Reaching Unbanked Latinos

In celebration of Plaza Bank President & CEO Carlos Guangorena's birthday today, I'd like to write a little about banking and Latinos. In general, immigrants to the U.S. are much less likely to be banked than American-born. In addition, certain minorities are especially unlikely to have a relationship with a banking institition.

The problem with not having that banking relationship is that then it's difficult to establish credit. And we know that, without credit, many things--like home ownership--are simply unattainable. Now sometimes we hear that employers even check credit reports of their candidates to ensure that they're "responsible." Well, not having any credit at all doesn't make a person "irresponsible," it just means they're living outside the societal norm in the United States. And if they come from a place where banks closed and they lost all their savings, you can understand their hesitation. But now, you see, they have limited opportunities.

According to a first-ever federal survey on the topic, minority groups showed to be much less likely than the overall population to have standard banking relationships. In fact, an article in yesterday's L.A. Times reports on the survey: "Nearly 22% of black households were unbanked, as well as 19.3% of Latino households and 15.6% of Native American households. Just 3.5% of Asians and 3.3% of whites did not use banking services." That's an astounding gap.

Excerpt from the article:

"Many Latinos are most comfortable operating in cash," said James Gutierrez,
chief executive of Progreso Financiero in Mountain View, Calif., which focuses
on giving small, short-term loans to Latinos. Instead of having a paycheck put
on hold for several days at a bank, many turn to expensive payday loans for
immediate liquidity. "There's a lot of distrust of banks," Gutierrez said. "But
even though it's convenient for them to operate outside the financial
mainstream, they can't build a credit history, get a small-business loan, build
wealth. You need to give people a staircase upwards."

Here in the Puget Sound region, Plaza Bank was formed, about four years ago, on this very principle. The founders and directors wanted to create an institution that would be accessible, and since many of them were Latino, they created the Pacific Northwest's first Latino bank--with bilingual/bicultural staff, services and materials. They of course welcome everyone to bank there, with business lending and administrative office is right here in downtown Seattle, and a gorgeous retail branch at the Kent Station Shopping Center in Kent. The Bank has been offering not only your typical bank products for consumers and businesses, but also opportunities for financial literacy. This is what sets Plaza Bank apart from the bigger banks. It's a community bank that is truly reaching out.

For the same reason, the organization Bank On Seattle was created a couple of years back. The mission of Bank on Seattle was to make banking accessible to the unbanked--and keep this population from losing all its money through payday loan services. They formed a cooperative of many credit unions and banks, including Plaza Bank. If anyone can provide information describing the organization's current efforts or achievements, that would be great to learn.

As a side note, in our own survey of Puget Sound Latinos two years ago, we learned that 56% of local Latinos are banked (meaning they have a savings account, checking account or both), which makes the Seattle area market very different from the national average.

Sources: Hispanic Consumers in the Puget Sound Region study available FREE at www.conexion-marketing.com; http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Eeveryoneiswelcome%2Eorg%2F&urlhash=JqF9 ; http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Elatimes%2Ecom%2Fbusiness%2Fla-fi-fdic-unbanked3-2009dec03%2C0%2C487549%2Estory&urlhash=Al9R

Happy Mexican Independence Day!

It's September 16: Today's the day Mexico celebrates its independence!

And we've talked a lot about the fast-growing Mexican and general Latino populations, but did you know that Latinos have lived in Washington state since the 1770's?

The below history comes to us from the Washington State Commission on Hispanic Affairs, via El Mundo newspaper.

In Washington State, the familiar names of the Strait of Juan de Fuca, the San Juan Islands, and Rosario Strait are a legacy of Spanish influence in the state. But what is missing is the Latino (Latin American v. Spanish) imprint. The Spanish influence is a Latino legacy, more importantly a Mexican legacy that began in the 1770s.

Two Mexicans in particular contributed greatly to early knowledge of Washington state. José Mariano Moziño participated in the 1792 expedition, known as the Malaspian Expedition. He produced an ecological catalog of 200 species of plants, animals, and birds. He documented his research in Noticias de Nuka: An Account of Nootka Sound in 1792. Also a member of the Malaspian Expedition, Anastasio Echeverría was considered the best artist in Mexico at the time. Echeverría sketched one of the first detailed landscape profiles of the area.

