8/14/2019 The Rite Loan

1/23

S+AAs

The Rite LoanA loan created

with the next generation in mind.

8/14/2019 The Rite Loan

2/23

2

Are credit unions neglecting animportant target market?

Can credit unions afford to keepignoring the booming teen market and

the trends?

8/14/2019 The Rite Loan

3/23

3

Quinceaera

A rite of passage for fifteen-year-old Latina girls.

It is a community and family celebration full of traditionand meaning when a young girl is symbolically escortedinto womanhood by her family and the event iswitnessed by her community.

8/14/2019 The Rite Loan

4/23

8/14/2019 The Rite Loan

5/23

5

Debutant Ball/Debut:

The event traditionally referred to as The Debutantes

Ball, is for a young lady from an aristocratic or upperclass family who has reached the age of maturity, and

as a new adult, is introduced to society at a formal

presentation known as her debut or coming out.

8/14/2019 The Rite Loan

6/23

6

8/14/2019 The Rite Loan

7/23

7

Lauren Macaregs Debut

8/14/2019 The Rite Loan

8/23

8

8/14/2019 The Rite Loan

9/23

9

Invitations

Gown

Location FoodCake Band/DJ

Pictures

Decorations/Flowers

8/14/2019 The Rite Loan

10/23

10

Source: Money Magazine, September 1, 2006 Issue

8/14/2019 The Rite Loan

11/23

11

$35,885.02

8/14/2019 The Rite Loan

12/23

12

What can credit unions do forthese families who are aboutto spend thousands of dollars

they dont have?

How can credit unions get a

piece of the pie?

8/14/2019 The Rite Loan

13/23

13

Quinceaera Loan

Given loan amount of $20,000

An interest rate of 1.500%A term of 5 years

Monthly payments will be $346.20

Interest = $771.87

8/14/2019 The Rite Loan

14/23

14

Debutant Loan

Given loan amount of $22,000

An interest rate of 1.800%A term of 5 years

Monthly payments will be $383.69

Interest = $1,021.33

8/14/2019 The Rite Loan

15/23

15

WHY?

More than 400,000 American Latinasturning 15 each year*

With average costs constantly rising, theimpact that CUs could have on thefinancial, in addition to the culturalimportance, should not be underestimated

*Once Upon a Quinceaera: Coming of Age in the USA, by Julia Alvarez

8/14/2019 The Rite Loan

16/23

16

WHY?

With price tags of $10,000 to $80,000these coming of age parties now rivalweddings in costs and, in some respects,

outpace them.*

A majority of these parties are funded byhigh-interest credit cards - CUs can givethem a better alternative

*New York Times, May, 2006

8/14/2019 The Rite Loan

17/23

17

WHY?

Loyalty to credit unions at a young age

Loyalty from family members

Free word of mouth marketing Be the first credit union to focus on this

group and this need

8/14/2019 The Rite Loan

18/23

18

The Quintero Family

Why?

8/14/2019 The Rite Loan

19/23

19

How?

Offer like every other personal loan, butemphasize the purpose and incredible rate

Use your member data to target parents,

grandparents and students

Regularly advertise online, with email blasts,and both youth and regular newsletters

8/14/2019 The Rite Loan

20/23

20

What else?

Automatically open a free savings accountfor celebrant and make a deposit

Give existing teen member a deposit

Verifies age and use of loan

8/14/2019 The Rite Loan

21/23

21

What else?

Offer a chance at free services (contests,quarterly promotions, etc)

Work with reputable vendors and refermembers for packages with discounts

Use teen members for testimonials

8/14/2019 The Rite Loan

22/23

22

Last thoughts

Families all want to mark certainmilestones in a way that lets children know

theyre proud of accomplishments

but

These coming of age celebrations have

grown-up price tags.

8/14/2019 The Rite Loan

23/23

23

Thank you.