what matters now - cuna€¦ · what matters now™in review 2015 insights from middle america •...
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Insights from Multicultural Consumers
Kristin Simonis
Edgar Hernandez
What Matters Now™
CUNA Mutual Group Proprietary | Reproduction, Adaptation or Distribution Prohibited | © 2016 CUNA Mutual Group, All Rights Reserved.
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What Matters Now™ In Review
2015 Insights fromMiddle America
• Kids and family arethe ultimatemeasures of success
• Financial stability concerns of the recession lingered
2016 Insightsfrom Millennials
• Millennial parents present a prime opportunity forfinancial events
• #1 reason Millennials don’t use credit unions–they don’t know much about them
2017 Insights from the Non-Member
• 1 in 4 credit union members are disengaged
• Non-members aremore racially diverse than members
More consumers protected.
Consumers protected more.
The most compelling and successful
way for hardworking families to build
financial security.
VISION
MISSION
Agenda
• What Does the Data Show
• Why are There Differences
• How Can We Use These Insights
A Changing Population
1TruStage member data with Acxiom overlay data on race and ethnicity, 2017
Over the last five years
Multicultural consumers accounted for100% of U.S. population growth
61% of credit union member growth.1
American Diversity by Generation
10Source: Nielsen Pop-Facts, CY 2016 aggregate of single year by race
ethnicity (ASRE) with collapse Race/Ethnicity into “core” diversity cohorts.
50.8%
16.9%
49.2%
83.1%
AGE <9
AGE 10-19
AGE 20-29
AGE 30-39
AGE 40-44
AGE 45-50
AGE 50-60
AGE 60-69
AGE 70-79
AGE 80+
Multicultural (all other) White
SILENT
BOOMER
GEN-X
MILLENNIAL
GEN-Z
43%
23%
29%
48%
52%
50%
10%
25%
21%
HISPANIC
WHITE
ALL ADULTS
Lower Middle UpperINCOME TIERS BY RACE
43%
43%
23%
29%
45%
48%
52%
50%
12%
10%
25%
21%
AFRICAN
HISPANIC
WHITE
ALL ADULTS
Lower Middle UpperINCOME TIERS BY RACE
25%
43%
43%
23%
29%
47%
45%
48%
52%
50%
28%
12%
10%
25%
21%
ASIAN
AFRICAN
HISPANIC
WHITE
ALL ADULTS
Lower Middle UpperINCOME TIERS BY RACE
29% 50% 21%ALL ADULTS
Lower Middle UpperINCOME TIERS BY RACE
23%
29%
52%
50%
25%
21%
WHITE
ALL ADULTS
Lower Middle UpperINCOME TIERS BY RACE
Do multicultural consumers align witha middle income market focus?
11Source: Pew Research Center 2015 analysis of the Current Population Survey, Annual Social and Economic Supplements
AFRICAN
AMERICAN
Multicultural Business Implications
Is there really a difference in whatmulticultural consumers want and how
they use financial services?
Internal TruStage data, 2017
One Racial/Ethnic Group is
2 TIMESmore likely to respond
to certain direct mail offers
Direct Mail Response Rates
Applying what we found to CREDIT UNION business
2017 Research: Understanding Consumers
Attitudes and Values Survey
Multicultural Online Diary1
• 12,000 participants
• Understanding of financial services
behaviors, financial literacy and
confidence, needs, worries and
goals of both consumer and credit
union membership.
• 3,500 participants(a subset of the 12,000 survey)
• Insights into the values, opinions,
and beliefs that bind different
groups of people together and
drive them apart
• 38 participants
• Insights from African
American/Black, Asian and
Hispanic consumers
• Online journaling, photo and
video diary activities about their
hopes, dreams, aspirations and
financial realities.
