| 'Hispanic Outreach' is the standard term for the | | | | account, and frees them from high-cost check |
| banking industry's efforts to reach the Hispanic | | | | cashing stores to cash their pay checks and to send |
| community. Yet, despite Hispanic consumers' growing | | | | money to family in their home countries. A key |
| economic clout, few banks have been successful at | | | | component of that program is its path-to-banking |
| serving this important market. Perhaps the problem is | | | | mission, which has also been successful. Barrie |
| the term 'Hispanic Outreach' itself, and maybe it is | | | | Graham, president and CEO of Exchange Bank |
| time to try a different approach: Hispanic Inclusion. | | | | explains, "Launching this new product is part of our |
| Banks that want to reach the Hispanic community | | | | effort to reach our region's growing Hispanic |
| find daunting challenges with the Patriot Act's | | | | community. The payroll deposit card is helping our |
| customer documentation and anti-money laundering | | | | commercial customers to help their employees." |
| mandates, combined with often conflicting FDIC | | | | Exchange Bank is not practicing simple outreach, this |
| regulations. Then there is the Community | | | | is Hispanic Inclusion. |
| Reinvestment Act (CRA) which requires banks to | | | | On the other side of the country, First American |
| proactively identify the different socioeconomic | | | | Bank and Trust has found another path to Inclusion. |
| groups in their communities, and to develop plans to | | | | With eight branches in and around Athens, Georgia, |
| help further economic growth for those communities | | | | 60 miles east of Atlanta, that 78 year-old community |
| through loans, investment, and services. However, | | | | bank created a separately-branded bank branch called |
| the CRA is not a 'how-to' manual, and so for many | | | | El Banco de la Oportunidad. Bobby Heath, president |
| banks there is an impasse. | | | | of First American Bank explains, "We tried the usual |
| The good news is that there are banks moving | | | | approaches of using bilingual tellers, signage, and |
| beyond outreach. In Santa Rosa, California, 50 miles | | | | deposit slips, but found they didn't create the |
| north of San Francisco, Exchange Bank has joined a | | | | comfort level needed for establishing a relationship |
| community it wishes to serve. Exchange Bank is a | | | | with an English-speaking bank. The message back to |
| 117 year-old community bank with the vision to put | | | | us was that we needed a more complete approach, |
| the only standalone bank branch in an area called | | | | making the whole family feel comfortable." |
| Roseland, the heart of the highest Hispanic population | | | | That realization led to creating a separate trade-name |
| section of Santa Rosa. That building is a statement | | | | bank that is integrated into the bank's regular |
| saying, "We want to be included in your community, | | | | operations. The result is a bank branch that feels |
| and to include you into our business mission." | | | | more like a community center than a bank. The |
| Wanda Tapia, president of the Santa Rosa Hispanic | | | | branch, located next to a grocery store and |
| Chamber of Commerce, believes that Exchange | | | | laundromat, includes a children's play area; the bank |
| Bank's initiatives are important to the local Hispanic | | | | even encourages people to bring their kids to play |
| community. "Many of the folks are new here and | | | | while waiting for their laundry to get done. Another |
| may not have the mobility that we take for granted. | | | | important touch is the community room for Hispanic |
| Having that bank branch in their neighborhood is very | | | | groups to use for training and community meetings. |
| important to them. And now other businesses are | | | | The bank is available to their traditional customers, |
| saying, 'We should be there, too.'" | | | | and so in many ways it serves as a center for |
| Exchange Bank also encourages its employees to | | | | community melding. Opened in April 2005, the branch |
| actively volunteer in the Hispanic community, including | | | | was planned to take three years until profitable |
| volunteering to teach English and personal finance in | | | | operation and is ahead of expectations. |
| community centers; the manager of the Roseland | | | | The banking industry must now look to examples like |
| branch also serves on the executive board of the | | | | Exchange Bank, First American Bank and Trust with |
| Hispanic Chamber of Commerce. Ms. Tapia makes it | | | | their El Banco de la Oportunidad, and others who are |
| clear, "There is no question of commitment when | | | | making commitment to serve their communities by |
| they take the time to be involved in the community." | | | | being part of those communities. The message is |
| The third area of commitment is Exchange Bank's | | | | clear: creating the greatest economic good can only |
| investment in new bank products developed for the | | | | be achieved once we move beyond outreach. The |
| Hispanic community. One program centers around a | | | | time has come for banks to move to Hispanic |
| payroll deposit card that allows unbanked Hispanic | | | | Inclusion. |
| workers to enjoy many of the benefits of a bank | | | | |