REAL Solutions_Hispanic Outreach Navigator_IL CU League

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REAL Solutions_Hispanic Outreach Navigator_IL CU League

  1. 1. Growing by Serving the Largest, Fastest-Growing, Youngest, and Most Underserved Community - Hispanics February 4th, 2010 © 2010 Coopera Consulting. Original information contained within this presentation is copyrighted and cannot be used without expressed written consent from Coopera Consulting.
  2. 2. Overall Objectives • Introduction to Coopera • A Credit Union Industry Perspective • Hispanic Opportunity Navigator 2 PARTNER. GROW. SUCCEED.
  3. 3. Coopera Coopera (ko – pair – a) Coopera means “cooperate” in Spanish. To cooperate - because that’s our approach in all that we do. Spanish origin - because the emerging Hispanic market is our area of expertise. 3 PARTNER. GROW. SUCCEED.
  4. 4. Coopera • Our Mission: To partner with people, businesses and communities for new economic opportunity. • We are a part of the credit union family. • We show credit unions how to do well by doing good and deliver double-bottom-line solutions. • This philosophy has allowed us to develop global, national and statewide partnerships. 4 PARTNER. GROW. SUCCEED.
  5. 5. The Hispanic Opportunity: The Largest, Fastest-Growing, Youngest, and Most Underserved Population PARTNER. GROW. SUCCEED.
  6. 6. Why Coopera? INDUSTRY CHALLENGES HISPANIC OPPORTUNITY • Membership growth • Growing population • Mergers • Significant workforce • Bank pressure participation • Aging demographics • Highly entrepreneurial • Market saturation • Young population • Weakening SEG’s • Consumer power is booming • Exploding fringe providers • Largely unbanked 6 PARTNER. GROW. SUCCEED.
  7. 7. The Coopera Approach PARTNER. GROW. SUCCEED.
  8. 8. Common Missteps – Above Surface • Assumption that translated materials, bilingual personnel, and marketing will be enough • The right identification policies but not enough understanding/training about why they are important and about their implications • Assumption that translation of existing English materials would be appropriate for this market • Spending more money on media buys and advertising than on financial education, partnerships and outreach • Relegation of initiative to one or several individuals • Paralysis by analysis • Ignoring the implications of immigration • Top-down buy-in does not exist or is seen as lip service • Desire for a “light-switch” solution 8 PARTNER. GROW. SUCCEED.
  9. 9. Common Objections – Below Surface • “Hispanics should just learn English.” • “We have translated all of our materials – that should be enough to attract Hispanics.” • “Hispanics are low-income – they will be a drain on our bottom line.” • “Hispanics are undocumented – they will cause compliance and risk issues when they get deported.” • “We will alienate our existing membership.” • “Our members think our products are great. Hispanics must not have a need for them, because they are not using them.” • “We know that we are not serving Hispanics well, but we won’t target them specifically because we don’t target any group exclusively.” • “We have had that policy for years.” • “We don’t do community outreach because we need everyone working in our branches.” • “We only provide deposit, loan, and investment products – not those other products Hispanics use when they are at a check-casher.” • “Hispanics should just go back to their country.” • “This is not a market I know anything about so this initiative has nothing to do with me.” 9 PARTNER. GROW. SUCCEED.
  10. 10. The Coopera Approach 1. The right organizational mentality – Philosophy – Investment 2. Adapt to the market – Personnel – Products – Processes – Promotion/Marketing 10 PARTNER. GROW. SUCCEED.
  11. 11. The Coopera Approach ESTABLISHED The Destination The CU is a Unique Traveler Unique Conditions A Similar Road BRAND NEW 11 PARTNER. GROW. SUCCEED.
  12. 12. The Coopera Approach Coopera is the Tour Guide 12 PARTNER. GROW. SUCCEED.
  13. 13. The Coopera Approach MARKET SHARE FINANCIAL EDUCATION RIGHT MENTALITY ADAPTED TO MARKET 13 PARTNER. GROW. SUCCEED.
  14. 14. Results in 2.5 Years of Work PARTNER. GROW. SUCCEED.
  15. 15. Client Success Coopera Portfolio Clients with 2-year Client Tenure Workforce Average Bilingual/Bicultural Employee Workforce as % of All Employees 21% Membership Hispanic Members General Members Average Hispanic Membership Growth Compared to General Membership Growth 132% -1.89% Average Hispanic Member Share Deposit Growth Compared to General Membership 179% 47.68% Average Hispanic Loan Volume Growth Compared to General Membership 313% -9.70% 15 PARTNER. GROW. SUCCEED.
  16. 16. Client Success • Hispanics Receiving Dignified Financial Services: Client credit unions successfully serving thousands of new Hispanic people • Credit Unions Will Always Be Looking to Improve: All have made it a strategic priority • Return on Investment: Attribute success to Coopera’s assistance in helping them do it right and get results more quickly • Credit Union Awareness: These credit unions dominate Iowa’s Spanish media, but their stories are not very well-known by mainstream media • Market Share: Bank employees are sending their clients to credit unions 16 PARTNER. GROW. SUCCEED.
  17. 17. Partnerships 17 PARTNER. GROW. SUCCEED.
