Companies must reformulate traditional strategies to reach underbanked Latinos in the U.S. This includes examining unique groups within the overall Latino population to determine the products, services and method of delivery that will best attract and retain this specific Latino sub-segment.

A report by Javelin Strategy & Research, (JSR) Reaching Underbanked Latinos, indicates that unbanked and underbanked Latino consumers in the United States have completely different financial services needs and expectations than other ethnic populations.

Financial services companies must reformulate traditional strategies to reach underbanked Latinos in the U.S. This includes examining unique groups within the overall Latino population to determine the products, services and method of delivery that will best attract and retain this specific Latino sub-segment. According to JSR, customer service and specialized marketing to underbanked Latinos are key to winning this group over.

James Van Dyke, President of Javelin Strategy & Research, said, "Much potential value lies in customizing products and services to meet the specific needs of diverse segments within this group."

The report recommends several strategies for attracting Latino customers and developing valuable relationships, which include elevating personalized customer service over price and reaching-out to consumers through trusted community and civic organizations to establish relationships above and beyond a financial agreement.

Key Findings For Providing Financial Services To Latinos In The U.S.
-- Customer service is critical to attracting and retaining the underbanked Latino customer

-- Ideal product/platform to get customers through the door and into a long-term relationship

-- "Micro-Targeting" is required for several Latino sub-segments, with national origin as one important factor

-- Cash alternatives are more appealing due to flexibility factors

Van Dyke said, "FI's must re-adjust brand image and service offerings before hoping to obtain the long term profitability of the Latino population."