Academic journal article ABA Banking Journal

Mining the Latino Market

Academic journal article ABA Banking Journal

Mining the Latino Market

Article excerpt

El Banco uncovers significant revenue from a segment most banks ignore.

Where will your bank find its revenue growth in the coming years? If population trends are one criteria, you may be looking to the Latino market. The Latino population was up 70% from 1990 to 2000 and increased another 9.8% since, surpassing blacks as the U.S.'s largest minority group. With 39 million potential customers with purchasing power in the neighborhood of $800 billion who spend a total of $30 billion on basic financial services alone, the Latino market is a force to be reckoned with.

To help banks capitalize on this emerging revenue opportunity, Nuestra Tarjeta de Servicios, Inc., (NTS), a three-year-old Atlanta company that is partially owned by $23 billion National Commerce Financial Corporation of Memphis, Tennessee, is showing them how to tap into and serve the growing Latino market. NTS's El Banco de Nuestra Comunidad[R], now being successfully piloted in several cities, is designed specifically for this market.

El Banco is a new kind of financial institution, one that bridges the gap between the traditional banking environment and the world of storefront currency exchanges-where "the unbanked" Latino is currently purchasing financial services. NTS describes El Banco as "the only scalable, licensable Latino financial services model in the industry."

The El Banco concept is designed to appeal to Latino customers from floor to ceiling, with bright color schemes, Spanish-language newspapers, lively Latin music, comfortable sitting areas, children's play areas, snacks, telephones, email stations and, of course, Spanish-speaking bank employees (many of whom don't speak English at all). …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.