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ThinkNow Research - Hispanic Millennials and Financial Services
The Hispanic Millennial Project Wave 3 explores financial attitudes and behaviors among U.S. Hispanic millennials, emphasizing their pragmatic approach to money and the significance of financial stability over wealth. The research highlights the cultural tensions they face between traditional values and modern financial practices, indicating a need for financial education and support from banks. Key themes include their positive view of banks, openness to technology, and the ongoing pursuit of homeownership as part of the American dream.
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ThinkNow Research - Hispanic Millennials and Financial Services
- 1. The Hispanic MillennialProject Wave 3: Hispanics and Financial Services 2015January
- 2. 2Overview • Introduction • HispanicMillennial Project Overview • HMP Wave 3 Overview • Five Key Themes • Comparing Hispanic Millennials • Points of Tension • Implications for Marketers • What’s Next
- 3.
- 4. 4 Jose R. Villa President Sensis @jrvilla /in/JoseVilla ThinkMulticultural.com SensisBureau.com RoyEduardo Kokoyachuk Partner ThinkNow Research @ThinkNowTweets thinknowresearch.com/blog Roy Eduardo Kokoyachuk
- 5. 5 The Hispanic MillennialProject is a joint research study developed by cross-cultural advertising agency Sensis and market research firm ThinkNow Research.
- 6. 6 Innovative researchinitiative on U.S. Hispanic millennials Designed to compare Hispanic millennials to non-Hispanic millennials as well as their older Hispanic (35+) counterparts Digs deeper into points of tension, segmentation, and difference between U.S.-born vs. foreign born. www.HispanicMillennialProject.com The Hispanic Millennial Project
- 7. 7Hispanic Millennial Project Wave3: Financial Services • The initial wave established a deeper understanding of Hispanic Millennials and highlighted meaningful differences between this group and other cohorts. • The 2nd wave focused on healthcare, and explored attitudes and behaviors associated with health, diet, and exercise, as well as health- related technology, insurance, and the Affordable Care Act. • This 3rd wave explores attitudes and opinions among Hispanic Millennials about money, saving, financial well-being, and banking.
- 8. 8 BACKGROUND • Advertising &digital agency • 65 employees • 13 million in revenue (2014) • 17 years in business • Independent, minority-owned and certified (SCMBDC, SBA) • Offices in L.A. , DC, Austin, Atlanta CAPABILITIES • Research & Analytics • Strategic Planning • Media Planning & Buying • Creative Development • Branding & Package Design • Digital Marketing • Mobile & Website Development • Multicultural Marketing Integrated cross-cultural advertising agency
- 9. 9 Online Panel Over 30,000respondents to recruit from Nationally-representative, per Census Unique recruitment model that encompasses online and offline recruitment methods such as Spanish- language television advertising ThinkNow Research Research Fortune 500 clients Over 30 years of research experience specifically in the Hispanic market Only Hispanic market research company that owns & operates an in-house panel Experts in Hispanic Market Research ThinkNow Research provides innovative online market research solutions for companies looking to understand the U.S. Hispanic consumer. We specialize in researching the U.S. Hispanic demographic and other hard-to-reach consumers in order to deliver high quality research to our clients that bear actionable and meaningful results.
- 10. Hispanic Millennial ProjectOverview
- 11.
- 12. 12Why Hispanic Millennials? HispanicMillennials make up the second largest Hispanic cohort living in the U.S.
- 13. 13 21% of allMillennials are Hispanic… and will reach 23% by the year 2020 Source: Geoscape, American Marketspace, 2013
- 14. 14Why Hispanic Millennials? Inkey DMAs, Hispanic Millennials already represent the majority
- 15. 15Why Hispanic Millennials? Non-traditionalmarkets will witness the fastest Hispanic Millennial growth 24% 24% 24% 25% 25% 26% 26% 26% 26% 27% 29% 30% 30% 34% 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% Memphis Lexington Atlanta Bend, OR Minot-Bismarck-Dickinson (Williston) Salisbury Indianapolis Greenville-Spartanburg-Asheville-Anderson Myrtle Beach-Florence Charleston, SC Nashville Wilmington Greensboro-High Point-Winston Salem Charlotte Raleigh-Durham (Fayetteville) DMA/Hispanic Millennial % change (2013-2018) % CHANGE
- 16. 16 Yet 44% ofHispanic Millennials are foreign-born Source: Experian Simmons, Bicultural Hispanics (18-34) Spring Full Year Study, 2013 Series
- 17.