Financial Services Market Survey 2 3
• What Does the Data Show
• Why are There Differences
• How Can We Use These Insights
African Americans are mostlikely to have a loan
18
Q: Please indicate whether or not you have any of these loans: student, home,auto, HELOC, personal, small business, short term or credit card loans
CUNA Mutual Group Attitudes and Values Survey, 2017
72%
76%
68%
66%
61%
White
African American
Hispanic
Asian
Other
African Americans are 2x more likelyto take out a student loan than Whites
18%
42%
24%
19%
23%
White
African American
Hispanic
Asian
Other
Student Loans
CUNA Mutual Group Attitudes and Values Survey, 2017
African Americans and Hispanics are almost 2x more likely to purchase payment protection compared to Whites and Asians
20
Q: Please indicate whether or not you currently own payment protection for any of the following types of loans: student, home, auto, HELOC,
personal, small biz, short term or credit card loans
CUNA Mutual Group Attitudes and Values Survey, 2017
17%
32%
27%
12%
15%
White
African American
Hispanic
Asian
Other
InvestmentProduct Ownership
69%
52% 49%
69%64%
White African American Hispanic Asian Other
CUNA Mutual Group Attitudes and Values Survey, 2017
Collage Group, Diary Research Study, December 2017
“I have money in my accounts,so I can possibly start my own business or use it for my future marriage/wedding . . . I want to be able to help my parents when they retire.”
-Hua F., Asian
Expand your thinking around consumers’
motivations for investing
Differences in WHATmulticultural consumersbuy and HOW they buy
African Americansand Hispanics are
more likelyto research using mobile apps.
24%
39% 40%
21%
36%
White African American Hispanic Asian Other
CUNA Mutual Group Attitudes and Values Survey, 2017
Collage Group, Diary Research Study, December 2017
“This is a screenshot of someof my mobile finance apps.I have them set to remind me whenever I spend a certain amount of money. It also sends me an alert when my bank accounts get to a certain balance to be cautious withmy spending.”
-Eduardo O., Hispanic
• What Does the Data Show
• Why are There Differences
• How Can We Use These Insights
ThemesMulticultural
consumers rank considerably higher
than Whites inthese six areas
• Optimism
• Hustle
• Living in the Moment
• Worry
• Generosity
• Community vs. Individual
Shared mindset on OPTIMISM
292017 US Monitor Kantar Consulting
58%
73%
68%
55%
Asian
Hispanic
African American
White
Q: Being optimistic is an important part of my personal identity.
OptimismWhat does the data say?
30
19%
16%
21%
7%
Asian
Hispanic
African American
White
Q: I believe I will become rich in my lifetime.
CUNA Mutual Group Attitudes and Values Survey, 2017; Collage Group, Diary Research Study, December 2017
Hustle
33
Q: These days a salary isn’t enough; you haveto hustle to make money in different ways.
9%
13%
12%
5%
Asian
Hispanic
African American
White
CUNA Mutual Group Attitudes and Values Survey, 2017
Shared Mindset on Striving, Achieving
34
59%
71%
70%
51%
ASIAN
HISPANIC
AFRICAN AMERICAN
WHITE
Q: Always striving for excellence is an important part of my personal identity.
2017 US Monitor Kantar Consulting
CUNA Mutual Group Attitudes and Values Survey, 2017
Hispanic consumers are
9X as likely as Whites to acquire a small business
loan in the next five years!
“I worry about my family’s financial stability
on a daily basis”
Percentage that worry about financial stability
TruStage What Matters Now™ Consumer Survey, January 2018
0
10
20
30
40
50
60
70
2015 2016 2017 2018
Having enough $ for retirement
Paying student loans
Paying rent/mortgage
Paying bills
$ to take care of children
$ to take care of parent/loved one
Saving enough for child's college
Rising cost of healthcareinsurance
WorryHow Worried Are You About ...
White African American Hispanic Asian
CUNA Mutual Group Attitudes and Values Survey, 2017
0%
10%
20%
30%
40%
CUNA Mutual Group Attitudes and Values Survey, 2017
42% of Hispanics,compared to 23% of Whites, say they
strive to live in the moment
LIVING IN THE MOMENT as a reward
43
“The purchase for me meant that I
was able to provide my son with
reliable transportation and also a
great satisfaction to myself that I
was able to do this for him.”
-Robert R., Hispanic
Generosity
46
33%
40%
41%
28%
ASIAN
HISPANIC
AFRICAN AMERICAN
WHITE
Q: I'm likely to provide financial help to close friends or family who are in need.
