Acculturation, microculture and banking: an analysis of Hispanic consumers in the USA.

Purpose - The purpose of this paper is to show that having a bank account is an important precursor to participating in the US financial mainstream. However, about 24 percent of Hispanic households in the USA are unbanked. This study seeks to examine whether the use of banks among Hispanic consumers can be explained by acculturation and microcultural factors. Design/methodology/approach - The model proposes that having a checking or savings account is a function of acculturation, microculture, and demographics. Acculturation is measured in terms of length of time in the USA; plans to remain in the USA temporarily versus permanently; Spanish language use; and citizenship status. Microculture is measured by country of origin. Data used for this analysis were collected in a survey sponsored by a start-up financial institution interested in targeting the Hispanic market. These data were collected in 2004 during telephone interviews with 1,000 Hispanic renters in major markets across the USA. Findings - More acculturated Hispanic consumers are more likely to have a bank account, regardless of income, and level of education. In addition, the propensity to have a bank account varies by country of origin. Practical implications - Marketers and policymakers should target less acculturated immigrants who view themselves as temporary US residents, and those who use Spanish primarily for communicating outside the home. Marketers should emphasize the safety and soundness of the US banking system and should accommodate needs for international funds transfers. Originality/value - The findings can help financial service providers and public policy makers to target a growing market segment. [ABSTRACT FROM AUTHOR]