Marketing financial services to Hispanic American consumers: a portfolio‐centric analysis

Abstract

PurposeTo provide financial service marketers with information useful in targeting and marketing financial services to Hispanic American consumers.Design/methodology/approachIt profiles the changing demographics of the Hispanic American financial services market and, utilizing data from the Survey of Consumer Finances, tests three hypotheses to compare financial service consumption patterns of Hispanics with those of non‐Hispanic whites.FindingsThe paper shows that the Hispanic American segment has grown in size and importance over the last decade, but that Hispanics differ markedly from their non‐Hispanic White counterparts in terms of financial product preferences and investment asset portfolio composition. Further, Hispanic Americans trail their non‐Hispanic White counterparts in terms of breadth and depth of financial holdings, particularly in the area of more risky but historically higher return asset categories.Research limitations/implicationsThis study examines the results of financial decisions at one point in time. Future research could involve primary studies to determine whether, financial consumption behavior changes in Hispanics over time, as they become more acculturated, and why Hispanics favor liquid short‐term assets to more risky, but potentially higher returning, longer‐term instruments.Originality/valueThe article provides value to financial service providers by highlighting opportunities in the Hispanic American market and offering suggestions for more effectively marketing to the Hispanic community. Among the suggestions are recognizing and reflecting the importance of emotional positioning in financial services promotion, employing both Spanish and English language communications, and sponsoring Hispanic community‐based programs to build brand awareness and loyalty.