From Mexican mule packers in the 1770’s to the farmers of today, the Latino influence in Washington state is not a new phenomenon, but a tangible aspect of the society. Yakima Valley, Pasco, Burien, or Mt. Vernon will notice an undeniable Latino influence. In the Yakima Valley alone, from Wapato to Prosser, Latinos make up the majority of the population. Yakima County as a whole has a population of 231,586, of which 38.6%, or more than 89,000 persons, are of Hispanic or Latino origin.


So...when you hear talk about how we "suddenly" have so many Hispanics in our state, you may want to explain that the migration to Washington actually started in the late 1700's. And when you hear another myth, that Hispanic immigration is the cause of the population explosion, you can explain that population growth is due more to U.S. births than to immigration--even before the recession.

Que tengas un bonito día.

How the García Girls Got Their Surname

I just read an article about a CNN documentary on Latinos in the U.S. (click here for article), slated for broadcast in October.

The most interesting part of it, however, was the quote that García is the eighth most common surname in our country.

Amazing!

This reminds me about the facts that, a couple of years ago, salsa surpassed ketchup in U.S. sales, and tortillas surpassed bread.

Here are some statistics to chew on:

• By 2025, 30% of our national population will be Hispanic.
• Today, this cultural group represents $1 Trillion in buying power
• By 2013 it's expected to have $1.4 Trillion in buying power
• Between 1990-2008, Latinos experienced 494% growth in buying power, while growth in the non-Hispanic market was only 141%.

This cultural population is going to increasingly be the key to success for companies in many if not most categories.

Immigrants Integral to Washington State Economy

Seattle-based OneAmerica just released a report according to the Puget Sound Business Journal showing how our immigrant community is becoming a larger component of the state's workforce based on continuing immigration and aging of the native-born population.

In fact, OneAmerica found that immigrant workers now represent 14.3 percent of Washington’s civilian work force, and added that immigrants contribute heavily to tax revenue and consumer spending in this state.

Read more.

Indigenous Does Not Equal Latino

Funny, I was just reading an article in yesterday's Los Tiempos newspaper from Cochabamba, Bolivia, on the issue of indigenous immigrants in Skagit County and through the U.S. Today, that story's featured in our own Seattle Times.

Like others from Mexico and Central America, the indigenous have come to the U.S. looking for a better life. Many end up as farmworkers, right here in our own Skagit County.

Thing is, they're being told that they're "Latinos" and "Mexicans," - even those from Guatemala! Members of these indigenous are of an entirely different culture. Many don't even speak Spanish (instead, they speak their indigenous dialect) and don't come from a Latino culture. The U.S. Census groups them as Native Americans and Alaskan Natives.

For the story, click here.

We Heart Edgar

So...in case you didn't hear about the launch yesterday, famed former Mariner hitter Edgar Martinez and his wife Holli have set up a scholarship fund for Latino undergrad students and also for minorities pursuing teacher-training programs. He and his wife know how many students a teacher can affect, and how having teachers that look like us can really inspire us.

But you know what? While Washington State schools had 24% minority students in the 2007-2008 school year, only 7% of the teachers were minorities. AND - in 2005-2006, only 16 percent of teaching certificates were issued to minorities.

Now we know there's a problem with graduation levels in our nation and state--especially among minorities. And according to our own study of Puget Sound Latinos, we found that only 16% have attended or are graduating from college. Let's work on giving these students something to aspire to!

So Edgar and Holli have set up The Martinez Foundation and donated $200K of their own funds to guarantee a minimum of ten $20,000 scholarships to Latino undergrads! They'd like you to help them with this amazing cause. The Martinez Foundation fundraising event will take place October 18 at the Fairmont Olympic Hotel. See more at http://www.themartinezfoundation.org/

¡Gracias, Edgar y Holli!

Día de la Familia at Pacific Science Center - THIS SATURDAY

Did you know that our own Pacific Science Center sets aside a special day for the local Latino community? They're working on their second annual Día de la Familia, to take place this coming Saturday. It's a really cool deal, where even the 3D movie, Wild Ocean, will be en español. Look for a laser show featuring música latina, live mariachis, and more! For times and other details, see their website: http://www.pacsci.org/diadelafamilia/.

