Finding Financial Friends: Hispanic Consumers And Finances

Financial Groups Need To Become Financial Friends Of Hispanic Consumers
Finding Financial Friends: Hispanic consumers and finances have a rigid history that has only recently seen a boost in efforts to help make financial services and banking more accessible. Nevertheless US Hispanics still reach out in hopes of finding financial friends to help guide their finance decisions as a consumer group with a fast growing population as well as income and wealth to match.

Hispanic Consumers In Need Of Financial Services Are More Diverse Than They Appear

Banks and financial groups first need to identify that although recent efforts to improve access to their services such as bilingual employees and materials such as pamphlets and signage have been successful in improving their customer relationships with US Hispanics, unacculturated Hispanics especially, they need to hone and expedite their efforts to keep up with the rate of wealth development that the larger groups of Bicultural and Acculturated Hispanics are now experiencing. With both groups accounting for the majority of US Hispanic Millennials and in turn the bulk of the most affluent population of Hispanic consumers it’s important that banks and financial companies make efforts to guide these consumers in making financial decisions to ensure a brighter future for a clientele that will soon account for the majority of their customer-base.

There also needs to be a stronger focus and understanding of the needs of these Hispanic cultural groups due to their growing rate of affluence and influence on the US economy. Reports now indicate that 21% of new entrepreneurs are Hispanic and what’s more they alone have driven 29% of the country’s income growth since 2005. With this rise in income accumulation and decline in poverty (370,000 Hispanic households now make over $200,000 in annual income) it’s a surprising to find that this consumer group is still considered to be significantly underbanked. Although targeting a group as large as 22.7 million may seem like a daunting task the solution is quite simple, easy and effective: conversations need to be started now.

Their Needs May Vary But All Hispanic Consumers Are Eager To Connect

The only question that remains to be answered is where financial organizations need to start having the conversations to help these Hispanic consumers find the financial friends they need to make the best decisions with their wealth. Financial groups do not need to look far as trends in the financial sector mirror that of the habits and trends being seen in engaging Hispanic Millennials.

This means that the first and possibly best place to start having these conversations is through their smartphones. If they aren’t exploring a new social media platform Hispanic Millennials are also at the forefront of trying out and adopting new and innovative apps. In fact recent reports indicate that over 50% of Hispanic Millennials engage in using their smartphones for mobile-banking, at least 26% of these consumers have a financial app of any type downloaded on their smartphone and furthermore over half of these consumers check these financial and banking apps more than once a day. The only consumers in this group not adopting these tools are those who simply aren’t aware of their availability which stresses the importance and influence these simple conversations can have in building trust and empowering these consumers to make the best financial decisions.

How should these conversations begin? Financial groups need to connect with these consumers by finding a common-ground and that common-ground is understanding the culture. This requires the insight and knowledge of the Hispanic community’s growing pains in the financial sector and that means using the bilingual efforts put forth to build relationships with Hispanic consumers to use. Hispanic Millennials may be very tech savvy but they still are Millennials and Millennials still strongly value the personal connection and relationship of a mentor and coach. By bringing Hispanic employees and advice from these employees to the forefront it helps foster and build trust that can lead to lifelong relationships with these consumers. What’s more helping Hispanic consumers to find financial friends couldn’t be easier with the opportunities and tools at the disposal of banks and financial groups.

With that being said possible solutions that can be used to engage these Hispanic consumers and start a conversation include: informative videos featuring Hispanic employees explaining services and solutions in both English and Spanish, customizable alerts and notifications in English or Spanish these consumers can tailor to their needs through banking and financial apps or via email, daily advice and tips pushed through email or apps customized to help these consumers meet their unique financial goals, robust social media campaigns that create awareness of the benefits having your financial organization being viewed as a coach in helping them make the best financial decisions and investments or even simple social media efforts to raise awareness of apps your financial institution has available in order to build your connection with them if they’re always on the go. The sky is the limit in the ways banks and financial groups can become fast friends with Hispanic consumers in need of their advice.

As you can see US Hispanic consumers are both easily approachable by financial groups and are also in great need and eager to find financial friends that can help them find success to build a brighter future. All it takes is starting and having simple conversations to build up a relationship that can last a lifetime if cared for properly. All this requires is having the understanding and experience of the community’s needs which we at VRTC, Inc. can help provide as a friend and coach so you can begin to spark these conversations with your consumers and make a personal lifelong friendship with this vastly influential cultural group. Is there anything you would like to add to the conversation? If so, leave a comment and share your experience.If you enjoyed the article, share it! For further insights, discussion, or inquiries for help in sparking your own product conversations fill out our contact form or simply #AskVRTC.

Sources: MobilePaymentsToday, Nera, NerdWallet and Smart Insights
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