| U.S.
Hispanic Market
70%
of organic growth for the U.S. financial services industry over
the next five years could be based on the Hispanic market.
- The TowerGroup
Since
1992, Crimson has provided Spanish language translation for financial
services firms seeking to access the growing Hispanic marketplace.
Beginning with Fidelity Investments, Crimson has provided expert
translation of prospectuses, fact sheets, enrollment and educational
materials, and other marketing and contract materials. Our experience
in this burgeoning market is unparalleled.
Demographics [Jump
to Top]
Financial services firms are realizing that Hispanics now represent
the largest ethnic market in the U.S. According to the Census Bureau,
in June 2003, Hispanics officially became country's largest minority
group—accounting for 13% of the total population. This is
in addition to other key statistics:
-
Since 2000, U.S. Hispanics accounted for 50% of U.S. population
growth
(source: PRNewswire)
- Hispanics
make up one-half of all new workers in the U.S. Within two generations,
they will go from 12% of the total workforce to 25%
(source: BusinessWeek)
- Purchasing
power is currently estimated at over $800 billion per year and
has been growing at twice the rate of the rest of the U.S. population
(source: PRNewswire, BusinessWeek)
- Hispanics
own 1 in 20 U.S. companies – nearly 27,000 have over $1
million in revenue. Hispanic business ownership is up nearly 30%
since 1998
(source: USA Today, BusinessWeek)
- Hispanics
have the fastest growing rate of home and business ownership in
the U.S.
(source PRNewswire)
In
fact, the current demographic shifts are prompting businesses and
politicians to take notice. Both Republicans and Democrats have
recently begun offering Spanish lessons for their members in the
House and Senate. As Rep. Jerry Weller (R-Ill) says, "The launch
of Spanish on the Hill shows we are serious about working with Spanish-speaking
America."
Market
Characteristics [Jump to Top]
The U.S. Hispanic market has not been adequately addressed, according
to a number of leading financial services industry experts. Says
Kate Ligare, Sr. VP of Marketing for GE Financial: "The U.S.
Hispanic market is underserved. That's why we've focused on it—we
think we're in a very pioneering space." Market size, combined
with lack of industry focus, produces an unusually attractive opportunity
for financial services firms:
- 50%
of all Latinos do not have bank accounts or credit cards (source:
WSJ)
- Approximately
33% of Hispanics have life insurance vs. 50% of general population
source (source: WSJ)
- The
average Latino consumer spends $180/year on personal insurance
vs. $399 for general population (source:
Bureau of Labor Statistics)
- 17%
of Hispanics say they have never saved for retirement—four
times the percentage for whites and 70% more than African-Americans
(source: Allstate)
The scale of this opportunity is not lost on financial services
companies. For instance:
- Leading
financial services consultant The TowerGroup estimates that 70%
of organic growth for the U.S. financial services industry over
the next five years could be based on the Hispanic market.
- Eusebio
Rivera, head of Hispanic Initiatives for Bank of America says,
"In the next couple of years, 80% of our growth will come
from the multicultural market, and 60% of that will come from
the Hispanic population."
In
turn, this has led to important initiatives from companies such
as GE Financial: [Jump to Top]
- "1-866-Llame-GE,"
for life insurance, annuities and other services
- Advertising
on Spanish-language TV network, Telemundo
- Spanish-language
call center
- Spanish
language web site
- Bilingual
agents in key cities
As
well as from industry heavyweights Merrill Lynch, Citibank, and
Freddie Mac:
- Merrill
Lynch’s 350-person Hispanic unit is hiring 100 bilingual
financial advisors. Last year, the group generated $100 billion
of new business – double its goal.
- Citibank
launched its new website, www.CuidaTuCredito.com (care for your
credit)
- Freddie
Mac provides classes in Spanish to teach "the financial responsibilities
of higher education and home ownership."
Finally,
Spanish-language industry initiatives are mandatory – for
two very important reasons:
- 78%
of Latinos speak Spanish, even if they know English
- Current
research demonstrates that, even among Hispanics who grew up with
English, there has been no increase in an “English-only”
preference. One study by HispanTelligence reported that the group
speaking both English and Spanish had climbed from 57% in 1995
to 63% and is projected to increase to 67% by 2010. Children in
this group keep their language at four times the rate of other
immigrant groups such as Filipino, Chinese, or Vietnamese.
Call
Crimson’s Boston or San
Francisco offices today and learn how your company can profit
from this important opportunity and stay compliant with SEC
Rule 497 and Sarbanes-Oxley translation requirements. |
