Market Trends: Hispanic-Americans and Financial Services

Table of Contents:

• Report Methodology
• Simmons Market Research Bureau

Chapter 2: The Hispanic Market - A Brief Demographic Profile

• 15% of the US Population will be of Hispanic Origin by 2007
• Over Four in Five Hispanics Live in Just 10 States
• Yet Other States are Growing Rapidly
• Table 2-1: States with Largest Hispanic Population: 2000
• Table 2-2: Five States with Fastest Growth in Hispanic Population: 1990 to 2000
• Top Hispanic Markets
• Figure 2-1: Top Hispanic Markets: 2002

Characteristics of Hispanic Households

• Household Types
• Table 2-3: Household Types in Hispanic and Non-Hispanic Households: 2000
• Household Size
• Hispanics by U.S. Generation
• Table 2-4: U.S. Hispanics: First, Second and Third+ Generation

Countries of Origin for Hispanic Americans

• Hispanics Trace Origins to a Diverse Group of Countries
• Figure 2-2: U.S. Hispanics by Country of Origin, 2002
• Household Size by Hispanic Origin
• Hispanic Origin By Region

Income and Education

• Buying Power in the Hispanic Market
• Table 2-5: 10 States with Largest Share of Hispanic Buying Power
• Employment, Occupation, and Size of Working Hispanic Population
• Income
• Figure 2-3: Percent of Full-Time, Year-Round Workers with Annual Income $35,000 or More, by Hispanic Origin: 2002
• Educational Attainment
• Table 2-6: Percent of Adults Ages 25+ with Completed High School Education or Better
• Latino Immigrants
• Table 2-7: Percent of Adults Ages 25+ with at Least a High School Education
• Table 2-8: Completed Education of Adult Central and South American Immigrants by Country of Birth, 2000

Chapter 3: Financial Services and the Hispanic Market

• Improving Access to Banking Services in Latino Immigrants
• Overcoming Documentation Barriers
• Challenges to Modified Document Requirements
• Bank Community Response to Challenges
• Overcoming the Language Barrier
• Overcoming the Cultural Barrier
• Top Financial Services Advertisers in the US Hispanic Market

Attitudes Toward Finances and Financial Services

• Role of the Family
• Income, Acculturation Affect Financial Situation
• Financial Hardships Cited
• Figure 3-1: Percentage of Latinos Unable to Save Money for the Future, by Language Spoken
• Country of Origin Affects Financial Status
• The Affluent Hispanic

Chapter 4: Banking Products: Accounts, Debit and Credit Cards, and Remittance Services

• Bank Account Ownership Lower for Many Hispanics
• Figure 4-1: Bank Account Penetration, by Racial/Ethnic Group
• Figure 4-2: Penetration of Bank Accounts, by Income, White and Latino Households
• Impact of Immigration Status
• Table 4-1: Banking Products Ownership, by Hispanic Origin

Use of Debit Cards

• Payment Option of Choice
• Figure 4-3: Usage of Debit Cards Among Hispanics
• Spanish-Language Information Key

Strategies to Attract Hispanic Customers

• Use of the Internet
• Spanish-Language Web Sites Hold Appeal
• Federal Efforts to Target Hispanic Web Surfers
• Use of Public Relations and Community Involvement
• Acquiring Mexican Banks
• Bringing Hispanic Banks to the U.S.
• Direct Marketing Campaigns

Credit-Related Products

• Again, Income and Place of Birth Matter
• Figure 4-4: Credit Card Ownership, by Racial/Ethnic Group
• Figure 4-5: Penetration of Credit Cards, by Income, White and Latino Households
• Communication Strategies
• Sears’ Experience
• Remittance Services
• Remittance Services
• New Services from U.S. Banks
• Credit Unions and Remittances

