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

bdominguez@guadalupecu.org505-216-0459