New Prepaid Card Targets Hispanics

November 10, 2011

Let's hear it for market segmentation. Coopera, the consulting arm of the Credit Union National Association (CUNA), is rolling out a new prepaid card designed specifically to help transition Hispanics into the financial mainstream.

Developed with help from The Members Group (a credit card processor that specializes in community banks and credit unions), the new Coopera card is a reloadable prepaid Visa debit card with features that makes it easier and less expensive to send money to family back home.

Young and largely underserved by traditional financial institutions, The Hispanic market is young, large and growing. (More in depth coverage of this market segment can be found in this previous report. and this report.) Yet, Coopera says it has found that the Hispanic markets are at segment that doesn't respond to traditional banking strategies.

"Many Hispanics avoid traditional financial services due to a lack of traditional identification documenet, language barriers or a mistrust of financial institutions," said Miriam De Dio, a vice president at Coopera.

"Affordable prepaid cards with transparent pricing have the potential to become a bridge to mainstream banking services for many Hispanic families otherwise priced out of traditional bank accounts," added Janice Bowdler. Bowdler directs the Wealth-Building Policy Project at the National Council of La Raza, the Hispanic civil rights/advocacy group.

One credit union that has signed on the offer the new card is Amarillo County Federal Credit Union in Amarillo, TX. "We see the Coopera Card as a way to ease our Hispanic members into the financial mainstream," said Arna Reynolds, the credit union's CEO.

Americans purchase $75 billion a year in money orders from non-banks

_{-Federal Reserve}