With there being an estimated 52 million Latinos living in the United States, half of the 52 million are reported as living under-served when it comes to financial banking. Due to a possible fear of rejection because of their racial background, Latinos are resorting to financial services like payday lenders, check cashiers, and other high cost banking services instead of going to a bank. This prolonged situation can result in an unsustainable economy and needs to be corrected.
The attempt to correct this will begin this September 30th in Washington, D.C.
While celebrating Hispanic Heritage Month, the Congressional Hispanic Caucus Institute will hold its annual Public Policy conference said to be joined by 4,000 people who will take part in the festivities and conference. The conference will be a platform to address the social and economic issues that are felt by Latinos in America today.
One way Latinos will be able to take a hold of their banking services is through the Master Your Card: Oportunidad. The Master Your Card: Oportunidad is a coalition created by CHCI to educate Latino communities on how to use electronic payment technologies.
Former Speaker for the California Assembly and National Chair of Master Your Card: Oportunidad, Fabian Nunez said that “Latino families are financially under-served at nearly twice the national average. Failing to address this problem now will allow this financial disadvantage to snowball as the Latino population expands, trapping our children in a self-perpetuating cycle of financial wheel-spinning,”
Nunez goes on to state how it is, “imperative that we provide education and resources that demonstrate how using the right financial tools in the right way can facilitate entry into the financial mainstream–because as the Latino community gets ahead, we all get ahead.” Suggesting that if more Latinos learn to be more financially sound, using the financial tools available in banking, the economy along with the group will benefit.
According to census predictions, by the year 2050 Latin Americans living in this state will be about 130 million. What this estimation shows is that there can be growth for the country by enabling the involvement of Latinos into the financial mainstream.
“Acting now to better include the Latino American community in the financial mainstream isn’t just the right thing to do,” Nunez said, “it’s also a tremendous opportunity for the American economy.”
Largely distrustful of financial institutions, Latinos opt to not place earnings in a bank and ignore the benefits that come from modern financial technologies. Such modern financial technologies like making payments with prepaid cards, mobile wallets, pay bills online, receive wages via direct deposit, and make money transfers between cards to family members without the need of a bank account are being ignored for alternative services that may cost more.
“By putting the right tools into the hands of unbanked and under-banked Latinos, and making sure they know how to use them to their advantage, we can provide a gateway to financial inclusion,” said Nunez, furthering the importance in making Latinos more financially capable.
Giving Latinos more economic independence will enable Latino consumers to become more a part of the financial institution that could see a shift in the economy. It could help the current generation and the future generations to come.