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