Part 1: Growing Together: Latin American-Inspired Strategies for U.S. Credit Unions
Recently, I had the privilege of attending Innovanci Internacional’s Punto Cero Conference in Colombia, where credit union professionals from Latin America and the U.S. came together to exchange best practices, learn from industry experts and celebrate the global credit union movement. It was an inspiring experience that left me in awe of the life-changing work Latin American credit unions perform daily.
I returned energized by the potential to leverage the best practices shared to enhance how U.S. credit unions serve members and drive growth. With over 65 million U.S. Latinos representing a wide range of Latin American countries, the financial experiences of many first-generation Latino immigrants are deeply influenced by their roots. These experiences, both positive and negative, shape their initial perceptions of financial institutions and the U.S. financial system as a whole. For U.S. credit unions, understanding this connection is a powerful opportunity to build trust, foster lasting relationships, provide dignified financial services and capture some of the $240 billion in revenue expected from Latinos in banking and other financial services by 2030.
While U.S. and Latin American credit unions share many similarities, they also have much to learn from each other. Among the many takeaways from the conference, six key themes stood out as particularly impactful for U.S. credit unions seeking to drive growth and maintain their relevance in the years ahead. I’ll start with three.
1. Transform the credit union model and member experience with technology
Financial technology has the power to transform member experiences and drive operational efficiency, enabling credit unions to better serve their communities and thrive in a competitive landscape. Latin American credit unions are demonstrating how strategic investments in core banking systems, mobile banking and payments solutions, supported by fintech collaborations and personalized service can improve accessibility, boost engagement and meet members’ needs wherever they are.
Cooperativa CAZ based in Zongolica, Veracruz, Mexico shared a powerful story of its 30-year digital transformation and the evolving digital and financial journey of its members. This journey began with two-way radios, member booklets and cash deposits – sometimes retrieved from backyards where they were buried for safekeeping – and progressed to a point where staff and members engage on tablets and members now confidently conduct most financial transactions online. From leveraging various payment solutions to utilizing biometric identification and digital signatures, this transformation has reached even the most remote areas of the state of Veracruz, Mexico, empowering some of the region’s most underserved populations.
2. Maximize impact with innovative partnerships and non-traditional branch strategies
Non-traditional branch models, such as kiosks and mobile units, are driving success in underserved communities. Coupled with partnerships that extend reach and resources, these strategies help Latin American credit unions meet members’ needs in flexible, cost-effective ways.
Cooperativa de Ahorro y Crédito Creafam’s kiosk located in a rural shopping center in the Santo Domingo de Savio neighborhood of Medellín, Colombia provides a convenient access point for members seeking to make loan payments, transfer money and conduct other financial services in a secure manner. The credit union partners with SerLogyC to facilitate the location and technology, while the credit union’s personnel provides services to members. This strategic collaboration allows the credit union to expand its presence and increase accessibility to rural populations in a cost-effective manner. Cooperativa Coogranada in Granada, Antioquia, Colombia offers traditional financial services to its members, in addition to an online marketplace for its small business members, travel services, insurance products and medical services amongst other products and services. These products and services have been created to meet their members’ and community’s needs.
3. Proactively engage the market – Don’t wait for it to find you
Rather than waiting for members to come to them, Latin American credit unions go to their communities. Whether through financial literacy programs, sports or physically with mobile units, vans and ATVs, they ensure their presence is felt and their services become indispensable to the communities they serve. Several credit unions supported youth sports teams, adult dance groups, art classes and even mental health counseling through their foundations. These initiatives offered creative avenues to connect with the broader community, both young and old, provide financial education and boost brand visibility. Testimonials from participants highlighted how these activities kept them engaged, introduced them to the credit union philosophy, and instilled values they might not have learned otherwise given their life circumstances. In doing so, the credit unions cultivate strong, loyal ambassador groups that continue to champion and promote their mission.
By adapting and adopting these strategies and insights, U.S. credit unions can enhance their ability to serve the rapidly growing Latino market and beyond, creating a more inclusive, engaging and transformative member experience. The lessons from Latin America offer new ways to envision growth, lean into technology and develop stronger member relationships in the years ahead.
Check back for Part 2, where I will dive into three more valuable insights from Latin American credit unions, highlighting strategies to empower members and build long-term loyalty.
