Banking on Diversity
Regardless of whether the infamous Trump wall is ever built, the American economy relies on immigration to ensure robust growth. As boomers age and birth rates drop, it is inevitable that this will continue. By 2050 it is expected that 37 percent of the U.S. population will be either first generation immigrants or second generation children of immigrants. What does this have to do with banks? Well, a lot.
Immigrants come from all over the globe, bringing with them completely different experiences with financial institutions and different habits around banking. Given that the population growth of this segment will be so significant, banks will need to adjust to meet newcomers’ needs.
The other interesting factor is that immigrants are a good bet to bank on. They are more likely to own their own businesses, but without any help from an institutional loan. They have a lower unemployment rate than U.S. born citizens, and want, like everyone else, financial security. However, with only a few exceptions, banks have largely ignored the specific needs of immigrant communities, leaving the door open for regional banks and credit unions to fill the gap.
In this white paper we discuss the importance of understanding the needs of these underserved customers, what those needs are, and what banks need to consider.