Hispanic America Saves through Credit Unions Presented By Larry Garcia

1. Hispanic America Saves through Credit Unions Presented By Larry Garcia

2. Definitions: • Hispanic: Relating to or derived from the people, speech or culture of Spain or Portugal • Latino: People of “Latin American” descent • “Hispanic” is an ethnicity, not a race. The term Hispanic dates back to the 1970 Census that asked Hispanics to self-identify as Mexican, Puerto Rican, Cuban, Central/South American or other Hispanic. • Origin can be viewed as the heritage, nationality group, lineage, or country of birth of the person or their parents or ancestors before their arrival in the United States. • People who identify their origin as Spanish, Hispanic, or Latino may be of any race or mixed race. • Websters Dictionary, U.S. Census Bureau 2000 The 2006 Latino National Survey found that 13.4% of respondents preferred the term “Latino,” 35% preferred “Hispanic,” and 50.1% could identify with either term. Latino National Survey 2006 The Opportunities of servicing the Hispanic/Latino Market are many, yet the Challenges of marketing to Hispanic/ Latinos are also many, largely due to the range of originating cultures, varying degrees of language preferences, and different levels of acculturation.

3. Population: Estimated Spending Power: $1 Trillion for 2008 and $1.2 Trillion by 2011 Selig Center for Economic Growth 2006, U.S. Diversity Markets Report 2006 • The U.S. Hispanic/Latino Market • Marketing & Servicing Opportunities: • Significant Size, fast growth, increasing spending power • Significant gap in financial services usage • Strong, young market • Urban population concentrations • Hispanic/Latino identity bound by common language and/or immigration experiences • Marketing & Servicing Challenges: • Hispanics/Latinos come from 22 different countries each with own cultural nuances • Varying degrees of language usage and assimilation which affects language preference. • Distrustful of financial institutions • Different degrees of documentation status

4. Marketing Strategies to reach the Hispanic/Latino Market are dependent on diverse characteristics of each segment Hispanic/Latino Market Segmentation: Residency– Average length foreign born 17 + years 62% of all foreign-born Hispanic/Latino adults have lived in the U.S. 15 years or less. Synovate U.S. Markets Report 2006 Social Adaptation or Acculturation level: US Diversity Market Report 2006 Language Preference : Hispanic Fact Pak, U.S. Diversity Report 2006

5. Population by Country of Origin Geographic Concentration by Country of Origin

6. Hispanic/Latino Consumer Profile: • Young & increasing in spending power • 2006 Median Age: U.S. = 36.4 Hispanics/Latinos = 27.2 • In 2006 Hispanic/Latino teens comprised 20% of the total U.S. teen population and 38% of the total Hispanic/Latino population—with a purchasing power of $20 Billion. • Teens account for an average of 43.1 % of the Hispanic/Latino populations in the top 10 Hispanic/Latino markets. • Hispanic Latino Market Profile Other significant growth indicators for this market in financial services for the next two decades: • The National Council of La Raza estimates that over 60% of Hispanic/Latinos do not have checking or savings accounts. • Most unbanked Hispanic/Latinos are being “served” by fringe lenders, payday lenders, and predatory type financial services. • Over the next few years, an estimated 2.5 Million homes will be purchased by Latinos for approx. $500 Billion!! • International remittances from the U.S. to Latin American Countries now near $42 billion dollars per year • MAKE THE CONNECTIONJOIN A COOPERATIVE • OF CREDIT UNIONS AND PROFESSIONALS DEDICATED TO PROMOTE CREDIT UNION SERVICES TO THE • HISPANIC/LATINO COMMUNITY

