 |
 |
|
America's Mainstream Minorities
MacroMonitor Marketing Report
November 2002
Vol. V, No. 13
|
 |
Does the growth in numbers of minority households translate into
increased marketing opportunities for financial-services providers? Using data from the
U.S. Census and from the MacroMonitor surveys (1994–2000), this report focuses on
the assimilated or mainstreamed minority households' potential as
financial-services customers. The resulting perspective suggests that African American, Hispanic,
and Asian households vary in the degree and level of participation in the mainstream
U.S. financial system given their differences in demographics and in life-stage
and financial profiles.
The MacroMonitor survey, by virtue of how it obtains the data (that is,
the respondents need to speak and read English and be comfortable in providing
detailed and sensitive information about their household finances), provides information
about minority households that are fully assimilated into the U.S. socioeconomic
and cultural mainstream. The resulting profiles of minority households,
therefore, represent those households that are most likely to be realistic prospects for
various financial products and services offerings.
Highlights from this report include the following:
- In terms of market size, African American households remain the largest ethnic
or racial minority group in the United States. Although the latest census data
indicate that the Hispanic population is now on parity with the African
American population, the larger size of Hispanic households results in a smaller
proportion of Hispanic households (9% of total U.S. households) vis-à-vis African
American households (12%).
- African American households generally have a higher proportion of
older household heads and thus are likely to be more focused on retirement needs
than are Hispanic and Asian households.
- The significantly high proportion of assimilated Hispanic households with
young children means a focus on financial products and services typically desired
by growing families: transactions, mortgages, life insurance, and credit cards.
- Assimilated Asian households represent the youngest and most well-educated
and affluent ethnic group in the
MacroMonitor database. Their financial profile
of high assets and high debt makes these minority-group members
particularly attractive to financial institutions. They are likely to be receptive to
online services, especially bill presentment and payment, given their youth and
high level of education.
MINORITY HOUSEHOLDS IN THE U.S. POPULATION
Institutions seeking to market financial services to minority households by appealing to
their sense of community, culture, or heritage will probably find rewards in that approach.
But households that are sufficiently well assimilated financially will be remarkably similar
to nonminority households in terms of their financial needs and the mix of products and
services that they will use to meet those needs.
It is clear that ethnic and cultural diversity will have an increasing impact on American society. The findings in this report suggest that financial institutions may benefit from a two-step approach to marketing to minority households. The first involves meeting their immediate and basic financial needs as they establish a foothold in mainstream U.S. society. The second step involves introducing a more traditional relationship-based approach as minority households fully integrate into the mainstream.
|
(Korean Inquiries)
(Japanese site)