Hispanics and Finance - US - June 2006

Table of Contents

• Introduction and Abbreviations
• Introduction
• Abbreviations & definitions
• Abbreviations
• Definitions
• Hispanics
• Financial industries
• Executive Summary
• The Hispanic financial consumer
• Banking relationships
• Reasons for choosing a banking institution
• Sending money
• Insurance
• Marketing to Hispanics
• Summary of the Hispanic Market
• Overview
• Market size and economic power
  • Figure 1: Percentage of U.S. population, by race/Hispanic origin, 2000-50
  • Figure 2: Buying power, by race/Hispanic origin, 1990-2010
• Age distribution of Hispanics in the U.S.
  • Figure 3: Age distribution of population of Hispanic origin in the U.S., 2000-04
  • Figure 4: Population age distribution, by race/Hispanic origin, 2004
• Educational attainment
  • Figure 5: Educational attainment, by race/Hispanic origin for population over 15 years old, 2005
• Market Drivers
• Diversity among Hispanics
  • Figure 6: Hispanic population, by place of origin, 2000
• Growth of the Hispanic population
  • Figure 7: Hispanic population--new immigrants vs. second and third generations, 1970-2000 and 2000-20
• The impact of second-generation Hispanics
  • Figure 8: Labor force increase of Hispanics, by generation compared to non-Hispanic, 2000-20
• Hispanic occupations
  • Figure 9: Occupation, by race and Hispanic origin, 2000
  • Figure 10: Hispanic labor occupation, by gender, 2000
  • Figure 11: Occupation of Hispanics, by place of origin, 2000
• Unemployment, earnings and poverty
• Hispanic geographic distribution
  • Figure 12: Largest metro areas, by Hispanic population, 2000
  • Figure 13: New Hispanic destinations, 2000
• Retail Banking and Hispanics
• The wake up call
• Hispanic participation in banking
• Banks take action
• Individual Taxpayer Identification Number
• Matricula Consular
• The remittances factor
  • Figure 14: Remittances to Latin America, top ten countries, 2005
• Citibank
• Bank of America
• Wachovia
• Wells Fargo
• Hispanics and credit cards
• Hispanics and investments
  • Figure 15: Participation in employment-based retirement plans, by age and ethnicity, 2003
• Mortgages for Hispanics
• The American dream is within reach
  • Figure 16: Home ownership rate, by race/ethnicity, 1994-2005
• Mortgage statistics
  • Figure 17: Approval of mortgage applications, by ethnicity, 2003
• Home values among Hispanic homeowners
• Hispanic housing costs
• Sub-prime lending to Hispanics
  • Figure 18: Sub-prime loans share of home loans and refinanced loans, by ethnicity/Hispanic origin, 2004
• Home equity loans and lines of credit
• Mortgage affordability programs
• Geographic distribution of Hispanic homeowners
  • Figure 19: Geographical distribution of Hispanic homeowners in the U.S., 2006
• Hispanics and Insurance
• Introduction
  • Figure 20: Top five insurance advertisers and Hispanic advertising spend, 2003
• Allstate
• 21st Century Insurance
• State Farm
• Advertising and Promotion
• Advertising spending
  • Figure 21: Top financial services industry advertisers to Hispanics, 2003
• Direct mail
  • Figure 22: Banamex USA Visa advertisement, May 2006
  • Figure 23: Bank of America Efectiva Visa advertisement, March 2006
  • Figure 24: Bank of America Visa advertisement, January 2006
  • Figure 25: Ameriquest, February 2006
• The Consumer
• Summary highlights of consumer surveys
• Banking relationships
• Reasons for choosing a banking institution
• Sending money
• Insurance
• Hispanics and banking
• Banking relationships by gender, age and ethnicity
  • Figure 26: Hispanics that do or do not have a banking relationship, by gender and age, May 2006
  • Figure 27: Banking institutions used by Hispanics, by age, January-September 2005
  • Figure 28: Banking institutions used by race/ethnicity, January-September 2005
• Banking relationships by income
  • Figure 29: Hispanics that do or do not have a banking relationship, by income and education, May 2006
  • Figure 30: Banking institution used by Hispanics, by income, January-September 2005
  • Figure 31: Banking services used by Hispanics, by income, January-September 2005
  • Figure 32: Ownership of credit cards--Hispanics and overall, by household income, January-September 2005
  • Figure 33: Hispanics ownership of credit cards, by type, by household income, January-September 2005
• Banking relationships by region and area type
  • Figure 34: Hispanics that do or do not have a banking relationship, by region and area type, May 2006
  • Figure 35: Banking services used by Hispanics, by region, January-September 2005
• Banking relationships by household size, nativity, and length of time in the U.S.
