How do Hispanic millennials treat finances? A recent study conducted by ThinkNow Research in conjunction with Sensis compares the banking habits of Hispanic millennials to other millennial groups. The major takeaway – 43 percent of Hispanic millennials feel financially overwhelmed.
Financial institutions can reach them online
Hispanics, especially young Hispanics, set digital trends. They own smartphones, use social media, and over-index in online shopping. Predictably, Hispanics lead mobile banking trends – 69 percent use a smartphone for banking services. Half prefer paying bills and transferring money online (compared to 28 percent in-person). They are open to banks without branches, and are far more likely than non-Hispanics to consider Amazon, Google or Facebook banking services (55 percent vs. 47 percent).
Don’t close your bank stores yet
Many Hispanic millennials still value in-person relationships:
- 60 percent prefer opening a new bank account in person (compared to 29 percent online)
- 61 percent prefer obtaining a mortgage in person (compared to 22 percent online)
- 70 percent seek a personal relationship with their banks (compared to 65 percent of non-Hispanics)
How can you help them?
The majority of Hispanic millennials are confident when it comes to basic finances – they are more likely than non-Hispanics to pay their credit cards in full each month (49 percent vs. 46 percent) and have enough money in a “rainy day” fund (48 percent vs. 43 percent). Still, half don’t believe they can afford the down payment on a house. Almost two out of three Hispanics are unaware how much a down payment would cost.
Think carefully about this diverse emerging market. Work with Hispanic millennials across in-person, mobile and web platforms to keep them from feeling overwhelmed. Share educational resources and tips. Recognize past behavior and current needs. Pave the way for future financial engagement and security.