Credit Cards Untapped Frontier: 42.7 Million Hispanic Americans
Sunday, 15 October 2006
In a slow-growth and saturated market, credit card companies may be sitting on a windfall of opportunity in the 42.7 million Hispanics currently residing in the US, according to Hispanic Americans and Credit Cards, a new report from market research publisher Packaged Facts.
With an estimated disposable income that could balloon to $1.1 trillion by 2010, reaching the US Hispanic community — and in particular those that are currently un-banked — means tapping into the wealth of the fastest growing US demographic, one that shows no signs of slowing down.
Highlighting the demographic nuances that play into current Hispanic credit card usage, as well as the hesitation for many Hispanics to avail themselves of the financial resources as currently presented in the market, Hispanic Americans and Credit Cards paints a picture of the enormous potential for credit card usage within the coming years.
But according to the report, marketers of credit cards and financial services will have to do their homework and broaden their horizons about the intricacies of the market, as understanding and effectively winning over the Hispanic market is not an easy puzzle to solve.
“Due to the tremendous amount of variables associated with this demographic, marketers need to think outside of the ‘one size fits all’ mentality if they wish to effectively penetrate the Hispanic purse,” notes Don Montuori, the publisher of Packaged Facts. “Understanding the different cultural characteristics, geographic origins and cultural backgrounds, the varying incomes, ages, and degrees of acculturation is key to effectively targeting and marketing to Hispanics.”