CREATING BANKING OPPORTUNITIES FOR RURAL COMMUNITIES:
ELEMENTS OF SUCCESS
Eloy Villafranca Community Affairs Officer
KEY ELEMENTS FOR SUCCESS
UNDERSTANDING RURAL MARKETS DEVELOPING INTERNAL CAPACITY TO SERVE CREATING WORKING COALITIONS/PARTNERSHIPS CUSTOMIZING PRODUCTS/SERVICES TO THE
MARKET
UNDERSTANDING THE DEMOGRAPHICS
• GEOGRAPHICAL AREA
• ETHNICITY/CULTURE • AGE • INCOME • CONCENTRATION • ACCESS TO FINANCIAL PRODUCTS/SERVICES
Example--America’s Foreign Born
Asian and Latin Americans Dominate Foreign-Born
Mexico -7.2 million 27%
Other Latin America -6.2 million 23%
Asia -7.2 million 27%
Africa & Other -0.9 million 4% Europe &Canada -4.9 million 19%
Source: Urban Institute
ISSUES TO CONSIDER
TRUST—WHERE ARE THE CONTACT POINTS?
Community-based Organizations Faith-Based Education-based Employment-based Family-based Entertainment-based
CULTURE—DIFFERENCES IN CUSTOMS/BELIEFS
Language Perceptions (Above)
ISSUES TO CONSIDER
FINANCIAL LITERACY
Level Availability/Sources Costs Benefits/WIIFM
CUSTOM PRODUCTS/SERVICES
Income Unique needs (Agriculture, Ranching) Cultural Beliefs
AN INCLUSIVE ENVIRONMENT
Cannot be done alone Partners Other Govt agencies CBOs Churches Professional/Technical assistance
Private Businesses Advisory Boards
Community Individuals
REACHING THE COMMUNITY - ACTIVITIES
Establish a presence in the community
Meet potential customers in non-threatening informal gatherings
Reach out through different media
Sensitivity to language and culture Networking through already established institutions - community groups, churches
REACHING THE COMMUNITY - ACTIVITIES
Train/hire employees interested in adapting a model practice to their institution and community
Get local feedback on new offerings from local advisory group(s) Develop staff
Training
Internships
SUCCESSFUL COALITIONS
BANKS
INDIVIDUAL
EMPLOYERS
FAITH/RELIGION
SCHOOLS
COMMUNITY ORGANIZATIONS
WHAT MAKES COALITIONS WORK
THE RIGHT PARTNERS COMMUNICATION STRUCTURE/LEADERSHIP UNDERSTANDING EVERYONE’S GOALS
LEARNING ABOUT EACH OTHER
MEASUREMENTS
AWARDS
WHAT MAKES COALITIONS FAIL
THE WRONG PARTNERS INEFFICIENT-INEFFECTIVE COMMUNICATION NO STRUCTURE, WEAK LEADERSHIP FOCUSING ON YOUR OWN GOALS
NOT LEARNING ABOUT EACH OTHER
NO OR INEFFECTIVE MEASUREMENTS
NO CELEBRATIONS
KEYS TO SUCCESS
Having a “champion” financial institution Commitment of bank’s senior management team Preparation of the bank’s staff Developing alternative products/services Commitment of community’s leadership Employer subsidies for conducting classes in workplace Seminars that cover financial education in simple terms with culturally-informed, (bi/tri)lingual instructors
THANK YOU!
QUESTIONS?