Mariachi music to the ears: the Hispanic market is emitting sweet sounds these days. Hispanic numbers are growing rapidly. So is their buying power. But be careful. To win their hearts, you have to romance them a little differently.

• Author: Bernstal, Janet Bigham
• Position: Hispanics - Cover Story

Most of us have seen the numbers. Latino households are one of the fastest-growing demographic segments in the United States, projected to increase from 9.3 million to 11.9 million by the year 2010, according to the latest U.S. Census statistics. Impressive enough, especially when you add the projections on purchasing power. Celent Research reports that buying power of Latinos is expected to expand from the current $581 billion to over $900 billion by 2007.

That's an enormous amount of money in the hands of a market largely underserved by U.S. financial services institutions.

"The biggest opportunity banks have is in the Hispanic community," says Jorge Reynardus, president and founder of Reynardus & Maya Advertising, New York. "They are going to be an incredible number in the population in five to 10 years, and if you're not targeting them, you're missing out."

Given their reputation for loyalty, the Hispanic community could also prove to be a bank marketer's dream.

"They tend to view financial services institutions ha the same way a Catholic sees a priest, very respectful," claims Reynardus, the former head of marketing for Puerto Rico-based Banco de Ponce "Once they choose a bank, they're unlikely to change channels, so you can develop a very loyal franchise with Hispanic clients."

A bank that reaches out and addresses the Hispanic community's needs could tap into a significant source of fee income. For example, the U.S. Census reports that Mexican-Americans send $16 billion annually to Mexico. Those wire transfers are currently going through entities like Western Union.

"We're also seeing a lot of prepaid cards and I think we'll see more," says Reynardus, "It's something that a Mexican, Cuban or Columbian can send back home to make sure family has a secure way of availing themselves of funds."

A client of Reynardus and Mayo, Mexico City-based Prestaciones Universales, is the second largest provider of these cards in Mexico. They have a product named "Si Vale," or" "It's Worth It," that he feels will soon migrate to the United States and allow Mexican-Americans to wire money directly to the card in Mexico.

He also claims that Hispanics are drastically underserved when it comes to mortgages and credit cards. He cites two reasons for this situation: "lack of identification documents and lack of understanding by credit managers.

Many banks are cautious about the documentations required to open an account, especially after the events of 9/11...