By Claire Moraa
- Collective revenue from financial services targeting Latino consumers could potentially grow by more than $90B by 2030
- Latinos represent only a fifth of the U.S. population but contributed to 25% of new business startups in 2021
Latinos are set to propel the financial-services market with a projected $90 billion revenue by 2030. Their significant contribution to the overall entrepreneurial landscape in the United States cannot be ignored. In the last 14 years, Latino-owned businesses have seen a growth rate of 55% in terms of their workforce, while white-owned businesses an 8% growth rate.
Why This Matters: The Latino community in the U.S. is experiencing rapid growth, significantly contributing to the country’s economy. However, this community often faces challenges in wealth accumulation and opportunities. These disparities can be attributed to various factors such as language barriers and cultural barriers, lack of targeted financial education and outreach programs and income inequality. For instance, for every dollar a White American earns, a Latino earns 27 cents less.
Despite the discrimination, Latino business owners view their ventures as not just individual enterprises but as contributors to the well-being of their communities. Long-term success is seen as intertwined with community prosperity; a key ingredient which has translated to their success. With this spirit, the financial-services market could jump to an 8% growth by 2030.
Financial institutions are starting to recognize the untapped potential of the Latino market and take proactive steps to serve this vibrant and growing community. Efforts to promote financial inclusion among underrepresented communities can result in more Latinos accessing and utilizing financial services. By doing so, they can not only capture a significant share of the projected revenue growth but also contribute to economic empowerment and financial inclusion for Latinos.
Situational Awareness: To fully realize this growth potential, financial institutions must prioritize strategies that enhance Hispanic inclusion, representation, and access to financial services. This includes targeted marketing efforts, culturally sensitive and multilingual customer service, and expanding financial education and outreach programs specifically designed for Latinos.
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