Reaching Immigrant Communities with Asset Building Financial Services

1
Reaching Immigrant Communities with Asset
Building Financial Services
2
Identify Community and Market Characteristics

• Know your community
  Countries of origin, major employers,
  schools, neighborhoods, trusted organizations.
• Know your competition
  Check cashers, remittance company
  agents, pawn shops, banks.
• Offer alternatives that improve on existing
  products and address unmet needs
  Give
  people a reason to come to you
  and trust you.

3
Demographics Survey of 328 Mexican Immigrants,
Mexican Consulate Chicago 2008

• Young community
• 57 18-34
• 34 35-54
• Low-to moderate annual household
  income
• 35 0-15,000
• 34 15,001-30,000
• 19 30,001-50,000
• 7 Over 50,000
• High Savings Rate even in lower income ranges
• Average annual remittances 2,500

4
Trends Income Growth
5
Trends Services

• Financial service usage changes with time in US

6
Evolution in the Marketplace
7
Barriers

• For those choosing not to use accounts, major
  barriers ID and min. balance.
• Perception that accounts carry high fees.
• Need for immediate access to funds.
• Convenience.
• Consistent Service, including language capacity.
• Non-traditional credit profiles.

8
Opportunities

• Asset protection health insurance, auto
  insurance, life insurance.
• Access to credit home purchase and small
  business.
• Saving for Education
• Cross-border needs
• Local community needs domestic money transfers,
  loans for citizenship and immigration status.

9
Case Study Family Unification Loan

• Loan for immigration services
  program pilot in Austin, Texas.
• Initial launch led to no borrowers.
• Broadened outreach, engaged
  more partners, used the media.
• Result All initial capital investment, 30,000,
  loaned out in a four-month period.
• Now demand for additional capital and interest in
  expansion to other geographies.

10
Effective Market Strategies

• Better value is important, but not enough.
• Workforce and atmosphere should reflect the
  community.
• Meet people where they arelocation
  and services.
• School-based outreachreaching
  parents through their children.
• Leveraging employer relationships.
• Integrate education into financial
  settings, such as account opening
  or taking out a loan.

11
Importance of Marketing
12
Appleseed Resources

• Market Information
• Consumer Focus Groups
• Best Practices
• Financial Education
• Visit www.appleseednetwork.org and
• www.texasappleseed.net

13
Conclusion

• As we try to break some of these consumer
  behavior patterns We have to be cheaper and we
  have to engender a greater degree of trust in us.

14
Contact Information

• Ann Baddour
• Texas Appleseed
• Tel [phone]
• abaddour_at_texasappleseed.net