Abstract
With slower growth and a saturated market, credit card marketers are increasingly looking to expand their consumer base with new sources of new revenue. At 42.7 million, the Hispanic population in the United States presents tremendous opportunity for credit card marketers to offer products and services. Not only is this group the fastest growing minority in U.S., but also an underserved and under-utilized consumer base in terms of all financial products. However, this is not expected to come easily for marketers due to a fragmented Hispanic population with varying attitudes and an inherent apprehension toward credit cards and other banking products and services. Hispanic Americans and Credit Cards, a new report from Packaged Facts, offers an in-depth look at credit card usage patterns among Hispanic Americans. The report provides an overview of the Hispanic community in the U.S., including a look at financial trends in the Hispanic consumer market, and the key demographic characteristics of the Hispanic population. In addition, the study provides an in depth analysis of credit card usage within the various and diverse Hispanic cultural sub-categories, a look at brand preference and yearly versus monthly card usage, coverage of attitudinal drivers, and factors that may drive growth in the Hispanic consumer credit card market.
This timely, compact report offers insight and analysis on factors to growth in the credit card marketplace, demographic shifts, and consumer behaviors that affect the Hispanic consumer credit card industry.
Report Methodology
The information in Hispanic Americans and Credit Cards is based on both primary and secondary research. Primary research involved interviews with experts, public relations and industry analysts in firms that specialize in Hispanic market research. The report features unique analysis based on the Simmons Market Research Bureau Fall 2005 National Consumer Survey. Secondary research entailed data-gathering from relevant trade, business, and government sources, including company literature.
How You Will Benefit from this Report
If your company is interested in understanding and reaching the Hispanic market, you will find this report invaluable, as it provides a comprehensive package of information and insight about Hispanics and credit card usage not offered in any other single source. You will gain a thorough understanding of the current demographic profile of the Hispanic population. Contributing to that understanding will be a complete analysis of data from published and trade sources, and in-depth examinations of the economic and societal trends that influence the consumer behaviors of this large and influential segment of the population. Plus, you'll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.
This report will help:
- Marketing Managers identify credit card market opportunities and develop targeted promotion plans for credit card products of interest to Hispanics.
- Research and development professionals stay on top of competitor initiatives and explore demand for credit cards targeting the Hispanic population.
- Advertising agencies to develop messages and images that compel Hispanics to use credit cards.
- Business development executives understand the dynamics of the market and identify possible partnerships.
- Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.
Table of Contents
Chapter 1 Executive Summary
- Scope of Report and Methodology
- Overview of the Hispanic Population in the U.S.
- Tremendous Hispanic Population Growth
- Hispanic Income and Buying Power
- Hispanics, Largely Unbanked
- Hispanic Households More Likely To Be In Credit Card Debt
- Hispanics Hit Hard by ID Theft
- Hispanic Assimilation
- English Will Continue to Become More Dominant in Hispanic Market
- Demographic Highlights of Hispanics in the U.S.
- Financial and Marketing Communication Attitudes Within the Hispanic
Community
- Financial Attitudes of Hispanics Versus Other U.S. Populations
- Financial Attitudes of Hispanics from Different Heritages Versus Total U.S. Population
- Financial Attitudes of Hispanics: U.S. Born Versus non-U.S. Born within U.S. Population
- Attitudes of Hispanics from Different Heritages Versus Total U.S. Hispanic Population
- Attitudinal Differences Between U.S. and non-U.S. Born Hispanics
- Financial Attitudes Vary Within Different Hispanic Socio-Economic Groups
- Hispanic American Credit Card Usage and Brand Preference
- Current Credit Card Market
- Hispanic Credit Card Use Versus Other U.S. Populations
- Level of Education Affects Usage
- Personal Income Level Show Similar Pattern to Education
- Household Income Same Pattern, Lower Penetration
- A Look at Credit Card Usage by Socio-Economic Level
- Credit Card Usage by U.S. Born vs. Non-U.S Born Hispanics
- Credit Card Usage by Country or Region of Heritage
- Credit Card Usage by Country of Birth
- Credit Card Usage by Year Moved to the U.S
- Credit Card Usage By Level of Identification with U.S. Culture
- Credit Card Usage By Spoken Language Preference
- The Most Popular Card Brands
- Factors to Growth In The Hispanic Credit Card Marketplace
- The More Activity By Financial Players in Hispanic Market, The Better For The Credit Card Industry
- Partnering with Latino Organizations
- Expansion into Unbanked & Underbanked U.S. Hispanic Communities
- More Financial Advice and Education May Create New Opportunities with Latinos
- Make Use of Latino Media Outlets
- The Right Messaging and Segmentation
- Be Ever Vigilant Regarding the Big Box Threat
- Changing Immigration Laws May Affect Future Hispanic Consumer Base
Chapter 2 Overview of Hispanics in the U.S.
