The rising population of global citizens (ie foreign-born) in the US, which accounts for over 14% of the country’s total population, represents a significant opportunity for FIs to engage with a diverse and growing customer base. This group brings unique financial needs shaped by cultural and linguistic needs, requiring banks to adopt inclusive and tailored approaches.
Foreign-born adults value accessibility, trust, and affordability when choosing financial providers. Fee-free overdraft protection and international transfers are features that appeal strongly to this group, while personal networks and community involvement play a critical role in their engagement with financial advice and providers.
Personalized products, educational resources, and community-driven outreach must remain top-of-mind for FIs looking to foster trusting, long-term relationships with a group that is vital to the country’s economy and society.
Note: In the context of this report, “foreign-born” refers to adults who were born outside the US, while “newcomers” refers to foreign-born adults who have resided in the country for less than five years. These consumers are also collectively referred to as “global citizens”.
This report looks at the following areas:
- Financial product ownership
- Motives behind latest credit card opening
- Channels used to interact with providers
- Banks used
- Motives behind choosing current provider
- Most valuable banking features
- Sources used for financial advice
- Behaviors and attitudes toward FIs
Consumers born outside of the US represent a dynamic and growing market for FIs, driving the need for inclusive, accessible, culturally sensitive solutions.
Amr Hamdi, Senior Analyst – Financial Services
Market Definitions
“Foreign-born” refers to adults that were born outside of the US, while “newcomers” refers to foreign-born adults that have resided in the country for less than five years. These consumers are also collectively referred to as “global citizens”.
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EXECUTIVE SUMMARY
- What you need to know
- Foreign-born adults grapple with a wide range of barriers during initial engagement with FIs
- Graph 1: barriers foreign-born consumers faced when interacting with FIs for the first time, 2024
- There remains a need for inclusive banking solutions tailored to newcomers
- Newcomers lag in ownership across entry-level financial products
- Graph 2: foreign-born consumers’ financial product ownership, by time lived in the US, 2024
- 64% of newcomers would be interested in bundling multiple products
- Graph 3: foreign-born consumers’ interest in bundling financial products, by time lived in the US, 2024
- Market predictions
- Opportunities
- Younger newcomers place a higher reliance on personal networks when choosing their FI
- Graph 4: motives behind choosing current provider, by time lived in the US and age, 2024
- CIBC and Chime speak to the mutual benefits of its referral offers, with the former taking a culturally-targeted approach
- YouTube and Facebook are the two most used social media channels for financial advice
- Graph 5: social media platforms foreign-born consumers use for financial advice, 2024
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MARKET DYNAMICS
- Market context
- Market drivers
- America’s foreign-born population has been an upwards trajectory for the past half-century
- Graph 6: number and percentage of foreign-born adults in the US, 1970-2023
- Four in ten foreign-born adults are 55 or older, but a sizeable share are between the ages of 18-44
- Graph 7: foreign-born vs native-born consumers, by age, 2024
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CONSUMER INSIGHTS
- Consumer fast facts
- Foreign-born consumer profile
- A third of foreign-born adults are Hispanic
- Graph 8: foreign-born consumers, by race and ethnicity, 2024
- Over a third of foreign-born adults are bilingual Spanish speakers
- Graph 9: foreign-born consumers, by languages primarily spoken at home, 2024
- Foreign-born adults are most likely to fall in lower income brackets
- Graph 10: native-born vs foreign-born consumers, by household income, 2024
- Parents make up half of foreign-born adults
- Graph 11: foreign-born parents, by age of children in household, 2024
- Foreign-born consumers’ needs vary based on length of time in the US
- Graph 12: foreign-born consumers, by time lived in the US, 2024
- Retention efforts and catering to specific needs can help create customers for life
- A third of foreign-born adults are in full-time positions
- Graph 13: foreign-born consumers’ employment status, 2024
- Canadian FIs leveraged the power of partnerships to support newcomers’ search for employment
- Financial product ownership
- The majority of foreign-born adults have basic banking products, but acquisition opportunities are still aplenty for FIs
- Graph 14: native-born vs foreign-born consumers’ financial product ownership, 2024
- Marcus speaks to how high-yield savings account can support achieving one’s financial goals
- US Bank clearly outlines its eligibility requirements when opening an account
- Investing is core to wealth-building and retirement, yet foreign-born consumers are still behind when it comes to ownership levels
- Graph 15: investment ownership, by time lived in the US, 2024
- Different segments necessitate tailored approaches around retirement and investing outreach
- Different segments necessitate tailored approaches around retirement and investing outreach (cont’d)
