immigrant bank
Still, experts say these problems can be overcome with patience and a willingness to take the time to understand immigrant banking’s unique dynamics. [1]
When Bank of America Corp. said it was testing a new credit card available to customers who may be illegal immigrants, the reaction was predictably harsh. [2]
There’s plenty of growth potential in serving immigrant populations, but also plenty of transition issues to surmount. [...] Combined with the fact that many immigrant communities are “under-banked” ‘ only 56% of U.S. Hispanics use banks, compared with 90% of the overall population ‘ the potential for account growth, both consumer and small business, is enormous. [1]
They also reflect a fact faced by every retail business in the United States. [...] Last month, Bank of America said it had started a pilot program in the Los Angeles area late last year that didn’t require a Social Security number to sign up for a credit card. [2]
Hispanics may speak a common language, Spanish, but otherwise differentiate among themselves. [1]
For years, U.S. banks have made attracting immigrants a major focus of their business strategy, working to sell services that include everything from traditional checking accounts to wire transfers used to send money to relatives back home. [...] Lewis responded to the controversy in a column in The Wall Street Journal, writing the bank is complying with the provisions of the USA Patriot Act, which set up the guidelines that allows the bank to accept official identification sources issued by foreign governments — including the matricula consular. [3]
Profit margins also may be low, at least initially, given upfront marketing outlays and the fact that many of these customers fall into the “low income/high-maintenance” category. [...] Bank of America estimates that 78% of the nation’s 39 million Hispanics lives within its franchise area, representing 60% of the expected population growth in key markets within its 21-state footprint. [1]
While credit card use among the nation’s 42 million Hispanics is on the rise, a substantial number of Latino households don’t have access to credit, according a survey conducted by the National Council of La Raza, which found that 80 percent of American households use credit cards compared with only 56 percent of Hispanic households. [2]
Even the basics of daily banking pose some special requirements, such as bilingual tellers and call center representatives, multilingual Web sites and tailored product and service offerings. [1]
“As a business owner, you sell to whomever comes into your store. [...] The cards are merely the latest progression for an industry that has spent millions to attract customers in the country’s growing Latino community — and among the estimated 12 million illegal immigrants living in the United States. [3]
Sources:
[1] BAI Online | Banking Strategies | Immigrant Outreach (Print Version)
[2] cbs2chicago.com - Bank Of America Woos Illegal Immigrant Customers
[3] Bank Of America Woos Illegal Immigrant Customers - wcbstv.com