Report highlights Hispanic Outreach Opportunities for Iowa Credit Unions
DES MOINS, IA (April 30, 2014) —
A new report commissioned by the Iowa Credit Union League (ICUL) highlights opportunities for Iowa credit unions to grow membership and increase revenue through service to local Hispanic communities. Forty-six percent of Iowa Hispanics, which comprise the largest minority group in the state, are unbanked or underserved.
The Iowa Hispanic Opportunity Report—developed as part of ICUL’s partnership with Coopera, an Iowa-based firm focused on the emerging Hispanic market— includes the following information:
- Hispanics represent more than five percent of Iowa’s population
- Between 2000 and 2010, the Hispanic population in Iowa nearly doubled
- By 2040, Hispanics will represent nearly 13 percent of the population in the state
- A majority of the Hispanic population is Mexican, and nearly 40 percent are foreign born
- 73 percent of Iowa Hispanics speak Spanish at home or are bilingual
- The average homeownership rate among Hispanics is 54 percent
- Collective purchasing power of Iowa Hispanics exceeds $3.4 billion
The Coopera team conducted estimates for Iowa demonstrating the potential return on a collective credit union investment in service to Hispanics. If 10 percent of Iowa’s Hispanic adults were members of a credit union, they would contribute an estimated $64 million in new loan receivables and $5.2 million to annual income.
”Iowa credit unions have the opportunity to improve the financial lives of the youngest, fastest growing and most underserved population in the state,” said Murray Williams, Chief Operating Officer, Iowa Credit Union League. “Our hope is that this report will help Iowa credit unions increase their market share and decrease the average age of their credit union members.”
The Iowa Hispanic Opportunity Report also includes case studies of Iowa credit unions with successful Hispanic outreach efforts, including Des Moines Metro Credit Union, Bettendorf’s Ascentra Credit Union, Ames’ Greater Iowa Credit Union and Waterloo’s Veridian Credit Union.
“Business leaders have a tendency to think of service to Hispanics as a strategy important only to states in the ‘gateway’ region of the U.S.,” said Miriam De Dios, CEO of Coopera. “Yet, as this report demonstrates, providing fair and dignified financial services to the Hispanic community is a smart investment for Iowa businesses, as well. And this extends to credit unions, which adhere to a ‘people helping people’ philosophy that can lend to increased buy-in from executive leadership. What’s more, it’s a sure-fire strategy for capturing new members and achieving growth rates above the industry average. We believe the information in these reports will motivate Iowa credit unions to move forward with their strategic plans to better and more intentionally serve the Hispanic market.”
Coopera (ko-pair-a) is a full-service Hispanic market solutions company with specific focus on credit unions nationwide. Coopera’s dedicated bicultural and bilingual personnel work closely with clients to assess their needs and create growth strategies designed to increase Hispanic membership, revenue growth and loan volume. Coopera specializes in developing long-term partnerships with clients as they transition from the early stages of discovery to a best practice credit union. Founded by the late Hispanic community activist Warren Morrow, Coopera is owned by Affiliates Management Company, the holding company of the Iowa Credit Union League and is an exclusive alliance partner of the Credit Union National Association. For more information, visit www.CooperaConsulting.com.
About the Iowa Credit Union League
The Iowa Credit Union League is the trade association that represents the interests of Iowa credit unions and their more than one million members. Credit unions are not-for-profit, financial cooperatives owned and operated by their members. Iowans use their credit union membership to receive higher interest rates on savings and lower interest rates on loans. For more information on ICUL and Iowa credit unions, visit www.IowaCreditUnions.com. Follow ICUL on Twitter at www.twitter.com/icul or on Facebook at www.facebook.com/iowacreditunions.To learn more about credit unions, visit www.ASmarterChoice.org.