The Rite Loan
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Transcript of The Rite Loan
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S+AAs
The Rite LoanA loan created
with the next generation in mind.
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Are credit unions neglecting animportant target market?
Can credit unions afford to keepignoring the booming teen market and
the trends?
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Quinceaera
A rite of passage for fifteen-year-old Latina girls.
It is a community and family celebration full of traditionand meaning when a young girl is symbolically escortedinto womanhood by her family and the event iswitnessed by her community.
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Debutant Ball/Debut:
The event traditionally referred to as The Debutantes
Ball, is for a young lady from an aristocratic or upperclass family who has reached the age of maturity, and
as a new adult, is introduced to society at a formal
presentation known as her debut or coming out.
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Lauren Macaregs Debut
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Invitations
Gown
Location FoodCake Band/DJ
Pictures
Decorations/Flowers
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Source: Money Magazine, September 1, 2006 Issue
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$35,885.02
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What can credit unions do forthese families who are aboutto spend thousands of dollars
they dont have?
How can credit unions get a
piece of the pie?
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Quinceaera Loan
Given loan amount of $20,000
An interest rate of 1.500%A term of 5 years
Monthly payments will be $346.20
Interest = $771.87
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Debutant Loan
Given loan amount of $22,000
An interest rate of 1.800%A term of 5 years
Monthly payments will be $383.69
Interest = $1,021.33
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WHY?
More than 400,000 American Latinasturning 15 each year*
With average costs constantly rising, theimpact that CUs could have on thefinancial, in addition to the culturalimportance, should not be underestimated
*Once Upon a Quinceaera: Coming of Age in the USA, by Julia Alvarez
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WHY?
With price tags of $10,000 to $80,000these coming of age parties now rivalweddings in costs and, in some respects,
outpace them.*
A majority of these parties are funded byhigh-interest credit cards - CUs can givethem a better alternative
*New York Times, May, 2006
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WHY?
Loyalty to credit unions at a young age
Loyalty from family members
Free word of mouth marketing Be the first credit union to focus on this
group and this need
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The Quintero Family
Why?
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How?
Offer like every other personal loan, butemphasize the purpose and incredible rate
Use your member data to target parents,
grandparents and students
Regularly advertise online, with email blasts,and both youth and regular newsletters
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What else?
Automatically open a free savings accountfor celebrant and make a deposit
Give existing teen member a deposit
Verifies age and use of loan
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What else?
Offer a chance at free services (contests,quarterly promotions, etc)
Work with reputable vendors and refermembers for packages with discounts
Use teen members for testimonials
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Last thoughts
Families all want to mark certainmilestones in a way that lets children know
theyre proud of accomplishments
but
These coming of age celebrations have
grown-up price tags.
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Thank you.