|Warren Morrow describes the ideal CU member.|
The Hispanic market is the largest, fastest-growing, youngest, and most underserved market in the U.S. It presents a great growth opportunity for credit unions seeking to remain viable in the future.
According to the Pew Research Center, Washington, D.C., Hispanics will make up approximately one-third of the U.S. population by 2050. Currently, almost one of five people under age 18 is Hispanic.
Hispanics also play a major role in the U.S. work force. Almost half of all people entering the work force are Hispanic, according to the Bureau of Labor Statistics. The median age of Hispanics is 27, while the average age of credit union members is 47, report the U.S. Census Bureau and CUNA, respectively.
Hispanics have a purchasing power that’s expected to reach $1 trillion next year, according to the Selig Center for Economic Growth, Athens, Ga.—and yet 40% to 55% of U.S. Hispanics don’t have a relationship with a traditional financial institution.
The force of the Hispanic market is readily apparent. But how are credit unions tapping into this market?
As some credit unions struggle to grow due to aging memberships, increased regulatory burden, and competition from fringe financial service providers, others succeed by carrying out their mission of “people helping people” and serving this largely unbanked and underserved population.
Reaching out to a new market takes commitment and dedication to demonstrate you truly want to serve its needs. It’s not enough to simply translate marketing materials into Spanish or hire bilingual personnel.
Success requires deliberate, comprehensive steps resulting in a true partnership with the Hispanic community—where your credit union is a trusted financial service provider, an employer of choice, and a caring neighbor.