A new report from the California and Nevada Credit Union Leagues highlights opportunities for credit unions in California and Nevada to grow their memberships and revenues by serving local Hispanic populations.
The Hispanic Opportunity Report, set for release next month, estimates that if 10% of Hispanic adults in each state were members of a credit union, they would contribute an estimated $2.1 billion in loan balances and $592 million to annual income for California’s credit unions. Nevada’s Hispanic adults would contribute an estimated $82 million in loan balances and $28 million to annual income for credit unions.
In response to demographic data reported by the U.S. Census Bureau following its 2010 national survey, the California and Nevada Credit Union Leagues, and Applied Research Institute, commissioned Coopera to produce the Hispanic Opportunity Report to better understand the current and future market situation in both states, said Lucy Ito, executive vice president and COO for the leagues.
Coopera is an Iowa-based economic development firm focused on the emerging Hispanic market. The Applied Research Institute of the California Credit Union League initiates high quality research on topics that can help credit unions and credit union service organizations
Among California’s Hispanics, the Hispanic Opportunity Report also highlights the following demographic and economic trends:
- Hispanics represent 38% of the state’s population.
- 62% were born in the U.S., and the median age is 27.
- One in six businesses are Hispanic-owned (17%).
- 41% are underserved.
- The state is No. 1 in nation in Hispanic buying power.
- Hispanics have $265 billion in disposable income.
In Nevada, the report outlines the following demographic and economic data among Hispanics:
- From 2000 to 2010, the state’s Hispanic growth rate (82%) outpaced California (28%), Texas (36%), and Florida (57%).
- By 2030, one out of three Nevada residents will be Hispanics.
- 60% were born in the U.S., and the median age is 26.
- 8% of businesses are Hispanic-owned, approximately 18,000.
- North Las Vegas and Las Vegas have the highest ratio of Hispanic-owned businesses.
- More than half (more than 350,000 individuals) are underserved.
“The findings of the reports indicate that opportunities abound for California and Nevada credit unions to position themselves for serving the fast-growing and extremely influential Hispanic market,” Ito said.
The Hispanic Opportunity Report also debunked what it said are common myths businesses have about the Hispanic community. Additionally, it highlighted case studies of credit unions with successful Hispanic outreach efforts, including the $70 million First Imperial CU in El Centro, Calif., the $120 million Great Basin FCU in Reno, Nev., the $104 million Santa Cruz Community CU in Santa Cruz, Calif., and the $2 billion Travis CU in Vacaville, Calif.
The Hispanic Opportunity Report will be available to California and Nevada credit unions in February.