Miriam De Dios, CEO of Coopera, cites three areas in which credit unions can enhance their Hispanic outreach:
1. Loans. Credit unions with Hispanic growth programs experienced a 5.09% average annual membership growth rate in the three years after implementation, compared with a 2.07% annual increase over the three prior years, according to CUNA and Coopera analysis. Also, the average annual loan growth rate climbed to 8.62%, up from 5.11% before starting the program.
“The Hispanic market is thirsty for loans,” De Dios says, “and credit unions can succeed by making those loans culturally relevant.”
2. Immigration assistance. President Obama’s Nov. 20, 2014, executive order extended deportation relief to millions more immigrants in the U.S. by expanding Deferred Action for Childhood Arrivals (DACA) and creating Deferred Action for Parental Accountability (DAPA), which goes into effect in May 2015. Immigrants face significant expenses when they apply.
“Immigration service providers are seeking partners at the table to provide financial assistance as immigrants go through these processes.” De Dios says. “That’s a huge opportunity for credit unions.”
3. Hispanic/millennial overlap. Hispanics represent a younger demographic than the population as a whole, and could help credit unions lower their average member age of 48.5. About 62% of Hispanics are younger than age 35, while just 47% of the overall U.S. population is younger than age 35, according to the U.S. Census Bureau. “Many Hispanics are millennials,” De Dios says.
That’s why she suggests credit unions include Hispanics in their millennial outreach initiatives. For instance, Hispanic members might serve on a youth advisory committee. “Sometimes people forget there’s an overlap when we talk about marketing to these segments,” she says.
Coopera, a CUNA strategic alliance partner, helps credit unions reach Hispanics.