7. DESPITE THESE MARKETING CHALLENGES, YOU CAN POSITION YOUR CREDIT UNION TO BE THE FINANCIAL INSTITUTION OF CHOICE OF THE HISPANIC/LATINO COMMUNITY AND TO INCREASE GROWTH WITH LOYAL NEW MEMBERS The Hispanic America Saves Campaign to Promote Savings through Credit Unions and the Network of Latino Credit Unions and Professionals (NLCUP) have the capacity to assist your credit union in serving the Hispanic/Latino Communities. • They can assist your Credit Union Connect to the Hispanic/Latino Community through: • Proven Marketing strategies • Hispanic/Latino Marketing materials and delivery methods • Value added services for members through community partnerships • New financial services and delivery methods • New sources of funding for Credit Union operations • Proven operations techniques

8. 1 Focus Group Findings Revealed Barriers to Savings : Language barrier—materials & personnel Mistrust of financial institutions & skepticism with banking industry Lack of familiarity with U.S. credit system and savings at financial institutions Lack of acceptable ID or Social Security number Perception of expensive checking accounts Lack of financial products to service their needs Limited access to Financial Institutions due to lack of locations in underserved areas, inconvenient hours of operation, and/or lack of required documentation Financial services marketing & information materials not reaching and/or connecting to Hispanic /Latino market In order to overcome these barriers, we developed and/or adapted different market approach strategies including: new marketing materials and delivery methods, and new consumer loan products, and partnerships with organizations with similar goals that will provide leverage. The new strategies were implemented through operational changes, partnerships with credit unions, community based organizations, national organizations, and governmental agencies. One such method was to form partnerships with community organizations and the America Saves Campaign—which evolved into Hispanic America Saves.

9. Introduction to Hispanic America Saves: • The Hispanic America Saves Campaign through Credit Unions is a national cooperative marketing campaign for the Credit Union industry to service this strongly emerging market at all income levels and be able to compete with national banks and other national high cost financial services providers. • The program is a good fit for Credit Unions—it is a cooperative, it targets underserved communities, and will assist the Credit Union industry to access emerging markets with culturally and linguistically sensitive marketing materials, delivery methods, and the development of new or improved products and product delivery methods. • Partnering with the Hispanic America Saves Campaign and NLCUP will allow the use of current resources in developing a national strategy for Credit Unions to become a major partner in servicing the financial needs of the Latino/Hispanic community. Each partner has resources that together will complement the development and implementation of this program. • The Hispanic America Saves Campaign demonstrates a highly visible credit union commitment to family asset development and outreach to low- and moderate-income Hispanic households.

10. What is Hispanic America Saves through Credit Unions? The Hispanic America Saves Campaign (HAS) is a Nationwide campaign which helps Hispanic/Latino individuals and families join the mainstream Financial System, save, and build wealth by establishing goal driven savings strategies: • Through a Savings Goal Form, a Saver agrees to work toward defined wealth building goals, such as: • build an emergency fund • save to purchase a home • save for the purchase of reliable transportation • save for a small business • save for an education • save for retirement • pay down debt

11. What is Hispanic America Saves through Credit Unions? (cont’d) • In return the Saver receives: • Free wealth building classes—Financial Education, Homeownership, Personal Financial Management • Free savings tips • Access to low-balance no-fee interest bearing savings accounts, and low cost Financial Services—Credit unions will provide the financial services vehicle through savings accounts and low cost credit union financial products • Vendor/Hispanic America Saves promotions • Free homeownership services (such as: IDAs, Housing Counseling, Down Payment Assistance, etc) • Free family asset development services that can be developed through HAS/NLCUP assistance—Free Tax Preparation, Personal Financial Planning, Budgeting, etc. • Free Credit Management services • Free tips & information on saving and one year Free subscription to the American Saver (Hispanic America Saves Newsletter) quarterly newsletter