- Motives behind credit card opening
- Rewards and credit building are the primary motivations behind foreign-born consumers’ recent card opening
- Graph 16: foreign-born consumers’ motives behind opening their newest credit card, 2024
- FIs promote their secured offerings by speaking to both the credit-building and monetary rewards of the product
- Younger foreign-born adults are more likely to be driven by a combination of credit building capabilities and rewards
- Graph 17: foreign-born consumers’ motives behind opening their newest credit card, by age and household income, 2024
- Channels used to interact with providers
- Mobile is most used, but in-person interactions still provide great value
- Graph 18: how foreign-born consumers interact with their providers most frequently, 2024
- Position branches as relationship-building hubs
- Compared to their younger counterparts, older foreign-born adults are most likely to utilize branches as a medium of interaction
- Graph 19: how foreign-born consumers interact with their providers most frequently, by age, 2024
- Banks foreign-born consumers use
- The majority of foreign-born consumers are banked with the Big Four
- Graph 20: banks foreign-born consumers use, 2024
- Hispanic foreign-born adults are more likely to bank with BofA
- Graph 21: banks foreign-born consumers use, by race and ethnicity, 2024
- Chase serve the higher-end of the income spectrum among foreign-born adults, while BofA and Wells Fargo are engaged with a more diverse group
- Graph 22: banks foreign-born consumers use, by household income, 2024
- Despite heavily trailing the legacy FIs, online-only banks have still captured a solid share of younger foreign-born consumers
- Graph 23: banks foreign-born consumers use, by age, 2024
- Motives behind choosing current provider
- Accessibility, trust, and affordability – the trifecta behind foreign-born consumers motives when choosing their FI
- Graph 24: motives behind choosing current provider, 2024
- These diverse motives require distinct solutions if FIs are to capture a greater share of foreign-born consumers
- The human experience, especially for Hispanic and bilingual consumers, plays a critical acquisition role
- Graph 25: motives behind choosing current provider, by race, ethnicity, and language spoken, 2024
- Rewards programs present fruitful engagement grounds with foreign-born consumers
- Graph 26: motives behind choosing current provider, by household income, 2024
- Most valuable banking features
- The level-setting of features across fintechs, online-only and legacy FIs is increasing the competitive playing field
- Graph 27: most valuable banking features for foreign-born consumers, 2024
- Nearly half of newcomers consider international money transfers valuable to them
- Graph 28: most valuable banking features for foreign-born consumers, by time lived in the US and age, 2024
- Lower-income households place a higher value on overdraft protection
- Parents desire flexibility and help with saving
- Graph 29: most valuable banking features for foreign-born consumers, by parental status, 2024
- Sources used for financial advice
- Trust and familiarity impact go-to sources for financial advice
- Graph 30: sources foreign-born consumers use for financial advice, 2024
- Reliance on their family & friends for advice is driven by younger age groups
- Graph 31: foreign-born consumers’ usage of family/friends for financial advice, by age, 2024
- Social media can be a valuable source of learning, especially for younger consumers
- Graph 32: foreign-born consumers’ usage of social media for financial advice, by age, 2024
- Messaging about diverse advisory networks remains key, particularly speaking to this groups’ linguistic and cultural needs.
- Graph 33: foreign-born consumers’ usage of financial advisors for advice, by household income, 2024
- Behaviors and attitudes toward FIs
- The variance in trust across these diverse segments underscores the need for a more tailored engagement approach
- Graph 34: foreign-born consumers’ satisfaction and trust in their providers, by age, race, and ethnicity, 2024
- Hispanic and Asian adults value banking at FIs that actively contribute to their communities
- Graph 35: foreign-born consumers’ importance placed on FIs’ community involvement, by race and ethnicity, 2024
- The majority desire educational resources tailored to their current situations
- The majority of newcomers agree that credit scores are not an accurate indication of their repayment capabilities
- Graph 36: foreign-born consumers’ attitudes towards credit scores, by time lived in the US, 2024
- Fintechs, like Nova Credit, have stepped up in recent years to address this pain point among newcomers
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Innovation and Marketing strategies
- Marketing and advertising
- Bank of America’s webpage is a best-in-class example of how legacy FIs can support newcomers
- Bank of America’s webpage is a best-in-class example of how legacy FIs can support newcomers (cont’d)
- Through targeted outreach, Majority highlights a wide range of benefits its foreign-born Hispanic audience will resonate with
- RBC humanizes its diverse advisory network, helping the brand appear more relatable to foreign-born consumers
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APPENDIX
- Market definition
- Consumer research questions
- Consumer research methodology
- Generations
- Abbreviations and terms
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