![BankThink on financial well-being](https://arizent.brightspotcdn.com/dims4/default/d4d6673/2147483647/strip/true/crop/7360x4912+0+0/resize/740x494!/quality/90/?url=https%3A%2F%2Fsource-media-brightspot.s3.us-east-1.amazonaws.com%2F2e%2F4a%2F47bef78e4a3fad7cf28643c14161%2Fadobestock-3719740201.jpeg)
Most headlines ahead of this year's presidential election are missing the single
A graying America means fewer workers, less production, higher prices and declining tax revenues. Immigrants have been and always will be our first line of defense for maintaining the promise and power of the American economy. And
Today,
Yet, a
One of the main drivers behind this lived reality for many Hispanics today is the seemingly willful inability of some of America's largest financial institutions to properly assess their financial ability and stability. Despite the U.S. Hispanic population's growing size and buying power, the
The Federal Reserve's top regulator praised industry efforts to expand access to banking services, but warned about financial stability risks.
We must find better ways to successfully integrate Hispanic immigrants and equip them to overcome these systemic barriers to success so that we all might thrive. In its report, the Financial Health Network says financial providers have a key role to play in reversing this trend. Specifically, the group calls for the use of alternative data, including home country credit data, to expand underwriting capabilities. It also encourages providers to deepen relationships with community groups to better support retirement planning.
This directive to better data is sound advice. The key, though, is not only in data, but also a deep understanding of the unique attributes of this population. For example, most first-generation Hispanics in the U.S. live in multigenerational households and most family members hold multiple jobs. This helps insulate a household in the case of a job loss. Instead of defaulting on a loan, the family can prioritize critical expenses like food, housing and transportation with overlapping support from each member. That insight is only one of many examples that can help guide lending to people who would otherwise have little supporting data to share.
The reality is that the fintech and banking industry has much to gain by lending to Hispanics. And over the coming years and decades, as the Hispanic market continues to grow in size, influence and buying power, even more companies will seek to capitalize on this opportunity. From landlords to utilities to furniture companies, they will all face the same challenge of how to affordably serve a demographic that does not conform to traditional American credit norms.
Those that can find a way to serve Hispanics responsibly can both earn money for shareholders and return value to customers. In return, empowered, financially stable and resilient Hispanics have much to offer the United States.