NOP World Hispanic American Study Uncovers Financial Services Satisfaction Gap

Lack of Spanish Language Communications Cited as Key Factor



May 24, 2005, 01:00 ET from NOP World

    NEW YORK, May 24 /PRNewswire-FirstCall/ -- NOP World today announced
 results of its new Hispanic OmniTel(TM) Financial Services Study which found
 only 35% of Hispanic Americans "very satisfied" with "where they have their
 money today," well below the 50% level of satisfaction found among Americans
 in general.
     The survey was conducted by telephone among a nationally representative
 sample of 500 Hispanic Americans, who are now the largest minority market in
 the United States.
 
     Language Barrier A Primary Challenge
     A lack of Spanish language communication from financial services companies
 is a key factor in lower satisfaction levels among Hispanics.  Nearly two-
 thirds of Hispanic Americans say financial services companies communicate in
 Spanish less often than they would like. At the same time, more than half say
 it's very important that financial companies communicate in Spanish through
 their representatives and agents (62%), financial statements (58%), toll-free
 numbers (58%), and brochures (55%).
 
     Obstacles Beyond The Language Barrier Also Cited
     In the investments arena, Hispanic Americans report many other obstacles
 beyond the language barrier.  The leading problem reported as a "major
 obstacle" by just over half (51%) of Hispanic Americans was not having enough
 money to invest, a slightly higher percent than for Americans in general
 (45%).
     In addition, 42% of Hispanic Americans point to a lack of knowledge as a
 major obstacle (vs. 23% of Americans in general), 41% cite not knowing whom to
 trust with one's money (vs. 31% of the general population), 39% report concern
 over where to get trustworthy advice (vs. 29%), and 33% cite confusion about
 whom to contact (vs. 18%).
     "The study's findings suggest that Hispanic Americans just aren't getting
 the information they need in a form that they can use it, and the result is
 confusion, uncertainty, and low levels of trust," said Nick Iadicicco, Senior
 Vice President of NOP World Financial, who designed the poll.  "Financial
 services companies need to do a better job of reaching out to and
 communicating with this market, which is projected to grow rapidly over the
 next several years-much faster than the rest of the U.S. population."
     While the study found that Hispanics are less likely to own a wide range
 of financial services products than other Americans, half reported having
 savings and checking accounts, 24% said they have universal life insurance,
 and 13% own mutual funds outside of employer-sponsored plans.  Another
 obstacle uncovered is that only 39% have retirement savings plans available at
 work, well below the 64% of other Americans. When these plans are available,
 participation rates for Hispanic Americans are lower, at 53% compared to 71%
 of the general population.
     "While Hispanic Americans have fewer assets than average, we believe
 that's only partly to blame for low ownership levels for financial products
 and services," adds Iadicicco. "Lower levels of knowledge, confidence and
 trust are all important factors, as well, and these need to be addressed more
 proactively by banks, insurers and investment companies."
 
     About Hispanic OmniTel(TM)
     NOP World's Hispanic OmniTel is a bimonthly survey of the Hispanic
 American market that represents all Hispanic American adults nationwide.  The
 survey offers an efficient way to understand trends and issues relating to
 this rapidly growing market.
 
     About NOP World ...
     A leading supplier of syndicated and custom research, NOP World offers
 focused expertise across six areas -- automotive, business and technology,
 consumer and retail, financial services, health and media.  Industry
 specialists are supported by five Centers of Excellence.  Four focus on the
 key stages of the marketing cycle -- Market Opportunity, Brand Strategy,
 Marketing Effectiveness and Customer Management.  The fifth -- NOP World's
 Research Center of Excellence -- provides best-in-field research design,
 methodologies and analytics.
 