12. The Hispanic America Saves messages seek to motivate and inform. Currently, they include general messages such as: “Save and Live your Dreams”, related to the most effective asset building strategies for low- to-middle income families– purchasing a home, saving for emergencies, to get an education, to start a business, and saving for retirement at work “Learn the Power of Savings”, related to the most effective wealth-building strategies for low- to-middle income families – purchasing a home, saving for emergencies, to get an education, starting a business, and saving for retirement at work “Build Wealth Not Debt”, related to achieving financial goals. “Save Purchasing a Car”,related to how to purchase a car—how to properly choose a car and how to finance a car at a fair cost. “Build Wealth through Homeownership”,relates to purchasing a home to build family equity. All messages are in English and Spanishand include more specific messages about key savings strategies and how to find money to save. The Hispanic America Saves Campaign can be easily branded nationwide to include any savings strategy or program that will benefit Hispanic families with the use of Credit Union financial services. This could lend itself to as many strategies as there are areas where the Hispanic America Saves is promoted. The Hispanic America Saves Campaign could negotiate products and services for lower cost and greater accessibility.

13. What’s in it for my Credit Union? It’s just good business to access the fastest growing segment of the economy. Make your Credit Union the Financial Institution of choice for Hispanic/Latinos Benefit from the leveraging of resources with other HAS Campaign members around the country Benefit from the specialized marketing materials—develop or use available materials Benefit of availability of best practices from around the country—including family asset development strategies to enroll new members and partnerships with community based organizations Find out how to gain credibility with the Hispanic/Latino Community Find out how to document ITINS Members become better borrowers Find out how to remove any language barriers

14. Current Hispanic America Saves services that could be used by a credit union include the following: • Basic English-Spanish pamphlets on different savings strategies–emergency savings, homeownership, car purchase, retirement, education, small business, etc. • Related posters, and videos • Training and advice on how to present motivational workshops and provide wealth coaching to credit union members • Sample financial products that service the Hispanic/Latino community • Sample delivery methods being successfully implemented to the Hispanic/Latino community • Credit union access to an America Saves Credit Union Advisory Committee and the Hispanic America Saves Advisory Committee to monitor its progress. • Opportunities to market longer term deposits with goals of emergency funds, retirement, education, and homeownership. • Opportunities to market shorter term deposits with consumer loan upon achievement of goal—auto, home improvement, etc.

15. What do I need to do to join the Hispanic America Saves Campaign? Call Larry Garcia –NLCUP/Hispanic America Saves Campaign Coordinator Phone: 915-838-9608 Fax: 915-838-8085 E-mail: Commit to serving the Hispanic/Latino Community Sign a NON-BINDING Memorandum Of Understanding (MOU)—This MOU is used to determine logistics and levels of commitment of resources available to the Hispanic America Saves Campaign for planning and implementation purposes. The MOUs are also used to determine in-kind contributions toward the Campaign and are used as leverage for current or future grants available to the HAS Campaign. Attached samples. Participate as little or as much as you want. How much will it cost me? Much less than if you would undertake this type of marketing research and development on your own No other additional cost. Simply re-allocate a small portion of your current budgeted marketing resources towards this type of marketing—use your current resources to distribute the messages developed by HAS and in marketing the messages to your market Hispanic/Latino members or future members. You can assist HAS in developing messages, or contribute best practices strategies, if you so desire. Should you desire to take advantage of the networking benefits of NLCUP, there is a small membership fee to NLCUP—the amount depends on Credit Union asset size larry.garcia@epcuah.com

16. Once I commit, what do I have to do? The more you get involved, the more you will benefit, but you choose your level of participation and involvement by picking & choosing those activities you wish to be involved or add resources to: Serve the Hispanic/Latino Community—to any level desired Participate in Developing messages Commit to delivering developed messages with coordinated delivery & subject matter—if all Credit Unions send coordinated messages at coordinated times it will insure maximum leverage of resources for a national Hispanic America Saves Campaign. Add resources to HAS Campaign for: Seed funds/Resources Marketing of messages to members Promotion of Saves Campaign to members & SEGs Enrollment of Hispanic America Savers by credit union staff Hold Financial Education workshops/ coaching in the community Update your website with HAS messages and links Coordinate a local Hispanic America Saves Campaign Will training be available? Yes, HAS & NLCUP will set up training sessions for delivery of messages & materials: On the kind of promotional activities Credit Unions can perform How to set up, market, and hold Promotional workshops. How to Enroll Savers and how to fill out Saver enrollment materials How to develop local added value services to your financial services and marketing efforts.

