Coopera Report Commissioned by Leagues
January 10, 2013 - A new report commissioned by the California and Nevada Credit Union Leagues and Applied Research Institute highlights opportunities for credit unions in California and Nevada to grow their membership and increase their revenue through service of local Hispanic populations.
The Hispanic Opportunity Report—developed as part of the Leagues’ newly formed partnership with Coopera, an Iowa-based firm focused on the emerging Hispanic market— found in California:
- Hispanics represent 38 percent of the state’s population
- 62 percent were born in the U.S., and the median age is 27
- 1 in 6 businesses are Hispanic-owned (17 percent)
- 41 percent are underserved
- The state is No. 1 in nation in Hispanic buying power
- Hispanics have $265 billion in disposable income
In Nevada, the report revealed:
- From 2000 to 2010, the state’s Hispanic growth rate (82 percent) outpaced California (28 percent), Texas (36 percent), and Florida (57 percent)
- By 2030, 1 out of 3 Nevada residents will be Hispanics
- 60 percent were born in the U.S., and the median age is 26
- 8 percent of businesses are Hispanic-owned, approximately 18,000
- North Las Vegas and Las Vegas have the highest ratio of Hispanic-owned businesses
- More than half (more than 350,000 individuals) are underserved
The Coopera team conducted similar estimates for California and Nevada, estimating that if 10 percent of each state’s Hispanic adults were members of a credit union, the numbers are compelling. In California, they would contribute an estimated $2.1 billion in loan balances and $592 million to annual income. Nevada’s Hispanic adults would contribute an estimated $82 million in loan balances and $28 million to annual income.
“In response to demographic data reported by the U.S. Census Bureau following its 2010 national survey, we commissioned Coopera to produce the Hispanic Opportunity Reports to better understand the current and future market situation in our states,” said Lucy Ito, Leagues executive vice president and COO. “The findings of the reports indicate that opportunities abound for California and Nevada credit unions to position themselves for serving the fast-growing and extremely influential Hispanic market. We look forward to working with Coopera to provide our member credit unions with proven strategies and tools for growing membership, loans, and non-interest income.”
The Hispanic Opportunity Report also debunked common myths businesses have about the Hispanic community. Additionally, it highlighted case studies of credit unions with successful Hispanic outreach efforts, including First Imperial CU in El Centro, CA, Great Basin FCU in Reno, NV, Santa Cruz Community CU in Santa Cruz, CA, and Travis CU in Vacaville, CA.
“For credit unions looking to capture new members and achieve growth rates exceeding the overall industry, Hispanic outreach and providing fair and dignified financial services are smart investments. We hope the information in the report will motivate California and Nevada credit unions moving forward to pursue the Hispanic market more intentionally,” said Coopera CEO Miriam De Dios.
Coopera is an Iowa-based economic development firm focused on the emerging Hispanic market, which presents unique growth opportunities for credit unions. Coopera’s bicultural and bilingual staff works with clients to assess their needs and develop custom solutions. Founded by the late Hispanic community activist Warren Morrow, Coopera is owned by Affiliates Management Company, the holding company of the Iowa Credit Union League, and is a strategic alliance partner of the Credit Union National Association. For more information, visit www.CooperaConsulting.com.
The Applied Research Institute of the California Credit Union League initiates high quality research on topics that can help credit unions and credit union service organizations improve their operational and/or financial performance, better serve their membership, as well as tap new members.
With headquarters in Ontario, CA, the California and Nevada Credit Union Leagues provide information, education, advocacy and support services to 324 credit unions in California and Nevada. Nearly 10 million Californians and Nevadans are credit union members. For more information, go to www.ccul.org.