Arrowhead federal credit union

CUs Outline Hispanic Outreach

INITIATIVES

To better understand how credit unions are serving the Hispanic market, the Credit Union National Association's (CUNA) Hispanic Task Force recently met with a group of credit unions that offers successful outreach programs. The task force learned about potential models other credit unions can consider.

One model working effectively in North Carolina involves establishing a credit union to serve primarily or exclusively Hispanics. The credit union relies on partnerships among large and small credit unions, local community groups, and government agencies.

"It's important to find dedicated individuals who are motivated for the right reasons," advises Martin Bakes, CEO of Self-Help Credit Union, Durham, N.C.

Self-Help partnered with State Employees Credit Union in Raleigh to offer financial and technical help to credit unions such as Latino Community Credit Union, also in Durham.

In turn, Latino Community works closely with organizations such as the Latino Community Development Center and government groups such as the North Carolina Minority Support Center.

"We look to partner with people who are committed to a cause or a purpose," explains Jim Blaine, CEO of State Employees. "It was a matter of the heart rather than logic to start a Hispanic credit union."

A second model creates a division within a credit union that reaches out to groups such as the Hispanic market. Arrowhead Credit Union, San Bernardino, Calif., and Chocolate Bayou Community Federal Credit Union, Alvin, Texas, took this approach.

The total U.S. Hispanic population is 36.4 million. It increased 58% from 1990 to 2000, according to CUNA's 2003-2004 Credit Union Environmental Scan. It then grew an additional 6% from 2000 to 2002. More than half of recent growth (53%) is due to immigration.

"The opportunities are there," notes Bill Hampel, CUNA's chief economist and senior vice president of research and policy analysis. Hampel is CUNA's chief liaison to the Hispanic Task Force. The American Banker recently reported seven new Hispanic banks are being organized and another five potentially planned for 2005.

Which credit unions are reaching out to serve the Hispanic market? What strategies are they using? Why aren't more credit unions reaching out to serve the nation's largest minority community? What can CUNA and the leagues do to help?

CUNA's Hispanic Outreach Task Force hopes to answer those questions and more as it conducts a national survey of credit unions, says Armando Cavazos, chair of the task force and CEO of Credit Union One in Ferndale, Mich. "One of the goals of this task force is to develop an action plan for credit unions interested in serving Hispanics or any immigrant group," Cavazos adds.

The survey will be conducted this summer, with results ready for the Hispanic Task Force in August. The task force's final report and recommendations are due to the CUNA Board in November.

JIM HANSON is vice president of CUNA's center for personal finance and a staff liaison to CUNA's Hispanic Task Force. Contact him at 608-231-4080 or at jihanson@cuna.com.