• by Karla Fernandez Parker , Columnist, June 9, 2025

The Latino population in the United States has grown to 65 million, accounting for roughly 20% of the total U.S. population. Latinas are becoming key drivers of wealth generation for this vital cohort, marking a significant shift.

 According to the Morgan Stanley Latino Wealth Report, younger Latinos are building wealth in stocks and bonds, not just real estate, unlike their parents. Many people do it alone with online investing, although they tend to engage financial advisers more than their parents. However, knowing a financial adviser and receiving the right financial advice—in one's own language and culture—are entirely different. The report also highlighted the limited access to financial education and mentoring networks enjoyed by other ethnic groups with a history of generational wealth. As would be expected, trust is a key issue when investing in something intangible, such as real estate.

Despite some of these barriers, the two underlying currents driving the rise in Latino wealth generation are entrepreneurship and educational attainment, with Latinas playing a significant role in both.  Latinos are creating new businesses at a rate faster than any other group in the U.S.—doubling their representation in the overall population, with 36% of all businesses started in 2023 (McKinsey & Company). In total, 4.7 million Latino-owned businesses have formed in the U.S., generating $800 billion in annual revenue. However, the number of Latina-owned businesses is increasing even more rapidly within this cohort.

According to the most recent census, the data indicate that Latina majority-owned firms grew by more than 682,000, or 87%, during the last five-year period. Latinas are also advancing significantly in attaining bachelor’s degrees. In the two decades from 2000 to 2021, according to Pew Research, Latinas completing an advanced degree increased by 291% versus 199% for Latinos. Today, approximately 23% of Latinas hold a bachelor’s degree and are employed in higher-paying careers.

Given that Latinos are significantly younger than the overall U.S. population, our nation's future growth will depend considerably on their ability to establish and sustain successful businesses, pursue advanced education, and build generational wealth. Companies in the financial services sector have a significant amount of work ahead of them, as this segment continues to be underbanked, pays more for loans, requires credible financial guidance, and lacks a mentorship network. This tremendous growth opportunity presents a compelling case for the financial services sector to invest in building strong and trusted relationships with the Latino community, partnering with the right organizations, and fostering a business culture that understands Latino culture to help their households and businesses thrive. And in the end, it all comes back to trust and relationships.

One such example of “doing it right” is PNC Bank. The company offers a program called Women in Business that provides business support and financial acumen through a team of over 4,800 advocates, a suite of financial literacy resources for building wealth, and stories from successful women in business. They have built a program that is local, actionable, and supportive of women in business, including Latinas. It’s worth the proof of concept.