U.S. Financial Institutions Banking on the Untapped Hispanic Market

Mintel reports that numerous opportunities exist for financial institutions within the U.S. Hispanic community CHICAGO (April 29, 2005)— Almost half of Hispanic adults do not own checking accounts, according to a recent report on Hispanics and Finance from Mintel International Group. With more than $414.2 billion in buying power reported in 2003, the Hispanic community provides strong opportunities for economic development and growth. According to Mintel, the majority of survey respondents without checking accounts cite lack of money, trust, and documentation as key obstacles. Many Hispanics also substitute checking accounts by paying with cash and money orders. Since Hispanics are the largest minority group in the U.S., many financial institutions are increasing their advertising and marketing budgets. In 2004, several banking institutions began to target the Hispanic community more heavily. According to Mintel’s Comperemedia, a direct mail research entity, companies such as Bank of America and Bank One increased efforts in Hispanic marketing last year with major campaigns.