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NCLR Releases Report on California Latinos and Financial Access and Inclusion

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FOR IMMEDIATE RELEASE                                    Contact:
September 10, 2013                                                Julian Teixeira
                                                                               (202) 776-1812
                                                                               jteixeira@nclr.org


Report highlights links between naturalization and financial engagement, recommends solutions to increase Hispanic Californians’ financial capacity

LOS ANGELES—At a morning panel discussion, NCLR (National Council of La Raza) released a report entitled “Latino Financial Access and Inclusion in California.”  The report’s findings were based on an NCLR survey of over 1,000 California Latinos conducted from January to April 2012 that focused on levels of financial engagement.  Latinos continue to be among the most unbanked ethnic minorities in the United States.  The report highlights the challenges confronted by the unemployed, differences in financial engagement by citizenship status and the use of bank technology by participants.

The report found an important link between naturalization (citizenship) and increased usage of financial systems:  noncitizen Latinos are less likely to engage in mainstream banking practices.  The report also found that 73 percent of participants managed to put away some savings despite the down economy and good customer service was paramount to deciding where to bank.

“As the House of Representatives debates how to overhaul our nation’s immigration system, it is important to note the link between immigration status and engagement in our financial institutions,” said Delia de la Vara, Vice President, California Region, NCLR.  “Many eligible California immigrants have been unable to naturalize because of cost-prohibitive fees, while others may be struggling to find a way to fully legalize their status under current law.  There is no doubt that Hispanics are an increasingly critical consumer base, particularly in times of economic recovery when their full participation will stimulate the economy through purchases and savings.  The more fully engaged in financial services Hispanics are, the more they and the nation benefit.”

The survey also delved into the use of technology for banking purposes, finding that younger California Latinos were more likely to use mobile banking technology compared to older Latinos.  Those who had a bank account were more likely to have access to the Internet than Latinos without a bank account and were more likely to have performed a financial transaction using this medium.  Those who demonstrated reluctance to using the Internet for this purpose were primarily concerned with the security of personal information.

“Our clients who participated in this research indicated that there is a great need in their community for culturally relevant and trustworthy financial guidance as a fundamental service,” said Maria Cabildo, President of the East LA Community Corporation (ELACC), an NCLR Affiliate.  “Unfortunately, there are many predatory financial products that take advantage of low-income Latinos.  There need to be more financial institutions that advise them on how to reach their goals, such as purchasing their first home or saving for their citizenship application.  This would not only serve Latino communities throughout California but also strengthen the state’s economy.”   

The report details a body of recommendations to increase Californian Latino financial engagement, including expanding citizenship and economic integration, increasing account ownership through goal-based outreach and product development, promoting personal savings and bridging the tech divide with trusted partners to assuage fears of privacy violations.

“This report reflects what we see each day in the customers we serve,” said Jesse Torres, CEO, Pan American Bank.  “There is a gap in our community and I hope that through this report it will shed light on the need for more banks to provide Latinos with financial services, such as citizenship loans.  Latinos want to become citizens but need access to sound financial products to allow them to realize their dreams of full participation in American society.”

“Bringing Latinos into the practice of engaging financial institutions to create savings, make purchases and manage their personal finances will be of huge benefit, not just to their long-term success, but to the nation’s short- and long-term economic growth and stability.  We are encouraged that through building the right partnerships and engaging in purposeful outreach and educational efforts, we will be able to effectively reach the underserved Latino community,” concluded de la Vara.

View the survey findings and the report in its entirety.


NCLR—the largest national Hispanic civil rights and advocacy organization in the United States—works to improve opportunities for Hispanic Americans.  For more information on NCLR, please visit www.nclr.org or follow along on Facebook and Twitter.

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