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Industry experts are touting the Hispanic (or Latino*) market as one of
the most important strategic opportunities facing financial
institutions today. To grasp the importance of this market and the
effect it could have on the financial industry, all one has to do is
look at the numbers. Hispanics are the largest minority and the fastest
growing consumer group in the United States. The rate of growth for the
U.S. Hispanic population is outpacing the general growth rate by a
ratio of nearly 5 to 1. By 2010, the U.S. will be home to 50 million
Hispanics, who will command buying power in excess of $1 trillion. By
2050, the U.S. Hispanic population will exceed 100 million, which means
that one in every four Americans will be Hispanic.
Perhaps the most significant attribute of this population, for
financial institutions, is the fact that roughly 56 percent of U.S.
Latinos are currently "unbanked." Whereas other market segments are
nearly saturated, the Latino market remains largely untapped by the
financial industry. It's easy to understand why an increasing number of
financial institutions are turning their attention to the Latino
market. The upward trajectory of these trends has given rise to
projections of dramatic growth in the Latino demand for financial
products and services. The FDIC predicts that Hispanics will account
for 50 percent of all retail banking growth over the next two decades,
and according to TowerGroup, that number could be as high as 70 percent
over the next five years.
It's important to note, not just the growth, but also the changing
composition of the Hispanic population. Presently, Hispanics account
for 13.7 percent of the total population. The new dynamics of the
Hispanic market hinge on the emerging second and third generations,
differences between those who are foreign-born and those who are native
to the U.S., and movement of Hispanics into regions of the U.S. where
previously there have been relatively few Hispanics.
Full Story: Hispanic Bank Marketing
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