The banking experience for Hispanic consumers has improved over the past year, according to the second annual TD Bank Checking Experience Index survey. In 2014, 84% of Hispanic consumers describe their day-to-day experience with their checking account as “excellent” or “very good,” up 4 percentage points since 2013.
Nearly all (95%) of Hispanic consumers surveyed said they currently have a checking account, but some still use alternative banking services. Although most Hispanic consumers have a checking account and are generally happy with their bank’s services, 30% of survey respondents said they have used a check cashing service within the past three months, followed by 28% who used money transfer agents. The TD Bank Checking Experience Index is a nationwide survey of more than 1,500 consumers, including more than 500 Hispanics, with checking accounts at various financial institutions.
Human Interaction, Accessibility Are Important
When asked about their primary checking accounts and day-to-day banking needs, Hispanic consumers ranked their financial institutions as having friendly and helpful service (82%), accessibility (79%) and making day-to-day banking easier (78%) as being “excellent” or “very good.”
The top five ranked banking services which Hispanic consumers said were either “excellent” or “very good” were:
- Debit card or check card (84%)
- Easy to use online banking (83%)
- Online bill pay (81%)
- Online account-to-account transfers within your bank (79%)
- Convenient banking hours (73%)
More than half (59%) of Hispanic consumers said that availability of materials in Spanish for their primary checking accounts and day-to-day banking needs was either “excellent” or “very good.”
Alternative Preferences with Modern Banking Behaviors
Check cashing services are still commonly used by Hispanic consumers, despite having a bank account. Of the 30% of Hispanic survey respondents who reported using check cashing services, they cited the following reasons for using them:
- Cashing a check (19%)
- Convenience (13%)
- Need for cash (12%)
Of the 28% of Hispanic consumers who used money transfer agents, they did so to transfer/send money to friends/relatives (14%) and transfer/send money out of the USA (13%).
Regional Differences
Hispanics in New York City and Miami/Ft. Lauderdale have similarities and differences with their banking behavior:
- More Hispanic consumers in Miami/Ft. Lauderdale have checking accounts compared with Hispanic consumers in New York City (98% versus 88%)
- Hispanic consumers in New York City reported using a check cashing service in the past three months than those in the Miami/Ft. Lauderdale area (56% versus 40%)
- More Hispanic consumers in Miami/Ft. Lauderdale have used money transfer agents (74%) than those in New York City (69%)
- Prepaid card usage for day-to-day purchases in Miami/Ft. Lauderdale (40%) is significantly higher than Hispanics in New York City (13%)
- Most Hispanic survey respondents in New York City use prepaid cards for online purchases (63%)
- More Hispanic consumers in Miami/Ft. Lauderdale rated their bank as excellent and/or very good (83%) compared to those in New York City (73%)
- Hispanic respondents in both markets said that the debit/check card is essential and can’t imagine not having this service (69% New York City, and 64% Miami/Ft. Lauderdale)