Miami, October, 1st, 2013 (By Hernan Tagliani). According to the latest FDIC report survey, 48.7% of Latino households were “unbanked” or “under-banked”. This means, they never had an interaction with a financial institution in the past or they have poor access to mainstream financial services normally offered by retail banks.
Hispanics have a growing need and demand for financial services. It is estimated that by 2020, one in five Americans will be Hispanic and by 2050 the gap will be even shorter, one in three.
Among Hispanic banking users, the financial service products with the biggest percentage difference of growth from 2008 to 2012 were debit cards/ATMs, home mortgages, and online banking. It is also estimated that 44% of Hispanics utilized online banking compared to 29% of the general market. Nearly half of the Hispanics listed online banking as their preferred channel to conduct transactions.
It is important to understand that Hispanic target marketing is not a passing fad. On the contrary, it is a long-term investment that will significantly pay off.
Based on the latest study conducted by The National Council of La Raza in California, 45.3% of the Spanish-speaking participants who did not have an account cited that the ability to communicate in their language was one of the most important things they were looking for in a bank. This is not surprising due to the fact that Hispanics, especially, want to feel like they are acknowledged and respected. Reaching out to them in their own language with a culturally relevant message is a crucial element to remember if you really want gain their business.
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Source: KE, and The Group Advertising.