DES MOINES, Iowa (5/8/13)--Like most cultural groups, the Hispanic market is made up of several smaller segments, many of which represent opportunities for credit unions, according to a new white paper from Coopera, a Hispanic market solutions company with a focus on credit unions nationwide.
In the paper, "The Multifaceted Hispanic Market," author Anna Pena, Coopera client account coordinator, suggests credit unions should go beyond making available a popular or emerging product to attract Hispanic consumers.
"Because there are so many facets to the Hispanic community, it's important for credit unions to understand the makeup of their local Hispanic community," Pena said. "After determining which of the Hispanic market segments exist within a credit union's field of membership, they can better define their target market and understand how service to these consumers aligns with the credit union's growth strategies."
The paper outlined three Hispanic segments in need of credit union services. They are:
Second generation and Generation Y. Second-generation Hispanics generally have higher incomes, more degrees and own more homes than their parents, making them attractive members
Small business owners. Often Hispanic business owners are on their own, without the benefit of boards of directors, shareholders or executive teams. Nearly 90% of Hispanic-owned businesses, in fact, are without paid employees. That underscores the importance of leadership support and guidance for this critical segment of the Hispanic population, the paper said.
Underserved. For many credit unions, the best marketing tactics for reaching the unbanked will be financial education outreach and word-of-mouth referrals, the paper said. With these methods, the credit union can begin to build awareness about the benefits of depositing and borrowing from a federally insured financial cooperative, as well as the credit union difference.
Getting Americans to choose credit unions as their best financial institution is a strategic vision for the credit union movement. One of the ways to do this--through the Unite for Good campaign--is by raising awareness of credit unions, said the Credit Union National Association. Consumers can find out more information about credit unions at aSmarterChoice.org.