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The University of Virginia Darden School of Business and its Tayloe Murphy Center released the findings of a major study today that outlines specific steps for how banks and credit unions can capture billions of dollars in deposits by reaching out to Latino and other “unbanked” households across the United States.

The year-long study titled “Perdido En La Traducción: The Opportunity in Financial Services for Latinos” also demonstrates for the first time that persuading households to keep their money in banks and credit unions could lower the risk of robberies and raise property values.

Nationwide, there is more than $169 billion floating outside the formal banking system attributed to unbanked households, of which $53 billion comes from unbanked Latino households.

“This study gives the financial services industry, policy makers and market watchers information they can use and a real measurement of the scope of this hidden market. At the same time, it not only represents a significant financial opportunity, but also highlights the wide-ranging benefits for communities,” says Greg Fairchild, executive director of the Tayloe Murphy Center and Darden professor.

The study focuses on unbanked Latino households in Virginia and North Carolina. Latinos are the fastest- growing multi-ethnic group in many states, including Virginia, as well as nationwide.

Many of the findings can also be applied nationally to any household that is unbanked, regardless of ethnicity, background, geographic location or length or status of residence. READ MORE