- 18. 18Research Methodology • ThinkNowResearch conducted a nationwide online survey during October, 2014. • A total of n=1,530 interviews were completed. Qualified respondents were segmented into one of the following five segments. In this presentation we will focus on three segments: • Respondents in each group were weighted to match US Census for gender, age and US region. Hispanic Millennials Hispanics 35+ Non-Hispanic White Millennials Origin Self-identify as Hispanic origin Self-identify as Hispanic origin Self-identify as White Non- Hispanic origin* Age 18 to 34 years of age 35 to 64 years of age 18 to 34 years of age Base Size N=303 N=307 N=307 The Hispanic Millennial Project research combined the following research elements: • Literature – An analysis of third party research on Hispanic Millennials • Secondary Research – An analysis of syndicated research data (U.S. Census Bureau, Experian Simmons, Geoscape, etc.) on Hispanic Millennials • Primary Research/Quantitative Research – Online survey data gathered by ThinkNow Research Research Abstract: *Non-Hispanic White (does not include African-Americans, Asians and other ethnic groups)
- 19. 19Acronyms • “HM” =Hispanic Millennials • “FHM” = Foreign-born Hispanic Millennials • “UHM” = U.S. Born Hispanic Millennials • “NHWM” = non-Hispanic White Millennials • “H35+” = Hispanics 35-64 • “FH35+” = Foreign-born Hispanics 35-64 • “UH35+” = U.S. born Hispanics 35-64
- 20. HMP Wave 3Overview
- 21. 21Hispanic Millennials &Finances Wave 3 Topline Findings • Finances are an important means to an end for the Hispanic Millennial and not the end in itself. • Younger Hispanics have a pragmatic approach to money and not overly irresponsible when it comes to spending. • We see a conscientious approach to finances and it is at the forefront of the post-recessionary consumer trend, as well as echoes behavior rooted in cultural norms. • The American Dream is still much alive yet the pursuit of that dream is pragmatic and steady.
- 22. 22Demographics: Income ofstudy participants Hispanic Millennial Income is similar but slightly lower than Non-Hispanics (A) (B) (C) B AC AC AC
- 23. 23Demographics: Contribution tohousehold income by study participants Despite the fact that HM slightly lower average household incomes, they remain self-sufficient. (A) (B) (C) B AC B B B B B CC
- 24.
- 25. 25Five Emerging Themes 1.Attitudes Towards Wealth – Money is important, but it is not everything 2. Approach to Finances and Savings – Are pragmatic and saving for their futures 3. Banking – Trust banks and have an overall favorable image 4. Technology – Open to new forms of banking 5. Homeownership – The American Dream is alive, but HM need help getting there
- 26. Theme 1: AttitudesTowards Wealth Money is important, but it is not everything
- 27. 27 Hispanic Millennials tendto associate wealth with having money to guarantee a good stable living. It is all about fulfilling needs, not connected with abundance (or over spending). Money matters, but it is not everything
- 28. 28Being wealthy isa goal (for both HM & NHWMs) …but it’s not the only goal for Hispanic Millennials 28 B B (A) (B) (C)
- 29. 29Hispanic Millennials definewealth as both material and non-material things 29(A) (B) (C) AC
- 30. Theme 2: Approachto Finances and Savings Arepragmaticandsavingfortheirfutures
- 31. 31Hispanic Millennials arePragmatic …and are not impulsive when it comes to spending 31 (A) (B) (C)
- 32. 32Hispanic Millennials areable to save more than other groups A (A) (B) (C) A
- 33. 33Hispanic Millennials aresaving for their future (A) (B) (C)
- 34. 34For Hispanic Millennials,avoiding debt is important 34 Hispanic Millennials are more debt averse than their parents and older Hispanics B (A) (B) (C)
- 35.
