StartABank Sees Surge In Hispanic Bank Activity.

Fueled by the estimated $600 billion in Hispanic purchasing power in 2003 (Pew Hispanic Center), and the realization that fewer than 30% of Hispanics have a banking relationship, there has been a recent surge in Hispanic bank activity. Startabank, a consulting firm specializing in de novo banking, cites the emergence of several organizing groups nationwide as evidence that this market is experiencing explosive growth.

Where does this trend come from? Hispanics themselves, who realize that they are the best judges of the financial needs of the Hispanic community, are taking steps to bring banking services to the communities in which they reside.

“I am amazed at how rapidly we, Hispanics, as well as our culture and traditions, are now strongly positioned throughout southern California in every part of life,” said Maru Davila, CEO and Founder of a telecom company and former bank director originally from Mexico organizing her second bank in San Diego. “As a result of this Hispanic boom, several financial institutions have developed special Departments to service our group’s banking needs, which, though beneficial, only go half way and do not offer products and services uniquely targeted to our needs, customs and way of life. The bank we plan to open will be devoted to Hispanics, and will devote every day and every minute to what we Hispanics need in banking, how we like to do business, and how we relate to people.”

Frank Lopez and Manny Marquez Jr., who are in the process of organizing a bank in Santa Ana, California agree.

“Hispanics come to this country with one identity, but develop another as they assimilate to the American way of life,” said Marquez. “But assimilation doesn’t overshadow the values they had when they came to this country; it enhances them. These individuals are entrepreneurial by nature, or they wouldn’t have made the trip. Once they’re here they expand on that entrepreneurial instinct and try to achieve the same things Americans do. A bank relationship enables them to do this, and further strengthens their identity by giving them independence and a successful status among their peers. By catering to the unique identity developed by these individuals a bank can help them reach their goals, which is what we intend to do with our bank.”

While California and other border states are certainly experiencing the Hispanic banking boom, its not just the border states that are generating interest. Startabank has received inquiries from markets including New York, Denver, and Washington DC, which can likely be attributed to the fact that Hispanics have migrated from border states throughout the country, resulting in second and third generation Hispanic residents who are assimilating to life and money in the US.

“Hispanics are culturally diverse and acculturated,” said James Perez Foster, a second generation Dominican and hedge fund manager organizing a bank in Denver, Colorado. “By servicing and educating the Hispanic market we can help them achieve the financial knowledge and success that has eluded many of them thus far, simply because existing financial institutions are failing to understand the financial priorities and language-based needs of the Hispanic consumer.”

Adds Elena Sisti, a 25-year Citibank banking veteran originally from Venezuela working on a startup to serve the Queens, Brooklyn and Manhattan areas, “Not only are Hispanics underserved due to their unique service and language needs, but widespread consolidation makes it looks like the banks are abandoning people. By focusing on financial education and building trust we can help the Hispanic consumer and small business owner achieve financial independence.”

Julio Lopez-Brito, president of NuAmerica Corp., in Washington DC, agrees. “Even with larger competitors, such as Bank of America Corp., making a concerted effort to court Hispanic consumers and business owners, there is room for a bank with a Hispanic focus, and Hispanic professionals who are both shareholders and customers.”

Lopez-Brito, who counts former FCC Commissioner Henry Rivera, and former New Mexico Governor Toney Anaya, as part of his organizing group, said in a recent interview that his plans to serve the Northern Virginia and Baltimore-Washington Corridor (Greater DC) markets will be enhanced through the addition of a strategic financial partner. This partner, a significant U.S. regional financial institution with $30-$50 billion in assets, will act as a founding member of the institution and support the growth and development of the new bank with its extensive resources.

Startabank believes the Hispanic bank opportunity is being aggressively developed nationwide, and expects these ventures to be successful because of the organizers setting things in motion. However, they expect the most successful institutions will be spearheaded by Hispanics themselves, who can clearly identify and relate to the unique service needs of this market. Startabank is currently hosting several workshops nationwide to educate interested parties on the basics of forming a new bank in an effort to support the Hispanic bank initiative.

For more at http://www.hispanicbankmarketing.com