Grow membership by earning trust through Latino outreach
The bank and credit union communities are beginning to adapt and engage with the Hispanic market and tackle the underlying issues to help Latinos successfully navigate their finances, developing unique products and services that actually help Latinos adapt to American financial culture. Credit unions have partnered with community organizations working toward assisting undocumented immigrants with their best interests in mind. A handful of credit unions have gone above and beyond to rewrite internal policies and procedures to remove roadblocks and genuinely engage with the Hispanic market.
The benefits of working with the Latino community are numerous. According to the United States Census Bureau, the number of Hispanics in the United States will grow from 63 Million in 2020 to 88 Million by 2040. As one of the largest and fastest-growing minorities in the United States, authentic outreach is critical to serving them. Uncovering better ways to serve them and their community builds strong relationships and cultivates the trust needed. The Latino population also tends to be younger than the general US population, providing credit unions a lifetime of service opportunities.
As the United States continues to be ravaged by the financial fallout of the coronavirus pandemic, many immigrant families have lost their jobs, are falling behind on their loan payments, and need someone to turn to for guidance and help. The government is not able to help immigrants who don’t have Social Security, so these families won’t receive a stimulus check. Additionally, their primary financial institutions won’t lend to them if they can’t prove stable income. This is where credit unions can shine, be the helping hand for individuals, engage with the Hispanic community and build strong relationships and trust by providing solutions that that suit their specific needs.
By engaging with this huge market, credit unions’ long-term goals of growing membership and loans can be fulfilled as Latinos find the solutions to their financial problems in financial cooperatives that will help them conquer the American dream. According to Forbes, the purchasing power of Hispanics in the US is almost $1.7 trillion, and Latinos are well known for their loyalty to brands, especially if the brand is committed to helping their community and families. Supporting local Catholic churches or charities, community centers or soccer-plexes with volunteers and money are just a few ways credit unions can make inroads with Latino households.
Family is of utmost importance to Hispanics, and they take recommendations from friends and family very seriously. By reaching one individual, credit unions have a great likelihood of growing the family relationship exponentially. For example, helping one family member with opening a checking account and applying for an auto loan, while providing service with empathy to their needs can build a snowball effect – particularly during times of crisis – of family members opening new memberships and applying for accounts and loans.
It’s easy to just do the right thing, be honest and genuine, but analyzing the needs and finding and allotting resources for the appropriate solutions to their financial concerns is hard; that’s why other financial institutions are not doing it. But the long-term dividends of building trust are immeasurable, including members and loan growth. A well-written strategic plan that directs the packaging of the right products and services, collaborating community partners, and then creating engaging messaging that is inclusive will go a long way toward building trust in the community.
Many organizations think about the first generation of immigrants when considering service to the community, but it’s important to keep second generation immigrants in mind, too. Many are bilingual and families are investing in their educational futures to ensure their children have the opportunity for a better life. In addition, multiple generations often live together in the Latino culture, so credit unions can also reach the grandparents, effectively capturing borrowers and savers all at the same time. Multigenerational relationships will help further the credit union as the family and community’s trusted financial advisers.
The benefits of serving the Hispanic community abound and can create unprecedented opportunities for credit unions willing to do the legwork to grow into this market’s primary financial institution.
