Market Trends: Hispanic-Americans and Financial Services

• 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