DES MOINES, Iowa (5/1/14)--A new report commissioned by the Iowa Credit Union League (ICUL) highlights opportunities for Iowa credit unions to grow membership and increase revenue through service to local Hispanic communities.
Forty-six percent of Iowa Hispanics, who comprise the largest minority group in the state, are unbanked or underserved.
"Business leaders have a tendency to think of service to Hispanics as a strategy important only to states in the 'gateway' region of the U.S.," said Miriam De Dios, CEO of Coopera, an Iowa-based firm focused on the emerging Hispanic market. Coopera is an ICUL partner and helped develop the Iowa Hispanic Opportunity Report.
"Yet, as this report demonstrates, providing fair and dignified financial services to the Hispanic community is a smart investment for Iowa businesses, as well," De Dios said, adding, "And this extends to credit unions, which adhere to a 'people helping people' philosophy that can lend to increased buy-in from executive leadership."
The report includes the following information:
The Coopera team conducted estimates for Iowa demonstrating the potential return on a collective credit union investment in service to Hispanics. If 10% of Iowa's Hispanic adults were members of a credit union, they would contribute an estimated $64 million in new loan receivables and $5.2 million to annual income.
"Iowa credit unions have the opportunity to improve the financial lives of the youngest, fastest growing and most underserved population in the state," said Murray Williams, ICUL chief operating officer. "Our hope is that this report will help Iowa credit unions increase their market share and decrease the average age of their credit union members."
The Iowa Hispanic Opportunity Report also includes case studies of Iowa credit unions with successful Hispanic outreach efforts, including $46 million-asset Des Moines Metro CU; $328 million-asset Ascentra CU, Bettendorf; $329 million-asset Greater Iowa CU, Ames; and $2.4 billion-asset Veridian CU, Waterloo.