- Scope of Report and Methodology
- Tremendous and Continued Hispanic Growth
- Hispanic Population at 42.7 Million
- U.S. Population Growth Driven Largely By Hispanics
- Hispanics Youth A Major Force
- Nearly Half of Hispanic Population Found in California and Texas
- Table 2-1 Metro Areas with the Largest Hispanic Population Growth Rates, 2000-2004
- Mexicans Dominate Latino Population
- The Hispanic Community, Financially
- Aggregate Disposable Income Rising, but Incomes Remain Low
- Nearly 1 Million Latino Households Have Income of $100,000 or More
- Growth of Hispanic Businesses
- Hispanic Buying Power
- Table 2-2 Hispanic Buying Power: 1990, 2000, 2003, and 2008 ($billions)
- Cash Is King
- Hispanics, Largely Unbanked
- Unlikely To Participate In Retirement Plan
- Hispanic Households More Likely To Be In Credit Card Debt
- Hispanics Hit Hard by ID Theft
- Assimilation of the Hispanic Market
- Influence of Immigrants on the Wane
- English Will Continue to Become More Dominant in Hispanic Market
- Retro-Acculturation May Change Pace of Assimilation
- Most Latinos Live in Non-Hispanic Neighborhoods
- Demographic Portrait of Hispanics in the U.S.
- Younger Generations Dominate; Live in Southwest
- Education Highly Important Despite Low College Enrollment
- Homemakers and House Builders
- The Hispanic Household
- Table 2-3 Demographic Characteristics of the U.S. Hispanic Population, 2005
Chapter 3 Hispanic Financial Attitudes
- Introduction
- Financial Attitudes of Hispanics Versus Other U.S. Populations
- Table 3-1 Attitudes Toward Personal Financial Management: Hispanic versus Other Demographic Populations, 2005 (U.S. Overall Adult Population)
- Financial Attitudes of Hispanics from Different Heritages Versus Total
U.S. Population
- Hispanics of Cuban and Central American Heritage May Be Most Likely to Favor Credit Card Use
- Hispanics of Mexican Heritage Are a Mixed Bag
- Hispanics of Spanish Heritage Are Unique
- Puerto Ricans Virtually Indistinguishable from U.S. Population
- Table 3-2 Hispanic Attitudes Toward Personal Financial Management: By Country of Origin or Heritage, 2005 (U.S. Overall Adult Population)
- Financial Attitudes of Hispanics: U.S. Born Versus non-U.S. Born within U.S. Population
- Table 3-3 Hispanic Attitudes Toward Personal Financial Management: By U.S./Non-U.S. Born and Period Moved to the U.S., 2005 (U.S. Overall Adult Population)
- Financial and Marketing Communication Attitudes of Hispanics from
Different Heritages Versus Total U.S. Hispanic Population
- Puerto Ricans Prefer English
- Cubans Are Risk Averse; Aspire to Be Successful Financially
- South Americans Respond to Spanish; Prefer to Shop Around
- Central Americans Feel Respect from Spanish Language
- Advertisers
- Hispanics of Spanish Heritage Unlike Other Hispanics
- Hispanics of Other Heritages Mimic South and Central American Hispanics
- Table 3-4 Hispanic Attitudes Toward Personal Financial Management: By Country of Origin or Heritage, 2005 (U.S. Hispanic Adult Population)
- Table 3-5 Hispanic Attitudes Toward Marketing Communications: By Country of Origin or Heritage, 2005 (U.S. Hispanic Adult Population)
- Attitudes Among U.S. Born Hispanics
- Attitudes Among non-U.S. Born Hispanics
- Table 3-6 Hispanic Attitudes within Hispanic Population Toward Personal Financial Management: By Country of Origin or Heritage, 2005 (U.S. Hispanic Adult Population)
- Table 3-7 Hispanic Attitudes within Hispanic Population Toward Marketing Communications: By Country of Origin or Heritage, 2005 (U.S. Hispanic Adult Population)
- Financial Attitudes Within Different Hispanic Socio-Economic
- Group
