooperatives to prioritize the research, due diligence and formation of strategic partnerships to continue (or to begin) providing this crucial service.Leave a comment
The 2012 elections demonstrated the growing power of Hispanic Americans in the United States. Both Gustavo Gruber, Coopera VP and I have been excited to watch media take note of this influence. Each of us were recently asked by both Credit Union Magazine and The Des Moines Register to address the cultural impact evidenced by the recent democratic process. Below are brief recaps of our thoughts on this exciting development.
As told to the Des Moines Register: The face of the American voter is changing and we — Hispanics — have more influence. With one out of six U.S. residents being Hispanic and Hispanic purchasing power exceeding 1 trillion, it’s no surprise.
Hispanic-owned small businesses are growing at over twice the rate of the national average — estimated to be more than $350 billion in revenue annually — and these entrepreneurs advocate for issues such as access to capital, affordable healthcare and policies that will continue to improve the U.S. economy so that they can continue to expand their businesses and create jobs.
Catering to the Hispanic population is not only important to the strategic growth of credit unions, it is important to our country as a whole.
As contributed to Credit Union Magazine: The Hispanic community is not a monolithic market — Hispanics are not all Mexican, but rather come from diverse races, nationalities, and ethnicities representing 21 Latin American countries, or 22 when Spain is included. However, most Spaniards do not consider themselves Hispanics as defined by the U.S. Census Bureau.
Hispanics come to this country for economic, political and family reasons, among others, and always with the intention to return home in two or three years, when the reason that brought them to the U.S. is resolved. This scenario creates a situation that slows down assimilation while intensifies acculturation.
Therefore, the person holds on strongly to their own culture while trying to adapt to the American way of life.
Credit unions have recognized the importance of this growing market and many have been very strategic about developing strategies to attract and serve this community.Leave a comment
It was my pleasure to appear for a second time on a recent episode of CU Broadcast, this time to discuss Coopera’s Hispanic Opportunity Navigator. It’s a tool that is customized for each credit union and is designed to help credit unions at all Hispanic outreach levels – discovery, emerging and best practice. That’s why I was so excited to have the opportunity to share the benefits of this proprietary tool with CU Broadcast’s Mike Lawson.
The interview was also my first following my appointment as CEO of Coopera, which made it all the more special. To watch the episode in its entirety, simply click Play below. You can also find it at CUBroadcast.com.
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