WASHINGTON (12/2/15)--The National Credit Union Administration laid out the challenges and opportunities of serving Hispanics during a live webinar Tuesday.
As attendees learned during the 90-minute panel discussion, called “Unique Challenges and Opportunities Serving Hispanic Credit Union Members,” the challenge of serving this population is great, but the opportunity might be greater.
That’s because 50 million, or one in six Americans are Hispanic in the United States today, a number that’s expected to more than double in the next 40 years, according to the Census Bureau.
The kicker? Roughly half of this population is either unbanked or underbanked.
“If we look at the most significant segment of the Hispanic population, it is that untapped unbanked and underbanked group,” said panelist Miriam De Dios, CEO of Coopera, a consulting firm that specializes in reaching and serving Hispanics. “If we talk about financial inclusion, this is a community that is thirsty for financial services, (but also one) that may not be fully aware of all the options.”
To tap this market, credit unions will have to contend with a variety of issues, panelists explained. Not least of which will be navigating the unique regulatory environment related to serving Hispanics.
Newer immigrants often fail to have the required documents to become credit union members, for example, making it important for credit unions to know all of their options in terms of what identification is acceptable for credit union membership.
“A credit union can accept a passport with an ID, an (ID card issued by the Mexican government), and a permanent or resident alien card,” among others, according to Sergio Osuna, another panelist and a supervisory examiner with the NCUA.
Once a credit union has a grasp of the regulatory requirements, to truly serve Hispanics, it must begin to build trust with the population.
De Dios said that unless the entire credit union buys into serving Hispanics, the program will have difficulty gaining steam.
“It really starts with having a genuine effort, having an organizational mentality of serving a new community that’s bought into at all levels of the organization,” De Dios said. “This is especially critical in the parts of the country where the Hispanic population may not be the majority yet.”
Added Maria Martinez, president/CEO, Border FCU, Del Rio Texas: “They feel more comfortable when they can speak to somebody that knows their language. I think it’s very important that if you’re going to advertise that you have services in Spanish … you also have to have staff that are going to attend to those people who are going to walk in.”