real solutions_hispanic outreach navigator_il cu league

© 2010 Coopera Consulting. Original information contained within this presentation is copyrighted and cannot be used without expressed written consent from Coopera Consulting.

Growing by Serving the Largest, Fastest-Growing, Youngest, and Most Underserved Community - Hispanics

February 4th, 2010

PARTNER. GROW. SUCCEED.PARTNER. GROW. SUCCEED.

• Introduction to Coopera

• A Credit Union Industry Perspective

• Hispanic Opportunity Navigator

Overall Objectives

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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.

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• 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.

Coopera

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The Hispanic Opportunity: The Largest, Fastest-Growing, Youngest, and Most Underserved Population

PARTNER. GROW. SUCCEED.


Why Coopera?

INDUSTRY CHALLENGES• Membership growth• Mergers• Bank pressure• Aging demographics• Market saturation• Weakening SEG’s• Exploding fringe providers

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HISPANIC OPPORTUNITY• Growing population• Significant workforce

participation• Highly entrepreneurial• Young population• Consumer power is booming• Largely unbanked

The Coopera Approach



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

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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.”

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1. The right organizational mentality– Philosophy– Investment

2. Adapt to the market– Personnel– Products– Processes – Promotion/Marketing

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BRAND NEW

ESTABLISHED

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A Similar Road

Unique Conditions

The CU is a Unique Traveler

The Destination



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Coopera is the Tour Guide



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RIGHT MENTALITY

ADAPTED TO MARKET

MARKET SHARE

FINANCIAL EDUCATION

Results in 2.5 Years of Work



Client Success

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WorkforceAverage Bilingual/Bicultural Employee Workforce as % of All Employees 21%

Membership Hispanic Members General MembersAverage 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%

Coopera Portfolio Clients with 2-year Client Tenure


• 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

Client Success

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Partnerships

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Service and Product Lines

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–Hispanic Opportunity Navigator–Strategic Planning/Consulting/Coaching

–Strategic Planning/Consulting/Coaching–Education and Training–Translations–Hispanic Consumer Products

The Right Mentality

Adapt to the Market


Financial Education

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www.CooperaConsulting.com

http://finlit.cuna.org/tuyo.html


Service and Product Lines

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The Hispanic Opportunity Navigator



Hispanic Opportunity Navigator

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Hispanic Opportunity Navigator

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1. Demographic Market Scan2. Competitive Market Scan3. Cultural Score4. Analysis of Current Hispanic

Membership5. Branch Analysis6. Credit Union Stage7. Needs Assessment –

Groundwork and 4P’s

PARTNER. GROW. SUCCEED.PARTNER. GROW. SUCCEED.389,562 Hispanic Households within Field of Membership

1,636,159 Hispanics within Field of Membership

Demographic Market Scan

PARTNER. GROW. SUCCEED.PARTNER. GROW. SUCCEED.There are 172 Money Service Businesses in Field of Membership.

Competitive Market Scan


Cultural Score


Hispanic Member Analysis

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Members Avg Age Median Age Avg yrs at CU Median yrs at CU %


Branch Analysis

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Credit Union Stage

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Is considering a Hispanic outreach initiativeWould like more information about the opportunity in serving the Hispanic marketDoes not know where to start but has a growth mentality and the will to succeedMay have some limited unintentional experience with the Hispanic communityMay 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 unionIs comfortable with serving Hispanics as a method for inclusion and maintains strong member service among all membersIs looking for new/fresh ideas and has a growth mentalityHas established sustainable success, however has not emerged to a place of dominance within their local Hispanic market.

Has successfully served the Hispanic market for yearsHas captured more than their proportional market share of Hispanic membersIs widely considered a preferred financial institution within the local Hispanic communityIs regarded as a best practice within the industryContinues to provide superior service to all members and maintains an innovative culture poised for growth

Discovery

Emerging

Best Practice

PARTNER. GROW. SUCCEED.PARTNER. GROW. SUCCEED.30

Groundwork

T1 Board of directors has, collaboratively with management, developed a strategic plan with milestones and goals for serving Hispanic populations

Complete a comprehensive strategic plan on an annual basis. Review collectively as a management group and with board of directors on a quarterly basis. Engagement of board members is as important as 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 Hispanics

All staff should be trained on the Hispanic opportunity. New employee orientation should also leverage 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 quinceañera expenses.

Quinceañeras are traditional celebrations in the Hispanic community that are often costly. Repackaging an existing personal loan to meet this need would be appealing to this market.

Processes

T1 Credit union tracks language preference, place of birth, and income of members while maintaining anti-discriminatory practices

Utilize appended data resources available through Coopera and commit to a regular schedule of measurement of progress.

Promotion and Marketing

Strategy

T1 Credit union has developed a marketing plan to reach Hispanic populations

While Hispanic outreach is a part of the credit union’s overall marketing plans, a specific marketing plan 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 messages

Not all relevant signage has been translated including bilingual branch hours posted on doors, patriot act 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

T1 Branch is children-friendly and is relevant to Hispanic children

More can be done at the Denison and E. Des Moines branches to create a welcoming environment for Hispanic children. Consider having a children’s area with English and Spanish materials such as coloring books and financial education materials.

Needs Assessment – Groundwork and 4 P’s


Progress of a Credit Union

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HON

Staff Training

Consulting and Coaching on 4 P’s

Strategic Planning

YEAR 1

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.

real solutions_hispanic outreach navigator_il cu league

Documents

coopera approach coopera

coopera consulting

coopera approachpartner

products hispanics

emerging hispanic market

surface hispanics

years of work partner

market education