Multicultural markets are underserved by the financial services industry for many reasons, but the good news is the current state can change, and is changing.
First, executives and leaders in financial services companies are starting to educate themselves about the markets and get the straight story. There is a strong interest in and need for financial products and services in multicultural markets, especially as the cultural markets continue to grow. Who can ignore the recent Census Bureau’s findings indicating that America is becoming more diverse? According to the Pew Research Center, “Racial and ethnic minorities accounted for 91.7% of the nation’s population growth over the past decade.”
Could it be that the word underserved creates discomfort among financial services professionals? Maybe the word underserved has developed a bad connotation? As in, underserved = people who are unable to afford products or services; underserved = people who are poor risks; underserved = unprofitable business; underserved = down market. All of these, of course, are presumptions that lead to misperceptions and stereotypical thinking, if not challenged. The fact is the served population is shrinking, and there is no denying it!