Latino Financial Services Market to Grow by $85 Billion

January 31, 2024

Last month, McKinsey published a report entitled The Economic State of Latinos in America: Advancing Financial Growth, which examines the significant size and sharp projected growth of the market for financial services among Latinos in the U.S. The study’s findings come on the heels of a report published in 2023 by the Latino Donor Collaborative finding that the 62 million Latinos in the United States, whose economic output has grown to $3.2 trillion, would constitute the world’s fifth largest economy if they were their own nation.  

In its study, McKinsey emphasized both the sizable growth that they project in the Latino market for financial services, as well as the fact that the market appears to be significantly underserved, providing both a challenge and an opportunity for financial institutions to innovate ways to better serve this market.  

Some of the highlighted findings include:  

  • “[R]evenue from Latino customers in banking, insurance, and wealth management will increase by more than 50 percent, from about $155 billion in 2022 to about $240 billion in 2030.”
  • “McKinsey research finds that compared to the general population, Latino savers are more loyal to institutions they already work with when they want to find new solutions such as investment services.”
  • “Latino business owners’ spending on banking and insurance will grow from $17 billion in 2022 to $25 billion in 2030.”

The study also flags that 55% of Latino customers included in McKinsey’s research “described themselves as dissatisfied with the financial services sector” due “hurdles [that] include a lack of Spanish-language services.” Notably, prior studies suggest that the positive impact of offering financial services in Spanish goes beyond reaching LEP customers specifically. For example, in 2023, the MRI-Simmons’ National Consumer Study found that, other than branch location, the availability of Spanish services was the single most important factors that Latino customers in general considered when choosing a bank.  

Vectari’s Transforma platform is designed with this specific need in mind. Transforma provides bank-grade, regulator-ready Spanish translation and transformation tools that allow financial institutions to increase the availability and quality of Spanish-language offerings. To learn more about Transforma, visit us here, or reach out at hello@vectari.ai.

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