Discount coupons ($25 for a family of four) are available at the Plaza Bank Kent Station branch and were also inserted in the current La Raza del Noroeste newspapers.

Could event be a fun event for young students of Spanish! If you go, please offer your comments on the event, attendance, etc + photos if you've got 'em right here on my blog!

CALL FOR LATINO MENTORS

OK so I just discovered a really cool program within the Seattle School District. Maybe you can help me spread the word?

Guillermo Carvajal is launching the Latino Achievers Club, whose motto is Preparing Latino Boys for the Future. It's a school-based Latino project designed to give boys enhanced social and academic development, and will take place at three elementary schools in south seattle that show a high number of Latino students.

Guillermo is creating seminars and workshops designed to:

1. Enhance Imagination and create independent learners
2. Inspire a passion for science and math
3. Encourage Career Exploration
4. Teach Team Building
   

To get this off the ground, he needs leads for the following:

• Facilitators for Public Speaking
• Skilled trainers on time management who want to try a hand at working with Latino boys
• Money Management and kids
• Diet
• Dress for Success
• The Power of Words
• Latino Identity: Re-affirmation of Cultural Identity
• Latino mentors (male)
• Latino motivational speakers
• Self-Discipline
• Also looking for trainers / facilitators that would do creative projects such as
  Model Rocket Building
• Robotics
• Other creative (with a math and science base) ideas.

If you or someone you know speaks Spanish and would like to lend your talents to this terrific cause, please contact Lead Coordinator Guillermo Carvajal at 206-252-0993 or gcarvajal@seattleschools.org.

Fiestas Patrias in our own backyard

In case you didn't know, we just had a weekend jam-packed with Hispanic fiestas. Fiestas Patrias is that time of year when Latinos celebrate the independence their homeland gained, and most Latin American countries' independence were won in the late summer months. Mexico won theirs September 16, which launches Hispanic Heritage Month (clearly only celebrated here in the U.S. of A.) which isn't a month per se, but a month-long period from September 15 - October 15.

So right here in the Seattle area we're all over Fiestas Patrias, with celebrations all weekend long at the Seattle Center, a community parade in South Park, an entire day of Puyallup Fair dedicated to Latinos, and even a Bellevue celebration at Crossroads Mall.

We watched the Saturday parade in South Park, and were amazed to see the turnout--especially among parade participants: The Latino Riders (a motorcyclin' group), Cascade Middle School Marching Band, some lowriders with the most unbelievable hydraulics, beautiful, dancing horses with their riders in traditional Mexican dress, lots and lots of participation from the various SeaMar groups in Washington state (SeaMar puts on the Fiestas Patrias parade), and even more cheap candy thrown to the bystanders that I kept picking up. See some of the photos I took to get the flavor.

At the end of the parade, there was food and aguas frescas for sale, to benefit SeaMar. The horchata rocked! Jorge Madrazo of SeaMar took the stage and we also heard from Seattle Mayor Greg Nickels, Congressman Jim McDermott, Senator Margarita Prentice, Rep. Bob Hasegawa, and others. Then those beautiful horses showed off more of their fancy footwork!

On Sunday, I stopped by the Fiestas Patrias celebration at the Seattle Center. There were several sponsor booths (including three banks vying for business from local Latinos!) and a good selection of south-of-the-border foods. The sun was out and people were enjoying some great live music in the Fisher Pavilion, everything from mariachi to bacchata. It was a decent turnout.

The interesting thing about this celebration is that it served as an announcement to Seattle by the old Radio Sol--the new El Rey--of some changes made just a week or so ago. OK, so the name changed. The music's not supposed to. The DJs we knew and loved are off the air. A new live and local DJ just moved up from Bakersfield, CA to take the 10-3 weekday spot, and she's starting the week of 9/22. So this new DJ, Marimar Flores, was up on stage between sets, getting the crowd excited about stuff with interactive contests that got people out of their seats. She recognizes that she's not there to "replace" longtime DJ Jaime Mendez, but in any case people seemed to respond to her pretty well. We'll see how her show goes, and what happens to listenership at the station, which was finally on par with La GranD the last several months.

If anyone attended the Puyallup Fair celebration on Sunday or the Bellevue Crossroads event, or other related events, feel free to add your feedback. Thanks for your participation!