CUNA Mutual Group Attitudes and Values Survey, 2017; Collage Group, Diary Research Study, December 2017
Significant differences in feelings around getting a loan compared to Whites
Getting a loan makes mefeel idealistic in being able
to help others
Asians 2XAfrican Americans 3X
Hispanics 3X
CUNA Mutual Group Attitudes and Values Survey, 2017
Community vs. Individualism
50
Q: We can learn and achieve more if we work together.
CUNA Mutual Group Attitudes and Values Survey, 2017; Collage Group, Diary Research Study, December 2017
58%
70%
78%
62%
ASIAN
HISPANIC
AFRICAN AMERICAN
WHITE
64%
78% 77%
57%
AfricanAmerican
Hispanic Asian White
Q: I always think about how my actions affect the
environment.
Q: I should be doing more to help my local
community.
78%83% 82%
68%
AfricanAmerican
Hispanic Asian White
Shared Mindset on Community
63%
72%
62%
52%
AfricanAmerican
Hispanic Asian White
Q: Volunteering time to charities is an important part
of my personal life today.
2017 US Monitor Kantar Consulting
ThemesMulticultural
consumers rank considerably higher
than Whites inthese six areas
• Optimism
• Hustle
• Living in the Moment
• Worry
• Generosity
• Community vs. Individual
• What Does the Data Show
• Why are There Differences
• How Can We Use These Insights
Usingmulticultural insights,
we can align our business practices and get closer to
what ALL consumers
want.
• Designing Our Productsand Experience
• Living Our Brand Through the Communities We Serve
Designing Our Products
and Experience
Flexible Payment Schedules
57
21%
32%
32%
20%
ASIAN
HISPANIC
AFRICAN AMERICAN
WHITE
Q: Important loan characteristics:Flexible payment schedules
CUNA Mutual Group Attitudes and Values Survey, 2017
Convenienceand flexibility
are more than 2xas important to Hispanic consumers
CUNA Mutual Group Attitudes and Values Survey, 2017
Q: I look for convenience in my financial products and services, even if it means higher rates or fees.
9%
16%
23%
10% 9%
White African American Hispanic Asian Other
Speed of Lending
59
14%
21%
22%
12%
ASIAN
HISPANIC
AFRICAN AMERICAN
WHITE
Q: Important loan characteristics:Speed of lending me the money I need
CUNA Mutual Group Attitudes and Values Survey, 2017
“One friend told me about a company that you apply for a loan and they tell you instantly whether they can help you or not … so because of the urgency I went … I paid a lot because the interest was a little high … but I really needed to pay my rent … even though the interest was very high it was worthwhile.”
–Delia C., Hispanic
Collage Group, Diary Research Study, December 2017
Living Our Brand Through the Communities
We Serve
“The composition of your workforce speaks to your company’s identity. It tells your
customers, employees, and other stakeholders that your organization cares
about diversity and about having an environment that is accessible to all.”
-DAVID POWERCEO, Perkins School for the Blind and
author of “The Curve Ahead”
Community Mindedness Matters
63
61%
55%
42%
53%
HISPANIC
AFRICAN AMERICAN
WHITE
ASIAN
Q: It’s important that companies make an effort to be active in my local community
2017 US Monitor Kantar Consulting
Connection Through Community“I try to do more by helping people but I don’t have enough money. Sometimes people need money to buy their food, I wish I could have
more money so I could help them.”
-He Z., Asian
Collage Group, Diary Research Study, December 2017
Q: I would prefer to keep all my financial productsand services with a single institution.
28%
36%
41%
23%
37%
White African American Hispanic Asian Other
CUNA Mutual Group Attitudes and Values Survey, 2017.
Partnering With Multicultural Consumers Requires:
Being trusted
Treating consumers with respect
Being there for help in emergencies
Providing support in advancing through life stages
CUNA Mutual Group Attitudes and Values Survey, 2017; Collage Group, Diary Research Study, December 2017
68
92%
Insights from Multicultural Consumers
What Matters Now™
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