Consumer groups underserved by the financial services industry present many opportunities for organizations willing to pursue these markets. The Hispanic market, in particular, has largely been untapped in the U.S. On a recent podcast, I sat down with Miriam De Dios, CEO of TMG’s sister company Coopera, to discuss how fintech companies are tailoring their offerings to improve the financial lives of Hispanic consumers.
Miriam, recently named a Credit Union Times 2016 Woman to Watch, described how mobile technology is particularly appealing to Hispanics. Historically, the Hispanic market has been over-indexed on things like smartphone adoption, mobile banking usage and social network engagement. For many of these consumers, mobile is a more cost effective option than traditional broadband or WiFi at home.
During our discussion, Miriam confirmed my suspicion that this fondness for mobile extends to banking. In fact, one study found 65 percent of U.S. Hispanics (compared to 53% of non-Hispanics) checked their bank balance, made transactions and paid bills using their mobile device at least once a week – and that was two years ago. It seems very likely this number has climbed since then.
Fintech companies, like Fintonic and Clip, are beginning to recognize the potential Hispanic markets hold when it comes to embracing alternative financial solutions. Miriam noted how Hispanic consumers may be more comfortable using non-traditional payment methods like Facebook or Venmo to complete transactions than non-Hispanic consumers.
Whether traditional or not, financial services providers that adapt their lending products to the Hispanic marketplace also face great growth potential. Small businesses are quite prevalent among Hispanic communities. Owners of these business may lack the credit history and resources necessary to obtain loans. Miriam referenced Camino Financial as one of the alternative lending resources Hispanics can turn to. Perhaps other fintech startups will soon start developing Hispanic-oriented offerings.
To hear more from Miriam, take 15 minutes to listen to “Fintech and the Influential Hispanic Market.”
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