FINANCIAL SERVICES AND HISPANIC CONSUMERS (Sept 2015)

Product Mix

Branches, PC, and Mobile

Marketing and Communication Strategies

Key Finding from a Previous SYNERGISTICS Research Survey:

Results from the 2007 SYNERGISTICS Hispanic Market Monitor revealed that slightly more than one-quarter of Hispanic respondents reported usage of PC banking and less than one-fifth indicated usage of mobile banking.  To what extent has usage of these popular channels increased among this group of consumers?

F235 Prop Graphic

Highlights of the Study

This study examines the attitudes and financial services profile of the Hispanic market.  The report also examines issues related to usage of delivery channels and marketing financial services to this growing segment.

Financial Services and Hispanic Consumers is SYNERGISTICS sixth study examining the Hispanic market.  Where possible, comparisons with previous surveys will be made to provide an historical perspective.

National Internet Survey – 1,000 online interviews – 800 with self-identified Hispanic consumers conducted in Spanish or English based on respondent preference. For comparison purposes, a control group of 200 interviews with Non-Hispanic consumers will also be included.

Key Dates

June 26, 2015 — Charter fee/Intro pricing ends.
June 26, 2015 — Final acceptance of comments on questionnaire.
September 2015 — Project Report available.

Strategic Questions

  • What implications do the attitudes and expectations of Hispanic consumers – toward financial institutions, their own economic status, and future financial needs and goals – have for financial marketing objectives and strategies?
  • What is the financial profile of Hispanic households in terms of relationships with financial providers, adoption of depository products, and usage of credit services? Are there barriers to adoption that providers should address to better meet the needs of this market? What criteria are important in selecting a financial provider?
  • How extensive is payment card usage – including credit cards, debit cards, and prepaid cards – in the Hispanic market? Do patterns of usage indicate preferences that providers should market toward?
  • What financial information and activity channel patterns exist among Hispanic consumers – encompassing branch visits, ATM usage, call center contacts, and online and mobile banking activities? What is the potential for advanced mobile applications – such as RDC, contactless payments, and P2P payments – in this market?
  • How widespread is usage of alternative providers and services such as check cashing facilities, short-term lenders, and money transfer services among Hispanic households? Should traditional providers attempt to meet these needs?
  • What marketing channels are preferred by Hispanic consumers for obtaining information on financial accounts and services? How important is it to use Spanish in advertising, at branches, and on websites?  Does social media have an important role in reaching Hispanic customers?
  • How should Hispanic consumers be segmented and approached by financial providers?  Are standard demographic and behavioral measures appropriate?  Do varying levels of acculturation provide a basis for developing different marketing strategies and tactics?

Research Issues

  • As the Hispanic market continues to expand it becomes an increasingly important market segment for financial institutions.  Not only is this group growing, but it is also evolving.  Emerging generations are increasing in affluence and measures of acculturation.  Even so, a significant proportion remains under-banked and is using alternative providers.
  • Their reputation for brand loyalty makes Hispanic consumers marketing ‘gold.’  Industry experts point out that this segment tends to stick with a brand they have confidence in and has made an effort to serve their needs.  How loyal are Hispanic consumers to financial institutions and how will this impact account acquisition, retention, and share shifting?  How do you reach this important segment?  Do they respond to traditional marketing channels or do they display a particular affinity for methods beyond direct mail?  Does social media represent a viable channel for connecting with this market? Does language play an important role in marketing strategies for the Hispanic segment?
  • Are they remote channel users or heavy branch users? It is important to examine the attitudes and financial services profile of the Hispanic market, as well as their usage of a variety of channels. With this information, financial services providers will be able to develop and fine-tune strategies for capturing and retaining their share of the growing and evolving Hispanic market. [F235]