Hispanics’ use of a variety of financial products and services—such as credit cards, auto loans, and mortgages—has outpaced that of non-Hispanics in recent years.
And their expenditures continue to grow, reaching $1.4 trillion in 2016, according to Miriam De Dios Woodward, CEO of Coopera.
Yet 46% of Hispanics remain unbanked or underbanked, according to the FDIC.
“This illustrates a tremendous opportunity for financial institutions, and specifically for credit unions, to serve this largely untapped market,” De Dios Woodward says. “Credit unions have a chance to help nearly 60 million Hispanic individuals in the U.S. access financial services.”
As technology continues to improve, the way Hispanics access information and conduct financial transactions continues to evolve, says De Dios Woodward.
Mobile devices play a key role.
According to the Pew Research Center, while 60% of Hispanics own a desktop or laptop computer, 88% of Hispanics born within the U.S. and 62% of Hispanics born abroad own a mobile device, such as smartphone or tablet.
According to a 2016 Federal Reserve report on mobile banking, mobile phones are prevalent among unbanked and underbanked individuals, with 40% of unbanked individuals having access to a smartphone.
Among Hispanics who have a bank account with a financial institution and own a mobile device, 56% use mobile banking services.
Having a smartphone or other mobile device allows users to carry out their banking needs without using a home computer or broadband Internet service, De Dios Woodward says, and the affordability and accessibility make these devices an attractive option for carrying out day-to-day financial tasks.
“Hispanics use mobile to access more information across the board,” she says. “In turn, they use the devices to conduct financial business. On these devices, Hispanics can access more language-specific programming and fintech solutions that allow them to pay bills, check balances, or even send money internationally in a more convenient way.”