Illegal Protest

Thanks to Immigration Watchdog for sending me on this little side research with this post of his

Some interesting articles I found while researching the term “unbanked” and even more proof that we are being invaded from our southern border by Hispanic illegal aliens and even the banking industry is ignoring loyalty to their country and capitalizing on the “emerging markets” that these illegal invaders represent.

GROWTH OPPORTUNITIES IN SERVING EMERGING MARKETS

The “Unbanked” Population and Growth of Alternative Financial Services

Recent studies indicate that a significant portion of the United States population lacks access to the banking system and spends significantly more on financial transactions as a result. According to a recent U.S. Treasury Department study, there are 28 million unbanked people in the U.S., and 45 million “underbanked” people lacking access to affordable credit. Another recent study indicates that the population underserved by banks is significantly concentrated among minorities; 46 percent of African Americans and 34 percent of Hispanic Americans are unbanked compared to about 10 percent of Caucasians. In addition, the majority of the unbanked are low-income; of 10 million unbanked households, 85% make less than $25,000 per year. A 2004 World Bank Study which analyzed official OCC data states that unbanked individuals tend to be less educated and less likely to have maintained financial savings over the past year; this population also tends to be younger and own fewer assets.
Hispanic immigrants are a significant unbanked group. According to the Pew Hispanic Institute, 58% of Latino immigrants are un-banked compared to 40% of all US households. The Federal Reserve Bank states that only 40% of Mexican immigrants have any formal relationship with a financial institution. In Iowa, the FDIC estimates that about 60% of the total Hispanic population is unbanked which amounts to more than 65,000 people.
Why “unbanked”? The U.S. Treasury estimates that the unbanked population has a buying power of over $650 billion a year and thus represents a potential new market for mainstream financial service providers. Furthermore, “unbanked” households have an economic incentive to enter the financial mainstream if they are incurring higher fees for completing transactions and undergoing personal security risks. Even though the concept of “banking the unbanked” appears to be a win/win proposition for service providers and underserved communities, there are several reasons why mainstream financial institutions are not serving the unbanked. Several studies concur that many providers: a) Cannot afford deviating from a traditional customer base; b) Have difficulties in providing outreach and marketing to unbanked populations; and/or c) Cannot overcome the risks and regulatory challenges of serving individuals with no credit or financial history.
On the other hand, unbanked populations are sometimes unaware of what is required to join the financial mainstream. According to the Brookings Institute, unbanked individuals find financial products inaccessible due to their lack of credit history, as well as inconvenient service processes, pricing and location. In the case of many immigrant groups, there is sometimes mistrust and almost no experience interacting with traditional financial institutions. In many cases, undocumented immigrants cannot meet identification requirement at the majority of financial service providers in their area.

Populations Growth Trends

According to the U.S. Department of Commerce, minority populations will increase 169% by 2050, while the non-minority population will only increase by 7% in the same time. U.S. minority populations will increase from 195.7 million to 210.3 million by the years 2050 constituting close to 50% of the U.S. total population. Minority populations also tend to be nearly 20% younger than the overall average. According to the U.S. Census, the 2005 median age of the Iowa Hispanic population is 26, which is 12 years less than the overall Iowa median age of 38.

Minority Purchasing Power Growth

A corollary of population trends – the purchasing power of minority populations – is also increasing greatly over the non-minority population. By 2045, the purchasing power of minority populations is expected to increase from just over $1.3 trillion in 2000 to more than $4 trillion. Fueled by a rapidly expanding Hispanic consumer market, the U.S. Chamber of Commerce estimates that U.S. Hispanic consumers spend $700 billion a year and are predicted to surpass a $1 trillion by the end of the decade.

Oversaturation and Decline of Typical Consumer Markets

Nationally, typical financial service consumers will decline significantly over the next decades in contrast to the rapid growth of Hispanic emerging markets. The University of Georgia’s Selig Center for Economic Growth estimates that while the Caucasian middle class purchasing power will grow 18% by the year 2010, the Iowa Hispanic purchasing power will grow over 200% by 2010. Nationally, the Hispanic purchasing power grew by 144% between 1990 and 2000 while the general market grew by 70% during the same period.