- 36. 36Hispanic Millennials havea surprisingly positive image of banks 36 (A) (B) (C)
- 37. 37Hispanic Millennials expecta close relationship with banks C (A) (B) (C)
- 38. 38Hispanic Millennials seebanks as being more trustworthy since the financial crisis 38 (A) (B) (C)
- 39. 39Hispanic Millennials aremore likely to value banks that care about the community and are innovative 39 B A B BC (A) (B) (C)
- 40. 40Hispanic Millennials caremore about accountability than reputation when choosing a bank. A A (A) (B) (C)
- 41.
- 42. 42Hispanic Millennials aremore open to innovation and new ways of conducting financial transactions 42 C C (A) (B) (C)
- 43. 43Hispanic Millennials areon par with the general market in their adoption of digital currency Hispanic Millennials show a higher preference for Apple Pay 43 (A) (B) (C)
- 44. Theme 5: Homeownership TheAmericanDreamisalive,butHispanicMillennials needhelpgettingthere
- 45. 45Compared to NHWM,Hispanic Millennials are less likely to indicate that they will get a mortgage 45 B B B B (A) (B) (C) B B B B
- 46. 46Hispanic Millennials believethat they can’t afford a down payment 46 (A) (B) (C) B
- 47. 47Of those HispanicMillennials that are planning to get a mortgage, they plan on getting one soon
- 48. 48Hispanic Millennials interestedin buying a house are currently saving for a down payment (A) (B) (C)
- 49. 49However, Hispanic Millennialsneed to be educated on how much they will need to save 49 (A) (B) (C)
- 50.
- 51. Hispanic Millennials vs.Hispanics 35- 64
- 52. 52Hispanic Millennials needmore financial guidance compared to Hispanics 35+ 52 Hispanic Millennials want banks to help educate them on financial topics. (A) (B) B
- 53. 53Hispanic Millennials trusttheir parents more than Hispanics 35+ when managing their finances 53 (A) (B) B
- 54. 54Hispanic Millennials aremore debt averse than older Hispanics (A) (B)
- 55. Hispanic Millennials vs.Non-Hispanic Millennials
- 56. 56Compared to Non-HispanicMillennials, Hispanic Millennials do not feel as financially overwhelmed A (A) (B)
- 57. 57Hispanic Millennials aremore likely to get a student loan and Pre-Paid Visa in the future compared to NHWM B (A) (B)
- 58. 58Hispanic Millennials morelikely to look to banks to get loans compared to Non-Hispanic Millennials Implication that NHWM have other options – such as family and credit cards 58(A) (B)
- 59. U.S. Born vs.Foreign-born Hispanic Millennials
- 60. 60Compared to USHM,Foreign born Hispanic Millennials are more cautious with their money 60 A (A) (B)
- 61. 61Foreign-born Hispanic Millennialsare more open to non-traditional forms of banking 61(A) (B)
- 62. 62 F F In-language banking servicesmore likely to influence where FBHM will bank A A (A) (B)
- 63. Hispanic Millennial Malesvs. Hispanic Millennial Females
- 64. 64Male Hispanic Millennialstend to contribute more to the household income compared to females 64 B (A) (B)
- 65. 65Hispanic Millennial femalesare more concerned about having a strong credit score and avoiding debt A (A) (B)
- 66. 66Hispanic Millennial malesmore likely to count on banks and credit cards to get loans As compared to Hispanic Millennial females B B (A) (B)
- 67. 67Compared to HMfemales, HM males are more open to non-traditional banking 67 B B (A) (B)
- 68.
- 69. 69 One ofthe most important ways to establish a deeper understanding of Hispanic Millennials is to comprehend the points of tension characterizing their lives. As marketers, we know points of tension provide powerful opportunities to communicate and connect with consumers. Points of Tension
- 70. 70 Among the definingcharacteristics we see in Hispanic Millennials are the numerous and deep cultural and psychographic points of tension they face. • Because they live in two cultures, caught between very different generations, and their proper life stage, they face tensions related to decisions about financial services. • We identified points of tension as it relates to finance.