Chapter 5: Mortgages, Insurance and Investments

• Home Mortgages
• Home Ownership Lower for Hispanic Americans
• Home Ownership, by Income, White and Latino Households
• Figure 5-2: Home Ownership, by Income, White and Latino Households
• First Obstacle to Home Ownership: Real Estate Agents and Brokers
• High Denial Rates and Predatory Lending: Problems in Hispanic and Other Minority Communities
• Figure 5-3: Percentage of People Expressing Comfort with Home-Buying Terms
• by Racial/Ethnic Groups
• The Internet, the Hispanic Market, and the Home-Mortgage Industry
• Partnerships for Home Mortgages
• The Secondary Market
• Top Mortgage Lenders to Hispanics
• Table 5-1: Top Mortgage Lenders to Hispanics by 2000 Loan Volume

Insurance Products

• Table 5-2: Selected Insurance Types by Hispanic Origin
• Product
• Figure 5-2: Selected Insurance Types by Hispanic Origin

Investments

• Table 5-3: Investments by Hispanic Origin
• Investment Firms Pay More Attention to Hispanics
• Merrill Lynch Gets Bullish on Hispanics
• Principal Financial Also Looks to Hispanics

Chapter 6: Case Studies

• Flag Financial Corp.’s El Banco de Nuestra Comunidad
• PFF Bancorp, Inc.
• Bank of America’s SafeSend
• Latino Community Credit Union

Abstract:

Market Trends: Hispanic Americans and Financial Services a new report from Packaged Facts, offers marketers and retailers alike an in-depth look at the banking, investment and loan patterns among Hispanic Americans. It discusses new products and product strategies by large and smaller financial services companies, examines population and immigration trends among Hispanic Americans and how they influence decisions about money, delves into the attitudes and perceptions Hispanics have regarding financial services, and addresses marketing strategies that banks, investment firms and other financial services have adopted to attract Hispanics, who are now the largest minority group in the country.

Introducing Market Trends
Market Trends is the latest product line from Packaged Facts. These timely, compact reports offer insight and analysis into new product trends, demographic shifts, and consumer behaviors that affect the consumer goods and services industries.

About the Author
Raúl Pérez, Ph.D., is president of Utilis, a market research and consulting firm specializing in the U.S. Hispanic market. His firm offers quantitative and qualitative research solutions to clients in the beverage industry, automobiles, health care, publishing, financial services, Internet, cable/satellite television, and apparel, among others. Dr. Pérez obtained his doctorate at Yale University and has over 12 years of research experience in Hispanic populations.

Report Methodology
The information in Market Trends: Hispanic Americans and Financial Services is based on both primary and secondary research. Primary research involved interviews with marketing, public relations and industry analysts within the financial services industry. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature. The analysis of consumer demographics derives from Simmons Market Research Bureau survey data for fall 2002.

What You’ll Get in this Report
Market Trends: Hispanic Americans and Financial Services offers unique perspective on the growing and promising Hispanic market for financial services. No other market research report provides the data, analysis and trends coverage that Market Trends: Hispanic Americans and Financial Services offers. The report addresses the following segments:

• Hispanic Population Trends - including immigration patterns, geographical concentrations and insights into spending power and income.
• Attitudes Regarding Financial Services - including data on financial product usage profiles.
• Financial Services Products - and the degree of usage/acceptance among Hispanic-Americans.
• Marketing and Community-Relation Strategies - that are effective in reaching Hispanic consumers.
• Case studies - of financial services companies that are targeting the Hispanic market.

Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

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How You Will Benefit from this Report
If your company is already targeting Hispanic consumers or is considering making the leap into the business, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the factors that influence banking, investment and loan decisions among Hispanic Americans,

This report will help:

• Marketing Managers identify market opportunities and develop targeted promotion plans for financial instruments of appeal to Hispanic Americans
• Research and development professionals stay on top of competitor initiatives and explore demand for financial products for this demographic group.
• Advertising agencies working with clients in financial services to help understand Hispanic consumers to develop messages and images that them to purchase these products.
• Business development executives understand the dynamics of the market and identify possible partnerships.
• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

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