Hispanic Communities Are Largely an Untapped Market
Credit unions might believe they’re doing all they can to target valuable demographic groups, but there’s one market that many are neglecting, said one consulting firm and its credit union clients. Hispanics are a rapidly growing market, according to Des Moines, Iowa-based firm Coopera Consulting. And they are hungry for financial services and carry an abundance of new business opportunities for credit unions.
Mexico-born Miriam De Dios, CEO of Coopera, said that while many credit unions naturally serve Hispanics as a result of their member service area locations, not enough of them implement comprehensive plans to win over the ethnic group. Coopera opened five years ago and has helped approximately 70 credit unions court their Hispanic communities to date.
“We learned that credit unions in Mexico aren’t insured like they are here,” Miller said. “So we educate our Hispanic members to make sure they know we’re insured by the government, and that their money is safe here. Many of them have been victims of predatory lenders, which harmed their credit, and we’re working to help them improve that.”
Among the products United Educational CU developed amidst its Hispanic outreach efforts was the American Dream Loan, a small loan of approximately $1,000 designed to help members establish a credit history.