  18. 18. Service and Product Lines –Hispanic Opportunity Navigator The Right Mentality –Strategic Planning/Consulting/Coaching –Strategic Planning/Consulting/Coaching Adapt to the Market –Education and Training –Translations –Hispanic Consumer Products 18 PARTNER. GROW. SUCCEED.
  19. 19. Financial Education www.CooperaConsulting.com http://finlit.cuna.org/tuyo.html 19 PARTNER. GROW. SUCCEED.
  20. 20. Service and Product Lines 20 PARTNER. GROW. SUCCEED.
  21. 21. The Hispanic Opportunity Navigator PARTNER. GROW. SUCCEED.
  22. 22. Hispanic Opportunity Navigator 22 PARTNER. GROW. SUCCEED.
  23. 23. Hispanic Opportunity Navigator 1. Demographic Market Scan 2. Competitive Market Scan 3. Cultural Score 4. Analysis of Current Hispanic Membership 5. Branch Analysis 6. Credit Union Stage 7. Needs Assessment – Groundwork and 4P’s 23 PARTNER. GROW. SUCCEED.
  24. 24. Demographic Market Scan 389,562 Hispanic Households within Field of Membership 1,636,159 Hispanics within Field of Membership PARTNER. GROW. SUCCEED.
  25. 25. Competitive Market Scan There are 172 Money Service Businesses in Field of Membership. PARTNER. GROW. SUCCEED.
  26. 26. Cultural Score PARTNER. GROW. SUCCEED.
  27. 27. Hispanic Member Analysis Members Avg Age Median Age Avg yrs at CU Median yrs at CU % 27 PARTNER. GROW. SUCCEED.
  28. 28. Branch Analysis 28 PARTNER. GROW. SUCCEED.
  29. 29. Credit Union Stage Is considering a Hispanic outreach initiative Would like more information about the opportunity in serving the Hispanic market Discovery Does not know where to start but has a growth mentality and the will to succeed May have some limited unintentional experience with the Hispanic community May have “dipped their toe in the water” with some disparate ad hoc initiatives As a whole, recognizes the philosophical and business imperative of serving Hispanics Has put in place a vast majority of groundwork and foundation-building steps that help the credit union adapt to the market instead of waiting for the market to adapt to the credit union Is comfortable with serving Hispanics as a method for inclusion and maintains strong member service Emerging among all members Is looking for new/fresh ideas and has a growth mentality Has established sustainable success, however has not emerged to a place of dominance within their local Hispanic market. Has successfully served the Hispanic market for years Has captured more than their proportional market share of Hispanic members Is widely considered a preferred financial institution within the local Hispanic community Best Practice Is regarded as a best practice within the industry Continues to provide superior service to all members and maintains an innovative culture poised for growth 29 PARTNER. GROW. SUCCEED.
  30. 30. Needs Assessment – Groundwork and 4 P’s Groundwork T1 Board of directors has, collaboratively with management, Complete a comprehensive strategic plan on an annual basis. Review collectively as a management developed a strategic plan with milestones and goals for group and with board of directors on a quarterly basis. Engagement of board members is as important as serving Hispanic populations gaining their buy-in, because it will help them become champions of the initiative. Personnel T1 All employees are trained on the business case for serving All staff should be trained on the Hispanic opportunity. New employee orientation should also leverage Hispanics Coopera's training expertise and include information about the business case including the Hispanic opportunity and the extent to which the Hispanic market is underserved. Products T1 Credit union provides special purpose loans to pay for Quinceañeras are traditional celebrations in the Hispanic community that are often costly. Repackaging an quinceañera expenses. existing personal loan to meet this need would be appealing to this market. Processes T1 Credit union tracks language preference, place of birth, Utilize appended data resources available through Coopera and commit to a regular schedule of and income of members while maintaining anti- measurement of progress. discriminatory practices Promotion and Marketing Strategy T1 Credit union has developed a marketing plan to reach While Hispanic outreach is a part of the credit union’s overall marketing plans, a specific marketing plan Hispanic populations should be developed emphasizing word of mouth and grassroots strategies to reach primary and secondary targets. Print Collateral, Advertising, Signage T1 Relevant signage uses culturally relevant images and Not all relevant signage has been translated including bilingual branch hours posted on doors, patriot act messages requirements and NCUA signs. Web Site/Technology T2 Credit union has a culturally relevant Spanish Web site The credit union does not have a Spanish Web site. Location 30 T1 Branch is children-friendly and is relevant to Hispanic PARTNER. GROW. SUCCEED. More can be done at the Denison and E. Des Moines branches to create a welcoming environment for children Hispanic children. Consider having a children’s area with English and Spanish materials such as coloring books and financial education materials.
  31. 31. Progress of a Credit Union Consulting and Coaching on 4 P’s HON YEAR 1 Staff Training Strategic Planning 31 PARTNER. GROW. SUCCEED.
  32. 32. Thank you. ¿Preguntas? www.CooperaConsulting.com © 2010 Coopera Consulting. Original information contained within this presentation is copyrighted and cannot be used without expressed written consent from Coopera Consulting.

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