- 71. 71For cultural reasons,Hispanic Millennials consider others when making financial decisions
- 72. 72Yet, mainstream culturecreates pressure to manage ones personal finances
- 73. 73Given their currentfinancial situation, Hispanic Millennials are in debt
- 74. 74Yet, strive tobe debt free and maintain strong credit
- 75. 75Being self-taught &self-sufficient versus needing support to become financially savvy & independent
- 76. 76Comfort with traditionalbanking methods and maintaining a close relationship versus adopting new forms of technology 76
- 77.
- 78. 78 Identify and leverage pointsof tension
- 79. 79Marketing Financial Servicesto Hispanic Millennials • Wealth matters, but the definition has evolved – Hispanic Millennials are seeking comfort, stability and are pragmatic about how they spend their financial resources • Building for a future of “we” rather than a future of “I” – Hispanic Millennial contribute to their families households and pride themselves in being self-sufficient as they build their collective future
- 80. 80Marketing Financial Servicesto Hispanic Millennials • Educate and empower Hispanic Millennials on finances – Hispanic Millennials have basic financial products (checking, savings) and are seeking to acquire additional more complex financial products in the future – Opportunity exists to offer educational programs within the context of offering solutions that can support long-term future financial success • Clearly define the role of banks in Hispanic Millennials lives – Hispanic Millennials view banks favorably and are more likely to value banks that care about the community and are innovative – By leveraging these key benefits, banks can start to build an emotional connection with this audience
- 81. 81Marketing Financial Servicesto Hispanic Millennials • Leverage technology and innovation – More and more Hispanic Millennials are turning to technology and innovation to manage and access financial services – Hispanic Millennials are open to non-traditional banking relationships with males being more open than females – Hispanic Millennials are open to digital forms of payment • The American dream is still alive – Homeownership continues to be an objective and source of pride for Hispanic Millennials – Opportunity for banks to help Hispanic Millennials realize their dream
- 82. Key Findings andImplications from previous HMP Waves
- 83. 83Key Findings Consistent ThemesAcross Waves 1-3 • Hispanic Millennials continue to believe in & be driven by the American dream – Hispanic Millennials believe much more in the “American dream” vs. non-Hispanic Millennials – The American dream is something Hispanic Millennials continually strive for – The American dream is more about self-fulfillment than it is wealth • Hispanic Millennials are more likely to agree versus non-Hispanics that owning a home is a top indicator of success • Among Hispanic Millennials, Apple is the brand most associated with success
- 84. 84Key Findings Consistent ThemesAcross Waves 1-3 • Hispanic Millennials generally report lower levels of stress • Hispanic Millennials have nuanced and multi-faceted definitions of concepts like wealth, health and happiness • Embrace technology – both for financial services and health
- 85. 85 Avoid Millennial Generalizations ApproachHispanic Millennials Differently than older Counterparts
- 86. 86 Spanish-Language Media IsKey to Reaching Hispanic Millennials Recognize and Leverage the Differences Between U.S. born and foreign-born Hispanic Millennials
- 87.
- 88. 88 Wave 3 researchalso surveyed African-American and Asian Millennials We’ve Expanding the HMP
- 89. 89 Contact us fora cross-cultural analysis of Millennials & Financial Services
- 90. 90 The Hispanic MillennialProject study continues with two more waves being released in 2015. Multi-phase Research
- 91. 91Next Phases ofThe Hispanic Millennial Project Upcoming Waves 4-5 Each wave of The Hispanic Millennial Project is focusing on a different topic relevant to this segment: • Wave 4: Food, Beverage & Alcohol ( April 2015) • Wave 5: Media Consumption & Digital Behavior (June 2015)
- 92. 92 Download the fullreports at www.HispanicMillennialProject.com follow-us on Twitter @HispMillennial
- 93. 93 Jose R. Villa President Sensis @jrvilla /in/JoseVilla ThinkMulticultural.com SensisBureau.com RoyEduardo Kokoyachuk Partner ThinkNow Research @ThinkNowTweets thinknowresearch.com/blog Roy Eduardo Kokoyachuk