- Table 3-8 Hispanic Attitudes within Hispanic Population Toward Personal Financial Management: By Socio-Economic Group, 2005 (U.S. Hispanic Adult Population)
Chapter 4 Hispanic American Credit Card Usage and Brand Preference
- Current Credit Card Market
- Hispanic American Credit Card Usage Demographics
- Hispanic Credit Card Use Versus Other U.S. Populations
- Table 4-1 Overview of Credit Card Usage by Race or Ethnicity, 2005 (Adult U.S. population)
- Table 4-2 Frequency of Credit Card Usage by Race or Ethnicity, 2005 (Adult U.S. population)
- Table 4-3 Monthly Number of Credit Card Transactions by Race or Ethnicity, 2005 (Adult U.S. population)
- Level of Education Affects Usage
- Table 4-4 Credit Card Usage by Educational Attainment: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
- Table 4-5 Monthly Credit Card Usage by Educational Attainment: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
- Table 4-6 Monthly Number of Credit Card Transactions by Educational Attainment: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
- Personal Income Level Show Similar Pattern to Education
- Table 4-7 Overview of Credit Card Usage by Individual Employment Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
- Table 4-8 Monthly Credit Card Usage by Hispanics by Individual Employment Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
- Table 4-9 Monthly Number of Credit Card Transactions by Individual Employment Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
- Household Income Same Pattern, Lower Penetration
- Table 4-10 Overview of Credit Card Usage by Household Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
- Table 4-11 Monthly Credit Card Usage by Household Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
- Table 4-12 Monthly Number of Credit Card Transactions by Household Income: Hispanics vs. Overall Population, 2005 (Adult U.S. population)
- A Look at Credit Card Usage by Socio-Economic Level
- Table 4-13a Overall Credit Card Usage by Race or Ethnicity: By Socio-Economic Level, 2005 (Adult U.S. population)
- Table 4-13b Overall Credit Card Usage by Race or Ethnicity: By Socio-Economic Level, 2005 (indexes)
- Table 4-14a Monthly Credit Card Usage by Race or Ethnicity: By Socio-Economic Level, 2005 (Adult U.S. population)
- Table 4-14b Monthly Credit Card Usage by Race or Ethnicity: By Socio-Economic Level, 2005 (indexes)
- Credit Card Usage by U.S. Born vs. Non-U.S Born Hispanics
- Table 4-15 Overview of Credit Card Usage: U.S. Born vs. Non-U.S Born Hispanics, 2005 (Adult U.S. population)
- Table 4-16 Monthly Credit Card Usage: U.S. Born vs. Non-U.S Born Hispanics, 2005 (Adult U.S. population)
- Table 4-17 Monthly Number of Credit Card Transactions: U.S. Born vs. Non-U.S Born Hispanics, 2005 (Adult U.S. population)
- Table 4-18 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. U.S. Born and Non-U.S. Born Hispanics, 2005 (percent and index)
- Table 4-19 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. U.S. Born and Non-U.S. Born Hispanics, 2005 (percent and index)
- Credit Card Usage by Country or Region of Heritage
- Table 4-20 Overview of Credit Card Usage by Hispanics: By Country or Region of Heritage, 2005 (Adult U.S. population)
- Table 4-21 Monthly Credit Card Usage by Hispanics: By Country or Region of Heritage, 2005 (Adult U.S. population)
- Table 4-22 Monthly Number of Credit Card Transactions by Hispanics: By Country or Region of Heritage, 2005 (Adult U.S. population)
- Table 4-23 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Country or Region of Heritage, 2005 (percent and index)
- Table 4-24 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Country or Region of Heritage, 2005 (percent and index)
- Credit Card Usage by Country of Birth
