Why should credit unions focus on the Hispanic/Latino market?
It’s good business. In the past 10-plus years, this market has doubled in size. Nationally, they represent nearly 14% of the population. They are the nation’s largest and fastest-growing minority group. The Hispanic population is relatively young, with 48% less than 25 years of age (compared with only 32% of non-Hispanic Whites). Traditionally, a credit union’s strongest borrowers are members ages 25 to 44. The percentage of members in this strong borrowing age group has been dropping over the past decade, according to CUNA’s 2002 National Member Survey. Credit unions will need to increase penetration of youth and young adults to reverse this trend, and Hispanic youth have large, untapped potential. It is consistent with good credit union philosophy to serve this market. Credit unions have a long history of providing high-quality, low-cost financial services to members. The growing population of Latinos/Hispanics should have the opportunity to benefit from credit union services.
