AUSTIN, Texas — A recently released Texas Appleseed report documented the improvement in the range of products and services offered by Texas banks and credit unions to attract unbanked Spanish-speaking immigrants to mainstream banking over the past two years.

For instance, 27 of the 32 institutions surveyed accepted the matricula consular card for account openings. The matricula card, Mexican-government issued identification, has been controversial and has been criticized as too easy to counterfeit.

In 2004, when Texas Appleseed, a nonprofit public interest law center, surveyed these financial institutions, just a handful were reaching out to the Latino immigrant population, according to the group. Most front-line bank personnel were not aware of the matricula consular, according to the earlier survey.

“Over the past two years, we have seen many Texas banks and credit unions of all sizes broaden their product offerings–particularly in money transfer services to Mexico–and expand their Spanish-language consumer information in print and on the Web,” Texas Appleseed Senior Policy Analyst Ann Baddour commented. “They are more aware of the significance of immigrant markets as a new customer base–and financial institutions of all sizes have begun to adopt policies, design branches, and develop marketing strategies to reach unbanked Mexican and Latin American consumers living in Texas.”

The latest Texas Appleseed report is available at www.texasappleseed.net.

Highlights of the 2006 survey findings include:

o All financial institutions surveyed offer at least some products and services that have been shown to meet the needs of immigrant communities.

o Many banks and credit unions–in Texas and across the nation–are reaching out to unbanked immigrants, both documented and undocumented, despite remaining regulatory concerns expressed two years ago.

o Seven surveyed financial institutions offer money transfer services to Mexico that cost $10 or less and do not require the recipient to hold a bank account. Fourteen offer a money transfer service costing $15 or less.

o Most of the banks and credit unions surveyed offer customer service in Spanish, though the level of service was not always consistent.

o Fifteen provide Spanish-language Web sites compared to eight in 2004.

The group also said that more work should be done to structure basic accounts to entice the unbanked into formal financial services and help them reduce or avoid overdraft fees. Additionally, they said money orders continue to be overpriced, with just five institutions offering them at $1 or less. –scooke@cutimes.com

Instant Insights /

Texas Appleseed Highlights Improvements in CU, Bank Offerings to Spanish-Speaking Immigrants

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