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™

JOIN US AUG 16 / 2018

REGISTER TODAY at cunamutual.com/discovery

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.

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

MILLENNIAL

HISPANIC

ALL ADULTS

Lower Middle UpperINCOME TIERS BY RACE

AFRICAN

HISPANIC

ALL ADULTS

AFRICAN

HISPANIC

ALL ADULTS

29% 50% 21%ALL ADULTS

ALL ADULTS

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

African Americans are mostlikely to have a loan

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

African American

Hispanic

African Americans are 2x more likelyto take out a student loan than Whites

African American

Hispanic

Student Loans

African Americans and Hispanics are almost 2x more likely to purchase payment protection compared to Whites and Asians

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

African American

Hispanic

InvestmentProduct Ownership

52% 49%

69%64%

White African American Hispanic Asian Other

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.

39% 40%

“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

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

Hispanic

African American

Q: Being optimistic is an important part of my personal identity.

OptimismWhat does the data say?

Hispanic

African American

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

Q: These days a salary isn’t enough; you haveto hustle to make money in different ways.

Hispanic

African American

Shared Mindset on Striving, Achieving

HISPANIC

AFRICAN AMERICAN

Q: Always striving for excellence is an important part of my personal identity.

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

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

42% of Hispanics,compared to 23% of Whites, say they

strive to live in the moment

LIVING IN THE MOMENT as a reward

“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

HISPANIC

AFRICAN AMERICAN

Q: I'm likely to provide financial help to close friends or family who are in need.

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

Community vs. Individualism

Q: We can learn and achieve more if we work together.

HISPANIC

AFRICAN AMERICAN

78% 77%

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%

AfricanAmerican

Shared Mindset on Community

AfricanAmerican

Q: Volunteering time to charities is an important part

of my personal life today.

ThemesMulticultural

consumers rank considerably higher

than Whites inthese six areas

• Optimism

• Hustle

• Living in the Moment

• Worry

• Generosity

• Community vs. Individual

Usingmulticultural insights,

we can align our business practices and get closer to

what ALL consumers

• Designing Our Productsand Experience

• Living Our Brand Through the Communities We Serve

Designing Our Products

and Experience

Flexible Payment Schedules

HISPANIC

AFRICAN AMERICAN

Q: Important loan characteristics:Flexible payment schedules

Convenienceand flexibility

are more than 2xas important to Hispanic consumers

Q: I look for convenience in my financial products and services, even if it means higher rates or fees.

10% 9%

Speed of Lending

HISPANIC

AFRICAN AMERICAN

Q: Important loan characteristics:Speed of lending me the money I need

“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

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

HISPANIC

AFRICAN AMERICAN

Q: It’s important that companies make an effort to be active in my local community

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

Q: I would prefer to keep all my financial productsand services with a single institution.

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

Insights from Multicultural Consumers

What Matters Now™

cunamutual.com/whatmattersnow

All photos and quotations in this presentation were acquired through TruStage What Matters Now™ 2017-18 research. As such are CUNA Mutual Group Proprietary and Confidential Further Reproduction, Adaptation or Distribution Prohibited.

TruStage® Insurance products and programs are made available through TruStage Insurance Agency, LLC and issued by CMFG Life Insurance Company and other leading insurance companies. CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates. CUNA Mutual Group Proprietary and Confidential Further Reproduction, Adaptation or Distribution Prohibited CUNA Mutual Group © 2018

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