LOS ANGELES—Hispanic Millennials are savers and they are open to new forms of banking.
Those are two findings from Sensis’ third wave of its Hispanic Millennial Project, conducted in conjunction with ThinkNow Research. The third wave examines Hispanics' perceptions of money, savings, banking and financial wellbeing.
“Unlike most people in the United States, Hispanic Millennials have a much more positive opinion of banks," Sensis founder and President José Villa said. "And while they trust traditional banks, they are also very open to new banking technology. Hispanic Millennials want their financial institutions to be innovative and accountable.”
The growing U.S. Hispanic market represents more than $1-trillion in buying power.
Other key themes emerging from the report:
- Hispanic Millennials trust banks and have an overall favorable image of banks. “Despite distrust attributed to financial institutions in light of the financial crisis of the recent decade, Hispanic Millennials have a surprisingly positive image of banks compared to both older Hispanics and non-Hispanic Millennials,” the report stated—61% of Hispanic Millennials hold a very positive, or somewhat positive, image of banks compared to 54% of older Hispanics and 51% of non-Hispanic Millennials.
- Hispanic Millennials are open to new forms of banking. Hispanic Millennials are significantly more likely than non-Hispanic Millennials to embrace non-traditional forms of banking, the study found. The report noted that 58% of Hispanic Millennials are open to non-traditional banks without branches, such as Ally Bank, compared to 47% of non-Hispanic Millennials. Hispanic Millennials are also significantly more open to non-traditional banking companies, such as Amazon, Apple, Google or Facebook, the study explained.
- Hispanic Millennials are pragmatic and less impulsive when it comes to their approach to finances and savings. Hispanics young and old report that they are cautious or very cautious when it comes to spending money, according to the study. “Surprisingly, Hispanic Millennials are more effective and resourceful when it comes to saving for their futures compared to older Hispanics and non-Hispanic white Millennials alike. Only 7% of Hispanic Millennials indicate that they are NOT able to save any money monthly, compared to more than double the rate of non-Hispanic white Millennials and older Hispanics.”
- Money is important, but it is not everything. Hispanic Millennials tend to associate wealth with having enough money to guarantee stable living. “It is all about fulfilling needs and not connected with abundance (or over spending),” the study explained. “For the Hispanic Millennial, being wealthy is a goal but it’s not the only goal, indicating that they view finances as a means to an end.” When surveyed over half of Hispanics that are 35 years of age and older tend to disagree with the statement that being “wealthy” is one of the goals in life. Conversely, two-thirds of Hispanic Millennials agree that being “wealthy” is one goal.