Welcome to Coopera's June issue of Hispanic Outreach Insights! Coopera is a subsidiary of the Iowa Credit Union League and is a strategic partner of the Credit Union National Association. We help credit unions grow through the Hispanic market and are committed to bringing you relevant information that will aid your Hispanic outreach efforts. Growing by reaching the Hispanic market is not easy or quick. With so much information available on this topic, we wanted to compile the most relevant information in bite-sized pieces to guide your Hispanic outreach initiative. Whether you are the community outreach coordinator, marketing director or CEO of your credit union, Coopera is here to help answer your questions about the Hispanic opportunity. |
| Coopera & CUNA Join Forces: A Partnership Aimed at Serving the Hispanic Market |
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Coopera Consulting is proud to announce a partnership with the Credit Union National Association (CUNA) to provide products that will enable credit unions to actively engage and serve the Hispanic community.
This partnership represents a broader recognition of the potential benefits that serving Hispanics could have for U.S. credit unions and  the impact that credit unions will have on the economic development of Hispanic communities across the country.
According to Daniel A. Mica, President and CEO of CUNA, "The future of the credit union industry must include the Hispanic market, and we need to serve this community now more than ever in order to remain relevant and strong financial institutions." Through CUNA and Coopera's combined resources, we hope that our products will help enact a fundamental change in the way that many credit unions approach and think about serving the Hispanic market, and that ultimately, credit unions will not only increase their membership, but also introduce Hispanics to the financial mainstream. Our products include: |
| Understanding the Hispanic Culture |
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One out of every three U.S. citizens will be Hispanic by the year 2050 and nearly one out of every two Hispanics is currently unbanked. So why does a significant portion of the Hispanic population ignore credit unions and use the predatory check-casher down the street that does not offer them the best rates? In order to understand why Hispanics choose these fringe financial services, we have to better understand Hispanics.
Barriers
Although it may seem like a surprise, the language barrier that hinders some Hispanics is not the only reason why Hispanics decide not to use credit unions. Many Hispanics who immigrate to the U.S. have had little access to banks or credit unions or may have had negative experiences caused by weak regulatory oversight or corruption. As a result, they arrive in U.S. communities with the same basic mistrust of banks and credit unions.
Lack of Financial Education
In addition, many immigrants lack financial education and may be easily intimidated and overwhelmed by a credit union and the vast choices of products and services. Many newly arrived Hispanics have a need for the most basic of financial services, such as check cashing and remittances.
Success through Familiarity and Convenience
That is why many local grocery stores or money service businesses that Hispanics frequent often not only offer both check cashing and remittance services, but also employ bilingual Hispanic employees. It is the familiarity, convenience and value provided by these money services businesses that draw Hispanics.
Your credit union can provide these services, along with many additional financial services that these grocery stores cannot provide. It is important to recognize a wide diversity within the Hispanic community, and many Hispanics will seek to build credit, to build assets, and to invest and protect their wealth. Through grassroots marketing, outreach and financial education, you can draw Hispanics to your credit union and help them move from basic financial services to loans and asset-building products. |
