A recent study on the significance of gender for Hispanic savings and retirement found two important things:
1. Hispanic women have a huge appetite for financial education and a strong desire to save
2. Their savings could provide a critical safety net to America’s largest minority group.
“This study demonstrates that if financial information is communicated simply and respectfully, and in culturally and linguistically competent ways, Latinas, especially, will listen,” said Karen Richman, Ph.D., the principal investigator of the study, a collaboration between the National Endowment for Financial Education and the University of Notre Dame.
Reasons for Low Retirement Savings
Despite a desire to save, low earnings mean Hispanic women have much lower retirement account balances than any comparable demographic, the study found. Employment paths have a lot to do with these outcomes. According to the study, Hispanics switch jobs more frequently than other demographics. What’s more, they tend to accept positions that do not provide retirement savings benefits.
The research went on to show that Hispanics with employer-sponsored retirement plans are 50 percent more likely than whites to make hardship withdrawals. Hispanic women are more likely than Hispanic men to liquidate pensions with a lump-sum payment or to spend rather than reinvest their savings when they change jobs. Additionally, Hispanic women tend to see retirement accounts as a source of liquidity. They may take loans and early withdrawals, often to help others, and they end up paying large penalties.
How Credit Unions Can Help
Below are a few key takeaways from the study and what they mean for credit unions.
• Hispanics have the highest labor participation, and yet the lowest retirement security. Hispanic women would benefit from workplace financial education, particularly during job transitions as they are deciding what to do with retirement accounts. Credit unions can provide financial education, as well as investment and savings products in a way that’s relevant to this influential and growing audience.
• Hispanic women tend to be the administrators of family finances. The female head of the family often makes tough decisions without knowing all the options. Credit unions can address Hispanic women’s appetite for financial education and desire to save through direct outreach, relationship building and financial education opportunities. A great way to gain a better perspective on what Hispanic women need is through the creation of a Latina advisory group.
• Hispanic men and women are equally likely to participate in collective financial practices based on “confianza,” or “mutual trust.” Credit unions should work to develop relationships with Hispanics based on trust. They should position themselves as a dependable resource for the community through product accessibility, bilingual staff and community investment.
As this study reveals, a gap exists for Hispanic women in terms of saving for retirement. Credit unions, with their financial expertise and their people helping people philosophy, are well positioned to address this gap.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
Although they have taken their own paths to get to Coopera, all of our employees share a common passion: reaching and serving the Hispanic market. Hear their stories and learn what makes them tick through this series of get-to-know blog posts, starting with our CEO, Miriam De Dios Woodward.
How did you end up working for Coopera?
By happenstance. I was working at John Deere Financial when I received a call from my former supervisor at State Farm Insurance. Her husband had started a company working with credit unions, and he was recruiting for the company’s first open position. I applied for the job, and that’s when I met Warren Morrow, Coopera’s founder. Warren’s vision for the future of Coopera was so captivating I felt I needed to become a part of what he was building. I was hired as the first employee of Coopera more than 10 years ago, and the rest is history.
What does your typical day look like?
My days can vary quite a bit, which I love. I might be traveling to visit one of our clients to facilitate a planning session with their leadership team. Or I might have a couple conference calls with our clients or one-on-one meetings with my team. I might review some of our communications drafts before they are published or talk to a reporter. I have exposure to all aspects of our business. I also really enjoy the time I have to think about the company’s future. How we can continue to stay ahead of our clients’ needs is always on my mind.
What’s the best business advice you’ve ever received?
I’ve received lots of great advice over the years. Some of my favorites have been: Be a selfless leader.Be humble.Remember that as a leader, people are always watching you. Have fun.
What gets you out of bed in the morning?
Sometimes it’s our cat meowing at the crack of dawn. Joking aside, it’s knowing that it’s a new day in which I have the opportunity to make a difference. I am fortunate to work for a mission-based organization where I can see how our work impacts the lives of people every day. My presentation to an organization can spark someone’s interest in becoming a champion for inclusion. Our consulting advice can prompt a client to offer a new lending program that serves people not served before. Possibilities like this motivate me.
What excites you the most about the future of financial services in the Hispanic market?
The vast opportunity at hand. Although we have worked with a variety of organizations over our decade of service, we really have yet to scratch the surface. Access to financial services is the key to empowering our Hispanic community, and we have a lot of work to do. Credit unions continue to have a unique disposition to serving the Hispanic community and becoming the preferred financial services provider for the Latino community. I am excited to help our industry pick up the pace and position credit unions as leaders in this space.
What do you do to get inspiration?
I love to travel with my husband, especially outside of the country. Going somewhere new inspires me to step outside of what I do every day, try new things, think more clearly and be more curious. I also like to read and listen to all sorts of content, from Simon Sinek’s daily notes to inspire to the Harvard Business Review’s publications. I also love to meet people for tea or lunch and connect with them, especially people outside of my industry.
What is something unique about you most people wouldn’t know?
Growing up, my family moved close to 20 times as we settled from our move from Jalisco, Mexico, to the U.S. Through my travels, I’ve been fortunate to see Pope Francis, climb a volcano, walk on a glacier and ride in a helicopter, among other adventures. On my bucket list is visiting every continent at least once.Leave a comment
Congratulations to our CEO Miriam De Dios for her acceptance into the World Council of Credit Union’s Young Credit Union People Program (WYCUP)! Miriam’s scholarship was awarded at the 2012 World Credit Union Conference recently held in Gdańsk, Poland.
The WYCUP annual scholarship is given to only five nominees each year who are under the age of 35 and have each made significant contributions to the development of their own credit unions or regional/national credit union systems, as well as have demonstrated the potential to employ their unique talents at the international level.
Miriam was nominated for the honor by the Iowa Credit Union League (ICUL).
“Miriam is a strong representative of the credit union movement’s very promising future,” said Patrick Jury, president and CEO of ICUL. “We were happy to nominate her for the honor and are thrilled to learn she has been selected from such an impressive group of nominees.”
“I am so honored to receive this award and to be recognized for the work that Coopera does to assist the underserved Hispanic community in the U.S. obtain dignified financial services through credit unions,” Miriam told us. “There is tremendous opportunity for U.S. credit unions to serve our largely underserved Hispanic communities, and I am pleased that a renowned organization like WOCCU recognizes the growth opportunity that this presents for the U.S. credit union movement. I dedicate this award to Coopera’s founder and late CEO, Warren Morrow who turned his personal passion for serving the Hispanic community into the successful organization that Coopera is today.”
At the same time, Miriam also received news that she has been elected to serve on the Board of Directors for the Network of Latino Credit Unions & Professionals (NLCUP), a group of credit unions and professionals dedicated to promoting credit union services to the Hispanic community. Miriam has been elected to serve a 2-year term on the Board.
“NLCUP was specifically formed to promote the credit union philosophy within the Hispanic community,” says Miriam. “As a senior advisor on the CUNA Hispanic Outreach Committee, CEO of Coopera and member of the NLCUP Board, I plan to leverage the strengths of these organizations to better help our credit union clients with their Hispanic outreach efforts.”Leave a comment