Innovative Banking Products for Underserved Markets

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Text of Innovative Banking Products for Underserved Markets

  • 1. Innovative Banking Products for Underserved Markets
  • 2. Identify Community and Market Characteristics
    Know your community Countries of origin, major employers, schools, neighborhoods, trusted organizations.
    Know your competition
    Offer alternatives that improve on existing products and address unmet needs Give people a reason to come to you and trust you.
  • 3. Demographics Survey of 328 Mexican Immigrants, Mexican Consulate Chicago 2008
    Young community:
    57% 18-34
    34% 35-54
    Low-to moderate annual household income:
    35% $0-$15,000
    34% $15,001-30,000
    19% $30,001-$50,000
    7% Over $50,000
    High Savings Rate even in lower income ranges:
    Average annual remittances: $2,500
  • 4. Trends: Income Growth
  • 5. Trends: Services
    Financial service usage changes with time in US:
  • 6. Evolution in the Marketplace
  • 7. Barriers
    For those choosing not to use accounts, major barriers: ID and min. balance.
    Perception that accounts carry high fees.
    Need for immediate access to funds.
    Consistent Service, including language capacity.
    Non-traditional credit profiles.
  • 8. Opportunities
    Asset protection: health insurance, auto insurance, life insurance.
    Access to credit: home purchase and small business.
    Saving for Education
    Cross-border needs
    Local community needs: domestic money transfers, loans for citizenship and immigration status.
  • 9. Case Study: Family Unification Loan
    Loan for immigration services program pilot in Austin, Texas.
    Initial launch led to no borrowers.
    Broadened outreach, engaged more partners, used the media.
    Result: All initial capital investment, $30,000, loaned out in a four-month period.
    Now demand for additional capital and interest in expansion to other geographies.
  • 10. Effective Market Strategies
    Better value is important, but not enough.
    Workforce and atmosphere should reflect the community.
    Meet people where they arelocation and services.
    School-based outreachreaching parents through their children.
    Leverage employer relationships.
    Integrate education into financial settings, such as account opening or taking out a loan.
  • 11. Importance of Marketing
  • 12. Appleseed Resources
    Market Information
    Consumer Focus Groups
    Best Practices
    Financial Education
    Visit: and
  • 13. Conclusion
    As we try to break some of these consumer behavior patterns We have to be cheaper and we have to engender a greater degree of trust in us.
  • 14. Contact Information
    Annette LoVoi
    Tel: 512.542.9082
    Austin, TX USA