Tennessee banks that delay development of a marketing strategy to reach Hispanic business owners risk losing access to the fastest-growing market segment in the state, says a report by MBA students at the University of Tennessee.

For six weeks last fall, 13 teams of students researched the existing data on the state’s Hispanic business community and interviewed hundreds of Hispanic business owners across Tennessee.

The purpose of the project, which was sponsored by First Tennessee Bank, was to find the best time to launch a Hispanic marketing strategy and what banking services should be included.

“Interestingly, all of the teams came back and said the same thing: Now is the time to jump. This is a rapidly growing market segment looking for financial services,” said Sarah Gardial, associate dean for academic programs and a professor in the Department of Marketing and Logistics.

The student reports also emphasized the need for banks to invest in hiring bilingual tellers and loan officers, as well as to develop Spanish-language materials.

But Gardial called that the “low-hanging fruit” of the research project.

“The real insights of the research is the desire of the Hispanic market to build relationships with financial service providers,” Gardial said. “It boils down to one word – community. If the Hispanic community feels they are being supported by a financial institution, they will support the institution.”

Read more