• by Stephen Paez , Op-Ed Contributor, December 20, 2023

It’s no secret that the Hispanic consumer population is an enormous and growing force. According to the latest U.S. Census, we saw – for the first time ever – a decline in the non-Hispanic white population. Meanwhile, with 64 million Hispanics living in the U.S. –we are a population that represents the 5^th largest GDP if it was a standalone country.  

When you think about the opportunity this presents marketers, there are many inroads. Specifically in the financial services sector, which is a largely untapped area when it comes to greater personalization, in-language services, and customized mobile app experiences. 

Recently, we partnered with Adsmovil and ThinkNow to explore Hispanic consumer preferences and behaviors across the financial journey and uncovered a few key insights that can help guide brands looking to connect with Hispanic consumers in this arena – drawing on their early adopter status in digital, close connection with their family and desire for better financial experiences. 

Here's what we learned: 

Less Focused on Bank & Physical Amenities

Overall, we saw that Hispanics are less trusting of their financial institutions and feel undervalued as customers compared to their non-Hispanic counterparts. They’ve been with their banks for less time – or started banking later in life – than non-Hispanics. When choosing a financial institution, they also have a reduced emphasis on certain amenities, such as friendly tellers. 

Hispanics are also less likely to have mortgages or investments, and have overall financial anxiety about job security, home ownership and assisting family, vs. non-Hispanics who more focused on retirement and high interest rates. 

Living in a bicultural world, heritage in banking trust is important. The consumer journey has not been created with Hispanics in mind, contributing to an overall lack of trust in institutions. Brands who want to be successful in building loyalty with Hispanic consumers need to have a relevant customer journey that considers Hispanic preferences and behaviors. Ensuring that communications strategies are built on culturally-relevant insights and in-language, as well as promoting the security that a banking relationship provides across product categories, are imperatives. Dual language, evergreen campaigns throughout the year can help create a memorable and impactful community presence. 

Mobile Banking Power Users

Hispanics exhibit a higher propensity for utilizing mobile banking services – with 59% of Hispanic respondents citing a preference for mobile banking and only 14% for physical banks. They opt for online or mobile banking more than non-Hispanics and they are considered power users, engaging in activities from checking account balances to making payments to transferring funds to people and conducting interbank account transfers. 

For financial institutions, building that connectivity between online and physical locations will be key. Having personnel in physical locations that mirror the Hispanic consumer, both linguistically and culturally, would be a welcome benefit. Online, continuing the consumer journey with a culturally-relevant guide or character that assists the consumer through banking activities, via chat or a toll-free Spanish call center, would be a huge win. Closing this gap between online and offline will go a long way in informing the holistic Hispanic brand experience, as we’re seeing more Hispanic consumers visit a brand’s owned destinations directly for more information versus using search. 

Hispanic Collective Reigns Supreme

In our past studies, we’ve learned about the powerful dynamic of the Hispanic Collective – making purchasing decisions as a family unit across a tightknit group of family and friends. This consumer segment continues to look to their relatives and parents as trusted sources of information and younger Hispanics are often helping research a variety of recommendations for their families online. Further, many are also supporting relatives both domestically and internationally. 

Financial brands can create inroads by creating functional ways for money to be sent domestically and internationally, as well as by having a dual language app that addresses the needs of the community with relevant features and functionality across the language spectrum. 

Social Media & UGC Guiding Decisions

It’s evident Hispanic consumers are yearning for more in-language content as they’re tuning into more social and user-generated content sources across YouTube, social networks and podcasts. 

When looking for information on financial institutions, they’re more likely to use YouTube, podcasts, or a bank or retailer’s website. Brands who leverage influencers, have a strong presence across social networks and user-generated content, as well as a solid brand website, will be able to capture the attention of Hispanic consumers looking for financial services or offerings. 

Overall, this demographic holds enormous potential for marketers and should be approached with community, authenticity, and compelling content in mind. The Hispanic Collective has the potential to build and create loyalty among their nearest and dearest for years to come.