U.S. Hispanics: A Promising Market Comes of Age MacroMonitor Marketing Report Vol. III, No. 10 June 1998

Hispanics are a fast growing, potentially profitable market segment. Overall there has been an increase of Hispanics annual income of more than 10 percent between 1993 ($31,000) and 1995 ($35,000) compared to African-Americans, Asian-Americans, and other ethnic groups. The U.S. Census Bureau has reported that the Latino birth rate is over 5 times greater than the national rate. There are profits to be made within the Hispanic community, but as this report demonstrates, not necessarily in the traditional financial products and instruments.

The financial products and services that should benefit the most from the growth of the U.S. Latino population, in terms of numbers and economic purchasing power, are those involved in protection and investing. The enthusiasm about tapping this potentially lucrative market has been shown by very few companies. This report affirms is that among Latinos there are changing attitudes that make it a perfect time to start targeting Hispanics.

Financial Topics Household Would Like to Learn More About

Hispanics are good candidates for a wide variety of financial services, but only if institutions work with them. Not only is there room to grow but there is a overriding predisposition on the part of Latinos to want information and help. Nearly six out of ten Latinos said they would get advice from a specialist when making financial decisions like investing. The challenge for tapping the Latino market is to be sensitive to this communities needs and to be patient.

As the number of Latinos swell and continue entering the ranks of the U.S. middle class there will be a great need for financial vehicles to service this community. With a greater political voice and economic opportunities awaiting the next generations of Latinos, Hispanics will inevitably climb the economic ladder. But, the beginning of this wave is today and with a $30 billion market for financial services ready to be tapped, companies should be courting the Hispanic community now and not 50 years from now.