Is Latino use of mobile banking an opportunity or exaggeration?

U.S. Hispanics’ current spending power is estimated to be roughly $1.4 trillion, so it’s no surprise that they represent a significant market opportunity for businesses, credit unions included.  These numbers prompted Nielsen to conduct research in the beginning half of 2015 to uncover what marketing products, services and themes resonate the most among U.S.’s Latino population.  What they found is significant for credit unions: Mobile Banking apps and mobile payment services have exploded among this segment of our population.

In fact, Nielsen analyzed the top 10 Spanish language ads among Hispanics in the U.S. from earlier this year and found that 3 of the top 10 ads featured mobile banking and payments.  According to the findings, “U.S. Hispanic mobile subscribers are highly engaged in mobile banking and shopping activities. Forty-one percent of U.S. Hispanics are mobile bankers, vs. 36% non-Hispanic. Hispanics are also heavy users of digital platforms and quick adopters of new technology. And as a result, they’re more likely to shop using their mobile devices (36% vs. 32% non-Hispanics).”

Now compare that to a report yesterday in the Latin Post, citing The Checking Experience Index produced by the banking institution TD Bank. According to this report released on Oct. 12, 2015, the numbers could be even more impressive than what was estimated earlier this year. This report found that 93 percent of Hispanic respondents favored online banking and 81 percent preferred the use of their bank’s mobile options when handling day-to-day transactions. Could these overwhelmingly large figures possibly be accurate of the U.S. Latino population’s use of mobile banking?

 

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