Financing the Hispanic-American Business Owner
The toll of the Great Recession on the national economy and individual households has been well-documented.
Today many aspects of our national economy are thriving, but the recovery for low-income and Latino families has been slower.
Record-high foreclosure rates and persistent unemployment have drained personal savings and increased people’s debt. This has rocked household balance sheets and caused many Latinos to fall out of the banking system.
According to the FDIC, the unbanked rate for Hispanic households was 19.3%, compared to 7.7% for the population overall in 2009. Since then, unbanked rates have declined for Latinos, down to 16.2% by 2015.
There are many reasons why households remain unbanked. Some are identified in the FDIC National Survey of Unbanked and Underbanked Households, and are reinforced by UnidosUS research, such as privacy, fee transparency, and predictability.
The good news is that many Latino and consumer organizations have been working in partnership with financial institutions to provide safe, affordable and accessible banking options for hispanic-american business owners, case in point is LendrzHub with it's EASY-Apply® by LendrzHub program. Such fruitful program has resulted in a model option that has accelerated the approval rates to hispanic-american owned businesses.
Going Beyond Products To Attract Hispanic Consumers
There are many driving factors behind why consumers choose a particular financial institution, beyond the product offerings. Our research shows that Hispanic consumers want to bank where they feel welcome and where they find bilingual staff who are familiar faces from the community.
The tradeoffs that families make to manage their financial lives are many. Stay tuned for new focus group research this summer that will continue to explore what Latino consumers are looking for in a lending relationship and how fintech companies can deliver both quality products and services.