LV offices developing strategies to attract Hispanic customers

Chris Jones

Tuesday, May 28, 2002 | 11:04 a.m.

Several Las Vegas banks say they are developing strategies to attract Hispanic customers.

Nevada's Hispanic population has increased significantly since 1990, creating new opportunities and challenges for banks.

According to that year's U.S. Census, the state's approximately 124,000 Hispanic residents made up only 10 percent of the population. By 2000, however, those totals had jumped to nearly 394,000 residents comprising about 20 percent of Nevada's population.

Aside from its overall growth, the Hispanic market is also attractive to bankers because many members of that community have never opened a banking account in the United States, said Dick Kovacevich, Wells Fargo & Co. Chairman and Chief Executive Officer, during a May 21 visit to Las Vegas.

"The (Hispanic) market has generally been underserved by banks and we're working on a lot of initiatives to make sure those people feel more comfortable coming to the bank, both in the consumer and retail banking side," said Kovacevich, whose San Francisco-based bank is the largest in Nevada. "(The Hispanic population) will certainly be one of our largest growth areas."

In Southern Nevada, Wells Fargo has reached out to the local Hispanic community -- as well as other minority groups and low-income residents of all races -- by offering free financial education classes at its community reinvestment outreach center.

Located at 1700 E. Charleston Blvd. -- within walking distance or a short drive from some of the Las Vegas Valley's largest pockets of Hispanic residents -- the center provides both English and Spanish language classes on basic banking techniques, preparing for first-time home ownership, budgeting as well as how to research investment options.

The state's second largest bank is also increasing its efforts to attract Hispanic customers. Last month, Charlotte, N.C.-based Bank of America announced it would partner with a Houston-based Hispanic marketing agency to develop a $40 million per year advertising campaign to attract Hispanic residents in areas such as Nevada, said Gillian Breidenbach, spokeswoman for Bank of America.

Along with an expanded ad campaign, B of A has also introduced a service that will allow its customers to wire funds to Mexico by telephone or computer.

Wells Fargo also hopes to grab its share of the money transfer market, and Kovacevich said Mexicans in the United States wired an estimated $10 billion to family members in Mexico last year.

"I'm not talking about pocket change," Kovacevich said.

In local neighborhoods with a large Hispanic population, U.S. Bank also offers classes in Spanish covering topics such as basic banking and programs promoting Hispanic employment.

That program has led to increased business from Hispanics, who make up as much as 75 percent of the clientele at one U.S. Bank branch in North Las Vegas, a bank spokeswoman said.

Representatives from several Las Vegas-area community banks said they are also looking to increase their ability to serve Hispanic customers, most notably through their ongoing recruitment and retention of bilingual employees. Others work with Hispanic professional organizations such as the Latin Chamber of Commerce, while some routinely advertise in local Spanish publications.

archive