Thread: Banks Targeting Untapped Hispanic Market (Untapped Illegal?)

http://www.tuscaloosanews.com/apps/pbcs ... /505170554

Banks targeting untapped Hispanic market

By ROSA RAMIREZ
May 17, 2005

Many Hispanics who live and work in the United States send millions of dollars to relatives in their native countries each year - and financial institutions in Alabama, as well as those across the country, are beginning to reach out to the largely untapped Hispanic market.

Vicente Lorenzo, for example, sends money religiously to his wife and two young children in Acambay, Mexico.

"I send them money every week," said Lorenzo, 30, who has lived and worked in Alabama for five years. Close to 80 percent of what he makes working in construction goes to his family, and he sometimes sends as much as $1,200 at a time.

Lorenzo is among thousands of Hispanics in Alabama who send millions of dollars to Latin America each year. A 2004 report by the Inter-American Development Bank showed that 78 percent of Alabama Hispanic immigrants regularly send money to family and friends.

The bank conducted surveys in 3,800 households from February through April 2004 for the report. Last year, Hispanic immigrants in Alabama collectively sent $149 million in remittances. Individuals sent an average of $2,797 in the course of a year, with individual transfers averaging $260.

It is estimated that 10 million Latin American immigrants nationwide sent an average of 10 percent of their household incomes, according to the report. Increasingly, big banks aren't content to let traditional wire transfer services like Western Union keep all the fees associated with sending that money.

For example, Charlotte, N.C.-based Wachovia and Banco Hispano, a division of Bank of Alabama, are luring Hispanic customers by offering services such as wiring money to Mexico, Central and South America and the Caribbean. Wachovia, which recently purchased Birmingham-based SouthTrust Bank, later this year will bring to Alabama its "Tarjeta Dinero Directo," or "Direct Money Card." The ATM-type card allows customers to wire money to Latin America, the Caribbean and Spain.

Wachovia already offers the service in Texas and Florida.

Angela Parker, spokeswoman for Wachovia's Miami branch, said the program is part of a larger banking package, "Cuenta Con Todo," or "Account With Everything," designed to attract Hispanic customers.

Since Hispanics have become the largest ethnic group in the United States, financial institutions nationwide have increased their advertising and marketing budgets to get their business. Many banks already have pamphlets in English and Spanish with messages that appeal to Hispanics.

Louis Barajas, financial analyst and author of "The Latino Journey to Financial Greatness," said banks are beginning to see a real benefit in tapping into the Hispanic market, especially because this community lacks a banking relationship history.

It's easier for banks to target and attract customers who don't already have savings or checking accounts than to lure customers from other banks, he said.

"They know there is a huge unbanked market they can tap into," Barajas said. "Banks are starting to realize the need to get that customer."

Bank of Alabama did exactly that. Last year, the company opened a bilingual branch, Banco Hispano, that caters to the specific needs of the Hispanic community, and a second branch is planned. Among other things, Banco Hispano carries the "Tarjeta Amiga," or friendly card, which allows individuals to wire money to friends and families not only in Latin America but throughout the world. The card works much like a prepaid card in which individuals can control how much money friends and family can withdraw.

Many banks wishing to provide money transfer services will have to compete with well-established wiring services, such as MoneyGram and Western Union, that have provided Hispanics with remittance services for many years but may charge up to 15 percent for sending money, Barajas said.

But he sees the competition for potential Hispanic customers as good.

"Some smart banks are putting together a program that includes hiring bilingual representatives who understand the culture," Barajas said.

Nationally, some banks, including Bank of America and Wells Fargo, are providing free money wiring services with the opening of a savings or checking account.

But Barajas said it will take some time before the Hispanics are able to trust financial institutions.

He said it will take recent immigrants from two to five years to begin building bank relationships as they become acclimated and banks cater to them.

Once in the United States, many Hispanic immigrants are hesitant to seek out a banking relationship because they bring the fears and lack of trust many had about banks in their homelands, Barajas said.

Others, especially the poor, may not be experienced with the banking system at all, he said.

Melisa Mendez, branch manager with Banco Hispano, said the branch offers free 45-minute courses on basic banking for new customers.

Everyone who opens a savings or checking account with the branch is required to take the course, she said.

A lack of banking history eventually becomes a barrier for immigrants, especially if they want to purchase a home or car or build credit history, Barajas said.

A number of banks in Alabama, including Wachovia and Banco Hispano, are accepting the consular identification card and federal tax identification number as a form of identification to make banking more accessible for Hispanics to open accounts. This allows individuals who are in the country illegally to open bank accounts and transfer money to their families in their native lands.

But for many Hispanics, wiring money from Hispanic markets is still the first choice.

Colombian-born Marta Cienfuegos is the owner of Imperio Tienda Hispana in Hoover, one of many stores providing money transferring services to the Hispanic community.

"We have customers that have been sending money with us since we opened 11 years ago," Cienfuegos said. She said the average money transfer per wire is between $200 and $300.

Big banks still haven't attracted customers like Ana Elena Paiz, who recently sent money to her sister-in-law in El Salvador using Ria, a wiring service provided at Imperio Tienda Hispana.

The 31-year-old said she prefers sending money there because she can speak Spanish and pick up anything else she may need on her way out.

I find it hard to believe that anyone here legally would be sending money home to their wife and kids. Keep catering to these people and they will lose their legal clientel.

The banks should be fined and those who are aiding and abetting the illegals ought to be jailed

Wachovia of NC will give them what they want. I'll not bank with Wachovia.

What the Government should do is during Bank Audits compile the list of new accounts absent social security number. Then freeze the assets and turn the list over to the INS. Then deduct the cost of deportation from the assets then put the balance of the assets into a Victims Account for distribution to all the Americans damaged by these violations of law.

If the jobs and businesses these aliens are feeding off of were filled by Americans, none of this transfer business would be necessary. Then all $17 Billion a year would remain in the US instead of feed Mexico.

That would more than pay for guarding our borders.

I all ready had it figured out how to man the border without costing extra. Every state has numerous Army, Navy, Air Force and Marine Reserve units and even more National Guard Units. Each of those have two pull two weeks each year active duty. Stagger the times of the year for duty and you could probable cover the complete border 365 days a year.

Opps, sorry forgot the Coast Guard Reserve.

and just as a foot note if you want to get fancy with it Engineer units could be put to work building the fence.

Yo, george you hear me up there

CharlesOakIsland--Outstanding IDEA!!! And you are so right!! This bunk about it being impossible, unaffordable is just a bunch of....BushWhack Bunk!!