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Reaching Out to Untapped Markets . Brenda Dominguez Chief Financial Officer Guadalupe Credit Union Santa Fe, New Mexico. Is Organic Growth Dead?. Guadalupe Credit Union Growth. 2000 Strategic Planning Session. Blue Ocean Opportunity. - PowerPoint PPT Presentation
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Reaching Out to Untapped Markets
Brenda DominguezChief Financial OfficerGuadalupe Credit UnionSanta Fe, New Mexico
Is Organic Growth Dead?
Guadalupe Credit Union Growth
Assets Members1948—2000 $30M 4,800
2000—2012 $125M 13,200
1st Qtr 2013 $130M 13,600
2000 Strategic Planning Session
First Generation
Second Generation
Third Generation
Financial Needs
Transactions, Remittances
Core banking services
Retirement, Investments
Financial Experience
Little to none Varies Wide experience
Language Preference
Largely native language
Largely bilingual Primarily English
Sophistication of Financial
Needs
Low, one or two needs
Majority of needs around core banking
services
Sophisticated, needing advice and assistance
with asset accumulation
Blue Ocean Opportunity
“Lasting success comes from creating 'blue oceans': untapped new market spaces ripe for growth.”
Blue Ocean Strategy, W. Chan Kim, 2005
Aging MembershipAverage Age
US Credit Union members
47
US Hispanics 27
Guadalupe Credit Union members
42
First Steps
• Research– CUNA’s Hispanic Quick Start Kit– Networking
• Giving back
First Steps
• Staff cultural sensitivity– Not everyone was on board
• Spanish language skills– Se habla español– Spanish-speaker distribution
Trust
• Open conversations
• Safe place to share the real story
Policies & Products• CIP policy: accept any
non-expired government-issued photo ID
• Appropriate products based on tax status and IRS requirements
• ITIN
Lending Practices
• Alternative credit
• APR
Marketing
• Relationships paramount
• Single simple Spanish brochure
Marketing• Partnerships
– Somos un Pueblo Unido– Adelante: Juntos los
Jueves– Public Schools– Community College ESL
program– SEG brown bag lunches
Location
• 2003: new main office & branch
Fast Forward: 2008
Assets Members
2000 $30M 4,800
2008 $70M 8,000
Approx. 1/3 of members doing business at the main office in Spanish.
Repercussions
• Lobby overflowing• Slow transaction
time
Opportunity
• REAL Solutions best practices• $70K NCUF grant for new office in
immigrant neighborhood• Focus groups
2008: New branch on Airport Rd.
Further adaptation• Recruited bicultural staff• Alternative to tandas• Payday lending alternative• Non-member
check cashing• Expanded remittance• Micro-business loans
Further adaptation• New hours• Children’s area• Take-a-number system• Plasma screens in
Spanish & English• Expanded Spanish-
language brochures
Further adaptation
• El Poder Es Tuyo• Coding language preference• Bilingual newsletter
Fast Forward: 2012
Guadalupe Credit Union
Assets Members
2000 $30M 4,800
2008 $70M 8,000
2012 $125M 13,200
Branch Statistics
Airport Rd. Branch
Members 1,678
Deposit Balances $3M
Loan Balances $8.5M
Loan-to-share 295%
Branch Statistics
Airport Rd. Branch
Balance sheet products per member
2.22
Avg. Share Bal $1,680
Delinquency 1.32
Demographic changes2008-2012 % IncreaseUnder age 18 33%
Age 21 to 30 57%
31 to 40 54%
41 to 50 43%
51 to 60 45%
Credit Union StatisticsGuadalupe Credit Union 2008-2012Net Spread > 5%
ROA 90 bp avg.
2011 ROA 1.03
2012 ROA 1.41
Locations 4 branch offices
2012 Additions
• Spanish language website• Remedial financial counseling in
Spanish and English• New standalone branch and greater
visibility!
New Airport Rd. Branch Opened Late Oct 2012
Final Thoughts
• Word-of-mouth is extremely powerful.• Understand the needs of both
documented and undocumented.• Enormous “blue ocean” opportunity in
this market.
Brenda Dominguez
Chief Financial OfficerGuadalupe Credit Union