The Hispanic Community: $700 Billion in Purchasing Power

Summary

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How a bank approaches the barriers that Hispanics face in opening an account will ultimately affect how they serve the Hispanic consumer and tap this growing market. Community banks have the distinct opportunity to serve their Hispanic clientele by reacting swiftly to the needs of the Hispanic community they serve. The potential for this market is huge. Hispanlntelligence reported in 2004 that Hispanic purchasing power surged to $700 billion and is projected to reach approximately $1 trillion by 2010. Mexico's Central Bank stated that remittances to Mexico from the US were projected to be $20 billion this year. As reported by the Pew Hispanic Center, a nonprofit research organization supported by The Pew Charitable Trusts, the cost of sending money home can reach 10 to 15 percent of the amount sent. These remittances represent a possible gateway to a Hispanic's first bank account because banks can offer lower remittance fees in combination with opening an account.

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Extract

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The Hispanic Community: $700 Billion in Purchasing Power

Jose walks to his neighborhood money wire service every week to send $200 home to Mexico. His cousin told him about the place when he arrived two years ago. It costs about $20 to send that $200 home. Jose has no bank account and the neighborhood wire service is the most conveniently located. He also knows that he cannot open a b...

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