Reaching and Serving Hispanics in the Alternative Financial Industry



Printer Friendly Graphic About 56 million Americans do not have a banking relationship. Fifty percent of that figure is comprised of Hispanics and they spend an estimated ten billion dollars annually on non banking services. This includes check cashing, money wiring, prepaid cards, bill payments and money orders. According to Blaire Borthayre, author of Marketing to Hispanics: A Guide for the Alternative Financial Service Industry, there is an unfair perception that all of the alternative services are predatory. As an Hispanic advocate, I educated and preached about the importance of bank accounts for years until I finally realized that sometimes unbanked clients have reasons for remaining unbanked that go beyond lack of information.

Some of the reasons include fear of the bank questioning their immigration status, no Spanish speakers on staff, and lack of sufficient funds to open and maintain an account. As I began looking into the alternative financial services industry, I realized that I was stereotyping the entire industry based on what I had heard. What I found was a much more regulated business that is providing services to people who would be turned away by others. Are there unscrupulous companies Sure and that is true in every consumer based business but you cannot brand an entire industry based on those companies.

This realization led Borthayre to write her latest book in an effort to assist this industry in providing bilingual and bi-cultural services effectively. In my work, I found Hispanics were turned away from banks because the bank did not accept the Matricular Consular (ID issued by the Mexican Consulate widely accepted in the United States) or were unfamiliar with an ITIN. (Individual Identification Number issued by the IRS for those not eligible for a social security number). Foreign born Hispanics reported needing services on weekends when banks were closed as well as being intimidated by the formal atmosphere in many banks. It was also an extreme hardship for most to wait three days for a check to clear when bills needed to be paid right away.

As a believer in social and economic justice for foreign born Hispanics, I want to educate but not infantilize people, says Ms. Borthayre. Our job is not to force people to live as we would. In the end, Hispanics get to make their own informed choices, so why not help the alternative financial industry reach and serve this customer more effectively Industry leader Ace Cash Express has already bought the book in bulk to distribute among their franchisees as they focus on ensuring that the Hispanic market understands their services and experiences a welcoming environment.

Marketing to Hispanics: A Guide for the Alternative Financial Industry by Blaire Borthayre covers recruiting and hiring bilinguals, culturally appropriate customer service, effective marketing strategies, demographics and translations. ISBN 0-9761957-9-8
TRC Publishing, August 2006 $34.95

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Reaching and Serving Hispanics in the Alternative Financial Industry