      For more information contact:
      Malkie Bernheim/Francine Vassallo         Liz Nolley
      Padilla Speer Beardsley                   NOP World
      212-752-8338                              800-456-4405, ext. 3520
      mbernheim@psbpr.com/fvassallo@psbpr.com   enolley@nopworld.com
 
 

SOURCE NOP World
    NEW YORK, May 24 /PRNewswire-FirstCall/ -- NOP World today announced
 results of its new Hispanic OmniTel(TM) Financial Services Study which found
 only 35% of Hispanic Americans "very satisfied" with "where they have their
 money today," well below the 50% level of satisfaction found among Americans
 in general.
     The survey was conducted by telephone among a nationally representative
 sample of 500 Hispanic Americans, who are now the largest minority market in
 the United States.
 
     Language Barrier A Primary Challenge
     A lack of Spanish language communication from financial services companies
 is a key factor in lower satisfaction levels among Hispanics.  Nearly two-
 thirds of Hispanic Americans say financial services companies communicate in
 Spanish less often than they would like. At the same time, more than half say
 it's very important that financial companies communicate in Spanish through
 their representatives and agents (62%), financial statements (58%), toll-free
 numbers (58%), and brochures (55%).
 
     Obstacles Beyond The Language Barrier Also Cited
     In the investments arena, Hispanic Americans report many other obstacles
 beyond the language barrier.  The leading problem reported as a "major
 obstacle" by just over half (51%) of Hispanic Americans was not having enough
 money to invest, a slightly higher percent than for Americans in general
 (45%).
     In addition, 42% of Hispanic Americans point to a lack of knowledge as a
 major obstacle (vs. 23% of Americans in general), 41% cite not knowing whom to
 trust with one's money (vs. 31% of the general population), 39% report concern
 over where to get trustworthy advice (vs. 29%), and 33% cite confusion about
 whom to contact (vs. 18%).
     "The study's findings suggest that Hispanic Americans just aren't getting
 the information they need in a form that they can use it, and the result is
 confusion, uncertainty, and low levels of trust," said Nick Iadicicco, Senior
 Vice President of NOP World Financial, who designed the poll.  "Financial
 services companies need to do a better job of reaching out to and
 communicating with this market, which is projected to grow rapidly over the
 next several years-much faster than the rest of the U.S. population."
     While the study found that Hispanics are less likely to own a wide range
 of financial services products than other Americans, half reported having
 savings and checking accounts, 24% said they have universal life insurance,
 and 13% own mutual funds outside of employer-sponsored plans.  Another
 obstacle uncovered is that only 39% have retirement savings plans available at
 work, well below the 64% of other Americans. When these plans are available,
 participation rates for Hispanic Americans are lower, at 53% compared to 71%
 of the general population.
     "While Hispanic Americans have fewer assets than average, we believe
 that's only partly to blame for low ownership levels for financial products
 and services," adds Iadicicco. "Lower levels of knowledge, confidence and
 trust are all important factors, as well, and these need to be addressed more
 proactively by banks, insurers and investment companies."
 
     About Hispanic OmniTel(TM)
     NOP World's Hispanic OmniTel is a bimonthly survey of the Hispanic
 American market that represents all Hispanic American adults nationwide.  The
 survey offers an efficient way to understand trends and issues relating to
 this rapidly growing market.
 
     About NOP World ...
     A leading supplier of syndicated and custom research, NOP World offers
 focused expertise across six areas -- automotive, business and technology,
 consumer and retail, financial services, health and media.  Industry
 specialists are supported by five Centers of Excellence.  Four focus on the
 key stages of the marketing cycle -- Market Opportunity, Brand Strategy,
 Marketing Effectiveness and Customer Management.  The fifth -- NOP World's
 Research Center of Excellence -- provides best-in-field research design,
 methodologies and analytics.
 
      For more information contact:
      Malkie Bernheim/Francine Vassallo         Liz Nolley
      Padilla Speer Beardsley                   NOP World
      212-752-8338                              800-456-4405, ext. 3520
      mbernheim@psbpr.com/fvassallo@psbpr.com   enolley@nopworld.com
 
 SOURCE  NOP World