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Stacie Cornell
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July Article
Study Finds Financial Service Providers Face New Challenges In Reaching And Serving Hispanics
Increased competition and changing demographics will require banks to adopt new strategies to reach the Hispanic financial services market, according to a new study released today. The report, Innovative Approaches to the Hispanic Retail Banking Market, analyzes the shifting landscape of the U.S. Hispanic market, the increased state of competition among banks and the overall impact these changes are having on retail banks targeting Hispanics.
The report identifies important changes in the geographic concentrations of Hispanics as well as the explosive increase in buying power, with the number of Hispanic households making over $50,000 per year growing at four times the national average.
The paper also suggests new opportunities for banks serving the Hispanic market and provides an analysis of newly defined segments, such as the Hispanic business owner, as well as other trends, such as increasing home ownership among Hispanics. The growing landscape of acculturated Hispanics and the resulting nuanced segments identified in the paper add complexity to an already diverse marketplace.
The report concludes that banks seeking to compete for a share of the Hispanic market should recognize the challenges of today's market and commit to a long-term strategy that meets the needs of a varied Hispanic population by going further than simply translating into Spanish. The study looks at those organizations that have crafted innovative approaches to targeting relevant and potentially lucrative segments within the Hispanic market.
Innovative Approaches to the Hispanic Retail Banking Market is an update to a 2004 paper studying the Hispanic financial services market that was cited by numerous sources, including PriceWaterhouseCoopers and the FDIC. Both reports were published by CMG Partners, a strategic marketing consulting firm with specialization in Hispanic market strategy.
The report identifies important changes in the geographic concentrations of Hispanics as well as the explosive increase in buying power, with the number of Hispanic households making over $50,000 per year growing at four times the national average.
