Posted by Elena del Valle on June 2, 2010
Opening the Door with Relevant Products and Services Part Two (click here to read Part One)
By Ricardo Quayat
Executive Creative Director, Rauxa Roja
Ricardo Quayat, executive creative director, Rauxa Roja
Photo: Rauxa Roja
In Part One of Unleashing the Financial Purchasing Power of the Growing U.S. Hispanic Population (click here to read Part One), Ricardo Quayat discussed recognizing the huge potential of the vast Hispanic market and how to use data, creative and brand strategies to market to this promising audience in a meaningful and actionable way. Part Two explores cultural differences that affect the Hispanic consumer and how banks and financial institutions can effectively tap into this rapidly growing and financially sound market with relevant messages, products and services.
In Mexico, and South and Central America, banks employ practices that are unique to their specific regions, capitalizing on how locals save money, buy products and pay bills. Evaluated against standard banking models in the U.S. however, Latinos are turned away in many instances because conventional credit platforms may not reflect the credit worthiness the bank requires, creating a missed opportunity.
For example, payment plans with routine installments are a common purchasing method in Latin American countries, where it is preferred to have a predictable monthly responsibility. These may be personal agreements and traditional credit programs – commonplace in Latin America, but ineffectual in establishing the stability and sound payment records typically verified using traditional credit scoring methods.