Walk into a bank or credit unions these days and you are increasingly likely to find yourself greeted by posters in Spanish, or in some cases even wall murals depicting Hispanic culture.  Such symbols are a pragmatic recognition by financial institutions of the growing economic empowerment of Latinos in the United States.

But even as deposits by America’s Hispanics increase exponentially, financial education for them about prudent money-management is woefully lacking.

I believe that institutions that reach out to America’s Latinos in offering basic financial education services will find that gesture rewarded with both customer loyalty and greater deposits.

The fact is, Hispanics are now not only America’s largest minority group, they are also America’s fastest growing minority group.  Hispanics consumers in America currently spend nearly $500 billion dollars a year.  That’s not chump change.

It is important to understand the barriers that sometimes prevent Hispanics from taking full advantage of America’s good financial institutions.

So as my Christmas present to America’s financial institutions, I offer this primer, in the form of a list of suggested small operational changes that can help secure the trust and loyalty of Hispanic depositors.

Clearly, one of those barriers is language.  It is difficult for those who struggle with English to have the self-assurance to open an account and discuss financial transactions when that conversation is more likely to lead to confusion than to certitude.  Imagine yourself trying to open a bank account in Paris with only halting knowledge of French.  So the first request to financial institutions on my Christmas list is to try to ensure there is at least one person trained to speak Spanish in any branch of your institution.  

Another barrier is trust.  Long faced by usury rates for wire transfers and a sad history of exploitation in financial affairs, many Hispanics are slow to hand over to the wages of their hard-earned labor to institutions that have an impersonal remoteness and un-reassuring environment.  So the second request on my Christmas list is for financial institutions to design remittance and deposit programs that take into account the unique needs of their Hispanic clients…and advertise those programs in a welcoming way.

Another barrier is knowledge of basic finance.  True, many Hispanics have risen to positions of great wealth and influence in American society…lawyers, CEO’s, major league baseball players and even Presidential counselors.  But many more also perform lower-paying jobs that are nonetheless essential to keeping the wheels turning in the machinery that moves America:  They help raise our children. They cook the food we eat in restaurants.  They lay the tile in our kitchens and shingle the roofs of our homes.  They harvest the crops we buy in stores every week.  And yet, many have never received even the most basic education in money management.  So the third request on my Christmas list is for financial institutions to offer and promote classes aimed at teaching the average Hispanic worker about interest rates, savings accounts, the power of compounding interest, how to analyze safe and higher-risk investments and when to choose which, and all the myriad methods of creating personal wealth.  Financial institutions have a vested self-interest in implementing such policies.

When I worked with President Fox’s Office running the Office of Migrant Affairs, I issued a regular report on institutions that were leading the way in offering competitive rates for wire transfers to help hard-working Mexican Americans and Mexican migrants get money to their families.  My goal was to let America’s Hispanics know who their friends are.

Through my partnership with the Texas League of Credit Unions and the Credit Union National Association, I am now making available to financial institutions advice and guidance on how to improve their services to America’s newest, fastest growing economic power block, Hispanics.  Contact me through my website, and learn how together we can create a Christmas gift for America’s Hispanics that gives for a lifetime:  The knowledge that leads to financial security and independence.