Cultivating Sales Across Cultural Lines:
How to Maximize Your Yields from California’s Growing Diversity Meeting the Needs of a
Diverse Hispanic Population
by Bert Salazar

At more than 40 million people and growing, the Hispanic population is becoming the largest minority group in the United States. By the year 2050, half of the U.S. population will be of minority status and one in four citizens will be of Hispanic heritage, according to the Dept. of Commerce. As astounding as these figures are, financial professionals have not penetrated this market.
    Even as Hispanic wealth grows exponentially, their knowledge of the tools that can help them accumulate future wealth is at a plateau. The financial needs of Hispanics are no different from those of other cultures. What is different is how you approach them. In order to address the many concerns of this dynamic society, it is important to understand their cultural backgrounds, values, beliefs, motivation, and history.
    The U.S. Hispanic population can be divided into three groups: the immigrant Hispanic, the assimilated Hispanic, and the American Hispanic. Each of these groups has differing values and aspirations. Understanding each group will give you the insight to address their needs. Because of their differences, you need to understand which Hispanic you’re marketing to and why.
    The immigrant Hispanic is typically a transient who is leaving an oppressive government, looking for a better job and economic situation. This person has been in the U.S. for a relatively short time. They do not typically have full command of English and prefer most communication in their native language (first contact, brochures, etc.). This person may not have a full understanding of our financial systems. Since they are trying to create a new life for themselves and usually their family as well, a good first approach would be term or whole life insurance.
    The assimilated Hispanic has been in the U.S. for quite a long time; has adopted the American way for the most part and has a great command of the English language. This group normally includes longtime U.S. residents or naturalized citizens who were born elsewhere. This person is comfortable speaking and communicating in English and Spanish. Priorities for this group may range from home ownership, starting a small business, sending their children to college, and protecting assets.
    The American Hispanic is usually part of a second or later generation with English as their native language. Some are bilingual, but most prefer English as their primary communication. They are very educated, earn the most per capita of the three groups, and have a better understanding of the American financial system. This group is most concerned with a legacy for their children, the business continuity, employee benefits, wealth accumulation, estate planning, and retirement planning.
    I hope that the above breakdown gives you a better understanding of who fits in with your ideal client profile. In order to succeed with Hispanic clients you must align yourself with organizations with which you can make direct contact with your target clientele. To reach blue-collar workers, you may want to touch base with an English-as-a second-language institute to offer a seminar on basic financial preparation. Have bilingual brochures available.
    Many assimilated Hispanics who have started their own businesses may be members of local small business owners’ organizations. For this scenario, contact a local bank that specializes in small business loans or join the local Hispanic Chamber of Commerce. You don’t have to be of Hispanic origin to join. Many organizations, such as the Hispanic Chamber of Commerce, simply ask that you are dedicated to increasing business relationships and partnerships between the corporate sector and Hispanic-owned businesses.
    The American Hispanic will be a bit savvier in whom they choose to entrust their finances. To reach this market, provide them with networking opportunities and have referrals and recommendations handy. Hispanics are very open to working with people outside of their cultural ties. But, they need to know, respect, and trust you before they sign over the business. The financial planner who educates Hispanics on financial planning, long-term care issues, and succession planning will make a client for life.
    Many financial planners have also cited language as a barrier to serving the Hispanic market. But, as mentioned earlier, only one of the three Hispanic groups mentioned above speaks only Spanish. The assimilated and American Hispanics welcome communications in English, which is the language with which they are most comfortable.
    Many financial professionals may reach for the American Hispanic business because they hold the majority of the wealth, but we should not forget the immigrant Hispanic. That is where the fastest growth is occurring in the Hispanic population. Besides their need for financial advice, they are brand loyal. It’s the type of client everyone dreams about. Hispanics make up a great market since they are big believers in word-of-mouth referrals. If someone gives you their stamp of approval, you can be certain that you will also acquire the business of their family members, neighbors, and associates.
    This group truly values relationships. By showing an interest in their communities and financial future, they appreciate the investment we are making. This is a vertical move we can all make to expand our own professional reach. Hispanics feel strongly that the U.S. offers more opportunities for themselves and their children to get ahead in terms of employment and education. As financial planners, we must familiarize ourselves with their goals and educate them on how to achieve them.
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Bert Salazar is executive vice president of AXA Advisors, LLC. He is responsible for the day-to-day operations of 125 financial professionals in Orange County. He is a registered representative and investment advisor representative who offers securities products and investment advisory services through AXA Advisors, LLC and is an agent who offers annuity and insurance products through AXA Network, LLC and its affiliates. For more information, call 212-314-4600.