17. What’s the benefit to the Credit Union Movement? • Leadership of a national effort to promote more effective household saving to the Hispanic/Latino community • Demonstration of a strong commitment of the Credit Union System to financially underserved groups, such as, the Hispanic/Latino Community, and low and moderate-income households • Opportunities to distinguish Credit Unions from for-profit financial institutions. In summary, a partnership between your Credit Union, the Hispanic America Saves Campaign , and NLCUP will strengthen your services and membership ties, leverage the Credit Union System to compete with national or regional banks, connect the Credit Union System to the strongest emerging economic market, and service a traditionally underserved market. Hispanic America Saves Logo Can be Co-branded with partner CU logo For local distribution

18. MAKE THE CONNECTION • HISPANIC AMERICA SAVES CAMPAIGN • Contact  Larry Garcia • E-mail to join as a Partner Credit Union: Larry.garcia@epcuah.com • Phone: 915-838-9608 • Fax: 915-838-8085 • Individual Saver Enrollment • Website: HispanicAmericaSaves.org • NETWORK OF LATINO CREDIT UNIONS AND PROFESSIONALS • Contact Melinda Willson • Website: nlcup.org • E-mail: LatinNetwork@oas.org • Phone:(202) 458-3659 • Fax: (202) 458-3838 Network of Latino Credit Unions and Professionals

19. APPENDIX Pages 20-22 Sample MOU-Page 23,24 Sample Brochures 25-27 Sample Posters 29-31 Sample Information for Individual Savers 32 Sample Enrollment Form

20. Sample Memorandum of Understanding for a Credit Union or Community Based Organization to formally participate in the Hispanic America Saves Campaign. This is strictly a NON-BINDING agreement that is used to determine logistics and Levels of commitment of resources available for the HAS Campaign. The MOUs are also used to determine in-kind contributions toward the Campaign to be used as leverage for current or future grants available to the Hispanic America Saves Campaign.

21. Sample Memorandum of Understanding for a Credit Union or Community Based Organization to formally participate in the Hispanic America Saves Campaign. This is strictly a NON-BINDING agreement that is used to determine logistics and Levels of commitment of resources available for the HAS Campaign. The MOUs are also used to determine in-kind contributions toward the Campaign to be used as leverage for current or future grants available to the Hispanic America Saves Campaign.

22. Sample Memorandum of Understanding for a Credit Union or Community Based Organization to formally participate in the Hispanic America Saves Campaign. This is strictly a NON-BINDING agreement that is used to determine logistics and Levels of commitment of resources available for the HAS Campaign. The MOUs are also used to determine in-kind contributions toward the Campaign to be used as leverage for current or future grants available to the Hispanic America Saves Campaign.

23. Sample Spanish Brochure to Promote General Savings Strategies to Hispanics/Latinos

24. Sample Bi-lingual Brochure for Auto Purchase Savings Strategy

25. Sample Bi-lingual Poster for Auto Purchase Savings Strategy

26. Sample Posters for General Savings Promotion to Hispanics/Latinos. This Strategy promotes Savings for Education, Home Purchase, Auto Purchase, Retirement and Small Business.

27. Sample Posters for Savings Strategy using Free Tax Preparation and Earned Income Tax Credits for Family Asset Development