- Table 4-25 Overview of Hispanic Credit Card Usage: By Country of Birth, 2005 (Adult U.S. population)
- Table 4-26 Monthly Credit Card Usage: By Country of Birth, 2005 (Adult U.S. population)
- Table 4-27 Monthly Number of Credit Card Transactions by Hispanics: By Country of Birth, 2005 (Adult U.S. population)
- Credit Card Usage by Year Moved to the U.S
- Table 4-28 Overview of Credit Card Usage by Foreign-Born Hispanics: By Year Moved to the U.S., 2005 (Adult U.S. population)
- Table 4-29 Monthly Usage of Credit Cards by Foreign-Born Hispanics: By Year Moved to the U.S., 2005 (Adult U.S. population)
- Table 4-30 Monthly Number of Credit Card Transactions by Foreign-Born Hispanics: By Year Moved to the U.S., 2005 (Adult U.S. population)
- Table 4-31 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Year Moved to the U.S, 2005 (percent and index)
- Table 4-32 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Year Moved to the U.S, 2005 (percent and index)
- Credit Card Usage By Level of Identification with U.S. Culture
- Table 4-33 Overview of Credit Card Usage by Hispanics: By Level of Identification with U.S. Culture, 2005 (Adult U.S. population)
- Table 4-34 Frequency of Hispanic Credit Card Usage by Hispanics: By Level of Identification with U.S. Culture, 2005 (Adult U.S. population)
- Table 4-35 Monthly Number of Credit Card Transactions by Hispanics: By Level of Identification with U.S. Culture, 2005 (Adult U.S. population)
- Table 4-36 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanics by Level of Identification with U.S. Culture, 2005 (percent and index)
- Table 4-37 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanics by Level of Identification with U.S. Culture, 2005 (percent and index)
- Credit Card Usage By Spoken Language Preference
- Table 4-38 Overview of Credit Card Usage by Hispanics: By Spoken Language Preference, 2005 (Adult U.S. population)
- Table 4-39 Frequency of Credit Card Usage by Hispanics: By Spoken Language Preference, 2005 (Adult U.S. population)
- Table 4-40 Monthly Number of Credit Card Transactions by Hispanics: By Spoken Language Preference, 2005 (Adult U.S. population)
- Table 4-41 Overall Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Spoken Language Preference, 2005 (percent and index) Table 4-42 Monthly Credit Card Usage by Socio-Economic Level: Overall Population vs. Hispanic Population by Spoken Language Preference, 2005 (percent and index)
- Credit Card Usage By Brand
- The Most Popular Card Brands
- Table 4-43 Overall Credit Card Brand Usage, Bank Cards: Overall Population vs. Hispanic Population by Total Hispanic Users, 2005
- Popular Non-Bank Cards
- Table 4-44 Overall Credit Card Brand Usage, non-Bank Cards: Overall Population vs. Hispanic Population by Total Hispanic Users, 2005
Chapter 5 Factors to Growth In The Hispanic Credit Card Marketplace
- The More Activity By Financial Players in Hispanic Market, The Better For The Credit Card Industry
- Visa's Hispanic Campaigns
- Bank of America Hispanic Outreach
- MasterCard Partnerships
- Partnering with Latino Organizations
- MasterCard & LULAC
- US Bank's Affinity Programs
- Expansion into Unbanked & Underbanked U.S. Hispanic
- Communities
- More Financial Advice and Education May Create New Opportunities with Latinos
- Make Use of Latino Media Outlets
- AOL Latino Launches Personal Finance Channel, Dinero y Exito
- Personal Finance Magazine Launched By Hispanic Money Guru
- US Bank Partnered with Latina Style
- The Right Messaging and Segmentation
- Direct Mail Can Work
- Be Ever Vigilant Regarding The Big Box Threat
- Changing Immigration Laws May Affect Future Hispanic Consumer Base
