As technology continues to transform the financial services landscape, the Latino market is emerging as a key driver of growth and innovation. With trends like mobile banking, digital wallets, and fintech solutions becoming increasingly mainstream, credit unions and the financial services industry as a whole has a unique opportunity to better engage and serve this dynamic and largely untapped community. These digital tools are not just convenient—they are critical for bridging gaps in financial access, empowering Latino consumers and building stronger economic relationships.
Over the years of working in the financial services industry, I’m still struck by how many organizations are surprised to learn just how digitally savvy the Latino market truly is. There’s often a misconception that Latinos have low technology adoption, when in reality, the opposite is true. Latinos are leading the way in digital adoption. According to Pew Research, 91% of Latino adults own a smartphone, exceeding the national average of 81%. eMarketer reports that Latinos have the highest digital video consumption rate at 81%, while a TelevisaUnivision study found that four in five Latino shoppers use digital apps for product research and pre-shopping activities. Brookings research further highlights that Latinos have the highest financial technology usage rate (92%) compared to white (74%), Asian American (79%), and Black (88%) consumers.
Why are Latinos gravitating toward fintech solutions? Brookings points to a variety of reasons for this, including that Latinos are younger consumers who face more barriers to accessing financial services leading them to seek out alternatives in fintech. However, Latinos may also be attracted to fintech because they are looking for additional, low-cost ways to build credit and wealth. While fintech solutions promote positive consumer benefits, there are some features of fintech solutions that undermine those benefits such as lack of robust data security and privacy systems, a lack of transparency around costs and business models, avoidance of consumer protection laws and encoded racial bias, according to Brookings. That poses an opportunity for credit unions to attract and better engage with Latino consumers who may not be aware of the benefits of credit union membership. And taking it one step further, there is a powerful opportunity for credit unions partnering with fintechs to address the needs of the Latino marketplace together.
To better engage Latino consumers, credit unions can take actionable steps to bridge the gap between traditional financial services and innovative fintech solutions. First, credit unions should invest in culturally relevant on the ground and digital outreach and financial education programs tailored to the unique needs of the Latino market. This includes offering bilingual resources, hosting community workshops on building credit and wealth, and showcasing the advantages of credit union membership, such as low fees, personalized service and the credit union difference.
Second, credit unions can form strategic partnerships with fintech providers to deliver user-friendly, digital solutions that meet the expectations of tech-savvy Latino consumers. The key is ensuring that both your credit union and the fintech partner look at the needs of Latino consumers at the beginning stages of partnership building. These collaborations can enhance mobile banking platforms, expand digital payment options to include international remittance solutions, and introduce tools for credit-building, savings automation, and wealth management. By aligning credit union offerings with the preferences and behaviors of Latino consumers—while maintaining the credit union’s commitment to transparency, security, and member protection—your credit union can position itself as a trusted financial partner for this growing and dynamic market.