28. Information for Individual Savers About the Hispanic America Saves Campaign

29. What is Hispanic America Saves? • Hispanic America Saves Campaign is a nationwide campaign in which a broad coalition of Credit Unions, nonprofit organizations, corporations, and government groups helps Hispanic/Latino individuals and families save and build wealth. Through information, advice, and encouragement, the Saves Campaign assists those who wish to pay down debt, build an emergency fund, save for a home, save for the purchase of reliable transportation, save for a small business, save for an education, or save for retirement. • Why Should I Save? • To have available funds for emergencies. • To afford a home, education, investments, or other products that will improve your quality of life. • To start a business. • To afford higher education. • To prepare for retirement. • To gain peace of mind. • Who is an Hispanic America Saver? • Anyone who agrees to better their quality of life by working towards a savings goal such as an emergency expense fund, debt reduction, homeownership, or even retirement. Hispanic America Savers set a monthly savings goal of as little as $10 and then try to save it. • So what does all this cost me? • No money. Your only obligation is to develop a specific savings goal, select a savings account, make a deposit in this account each month (or make a debt payment), and let us know that you are working toward a savings goal by enrolling with Hispanic America Saves through whichever method is easiest.

30. What membership benefits are available to me at no cost? • Access to favorable savings and loan products • Spanish speaking loan officers and financial counselors • Free bilingual classes on money and credit management • A quarterly newsletter offering tips on savings, which is mailed or e-mailed to you four times a year. • Savings seminars at participating businesses. • Access to homeownership workshops, housing counseling, foreclosure prevention assistance, and savings strategies. • Access to Free Tax preparation services. • Access to Credit Union financial advisers free of charge. Who controls my savings account? • You do. Use an existing Credit Union account or open a Credit Union account in your name. We only advise and encourage. How do I enroll in Hispanic America Saves? • Simply fill out the attached Savings Goal and submit to Hispanic America Saves, through the mail, fax, telephone or e-mail, or enroll through the internet, as shown in this brochure.

31. Five Savings Strategies for Savers: 1.The importance of emergency savings-Having an emergency savings fund may be the most important difference between those who manage to stay afloat and those who are sinking financially. That’s because maintaining emergency savings of $500 to $1,000 allows you to easily meet unexpected financial challenges such as: • repairing the brakes on your car• buying your child a new pair of needed shoes• replacing a broken window in your house• visiting a doctor when your child has the flu• covering the dental expense of filling a painful cavity• paying for a parking ticket, or• flying to visit a sick parent The emergency fund allows you to cover these expenses and gives you the “peace of mind” that you can afford these types of financial emergencies. 2. Learning to manage and reduce large consumer debts are the most important financial reason that people have trouble saving and building wealth. With planning, discipline, patience, and maybe some outside help, anyone can reduce their debts and start to accumulate wealth. 3. Increasing wealth through homeownership-For decades, homeownership has been the main path to wealth for most Americans. Today, home equity - the market value of a home minus the balance on any home loans - represents more than four-fifths of the typical family's wealth. So, each home loan payment not only helps pay down the principal and interest on your home, but also builds your wealth. First, simply by paying off your home loan, you are building wealth. Second, it is highly likely, that the market value of your house will increase over time—on average, four percent annually. Third, the home equity can be used to pay for higher education, start a business, or for retirement. 4. Saving through auto purchases—being able to travel by car can help people earn more, spend less, and get better value in their housing. Cars, however, are relatively expensive to purchase and maintain. American households spend, on average, more than $8,000 dollars on car purchases and maintenance each year. Individuals can reduce this transportation expense by making wise purchase decisions. Our Auto Purchase brochure and videos will assist Savers in making wise decisions in auto purchases. 5. Participate in a work related retirement program. Don’t turn down free money from your employer by signing up for a work-sponsored retirement programs such as a 401k plan.

32. Sample Hispanic America Saves Enrollment form—English & Spanish

33. Six (6) Ways to enroll in Hispanic America Saves: Mail Savings Goal form to Hispanic America $aves PO BOX 3027 EL PASO TX 79923 Call Hispanic America $aves at: (915) 838-SAVE (7283) Fax to Hispanic America $aves at (915) 838-8085 or login & enroll to: At any participating Credit Union Through any local Hispanic America Saves Partner www.HispanicAmericaSaves.org

34. Sample Brochure Promoting Savings

35. Sample Spanish Poster to promote Homeownership

36. HAPPY SAVINGS!!! ¡¡¡FELICES AHORROS!!!