  • Figure 36: Hispanics that do or do not have a banking relationship, by household size and nativity group, May 2006
  • Figure 37: Hispanics that do or do not have a banking relationship, by number of generations family has been in U.S. and years individual has been in U.S., May 2006
  • Figure 38: Hispanics that do or do not have a banking relationship, by language primarily spoken in the home and ethnicity of neighborhood, May 2006
• Banking services used by Hispanics vs. non-Hispanics
  • Figure 39: Lending services used by Hispanics vs. white non-Hispanics, January-September 2005
  • Figure 40: Other banking services used by Hispanics vs. white non-Hispanics, January-September 2005
• Why bank was chosen
  • Figure 41: Why bank was chosen by Hispanics, by gender and age, May 2006
  • Figure 42: Why bank was chosen by Hispanics, by income and education, May 2006
  • Figure 43: Why bank was chosen by Hispanics, by investor (household assets >$10K) or non-investor, and primary language, May 2006
• Money transfer services
  • Figure 44: Hispanics that have sent money to friends or relatives in the last six months, by gender and age, May 2006
  • Figure 45: Hispanics that have sent money to friends or relatives in the last six months, by income, and Investor (assets >$10K) or non-investor, May 2006
  • Figure 46: Hispanics that have sent money to friends or relatives in the last 12 months either within or outside the U.S., by income, January-September 2005
  • Figure 47: Hispanics that have sent money to friends or relatives in the last six months, by primary language and nativity, May 2006
  • Figure 48: Hispanics that have sent money to friends or relatives in the last six months, by census region and area type, May 2006
• Using banks to send money
  • Figure 49: Hispanic respondents that used a bank (rather than another institution) to send money to friends or relatives in the last six months, by income, and investor (assets >$10K) or non-investor, May 2006
  • Figure 50: Hispanics who have sent money within the U.S. in the last 12 months, how sent, by income, January-September 2005
  • Figure 51: Hispanics who have sent money outside the U.S. in the last 12 months, how sent, by income, January-September 2005
  • Figure 52: Hispanics that used a bank to send money to friends or relatives in the last six months, by nativity and primary language spoken, May 2006
  • Figure 53: Reasons Hispanic respondents that sent money to friends or relatives in the last six months did not use a bank, by income and primary language, May 2006
• Hispanics and investments
  • Figure 54: Investments owned and accounts held--Hispanic vs. non-Hispanic investors, January-September 2005
  • Figure 55: Mutual funds/brokerage accounts, by provider--Hispanic vs. non-Hispanic respondents who own mutual funds, January-September 2005
• Hispanics and insurance
  • Figure 56: Life/health insurance ownership--Hispanics vs. non-Hispanics, January-September 2005
• Health insurance
  • Figure 57: Health insurance policy, how obtained--Hispanics vs. non-Hispanics, January-September 2005
  • Figure 58: Health insurance provider--Hispanic vs. non-Hispanic, January-September 2005
• Life insurance
  • Figure 59: Type of life insurance owned--Hispanic vs. non-Hispanic respondents, January-September 2005
  • Figure 60: Life insurance provider--Hispanics vs. non-Hispanics, January-September 2005
• Auto insurance
  • Figure 61: Auto insurance owned--Hispanics vs. non-Hispanics, January-September 2005
  • Figure 62: Auto insurance provider--Hispanics vs. non-Hispanics, January-September 2005
• Industry Associations