Latino Financial Access and Inclusion in California, a research report published by the National Council of La Raza, investigates the ways by which the financial services industry interacts with the Latino community in California; the extent to which Latinos are financially engaged; and the tools and technology used in order to promote or prevent access to financial services. The Hispanic customer base is "on the margins of the banking system" and they are often left dissatisfied when seeking financial services from financial institutions.

The NCLR California Financial Access Survey revealed new information and reinforced long-held knowledge about Latinos and their finances, including news that Latinos are among the most unbanked ethnic groups in America, and the link between citizenship, finances and the financial system. In the lowest income bracket, unemployed, and/or immigrants, the financial lives of low-income Latinos are ones of financial isolation, and this demographic lacks access to quality information and affordable credit. In a difficult economy Latinos can't depend on support from banks. Rather, they scrap and save -putting away money on a regular base and securing money in several ways: prepaid cards, uncashed checks, and finances held by a relative.

Citizenship also plays a role in bank usage. Naturalized foreign-born Latinos have a higher level of financial engagement compared to those who haven't been naturalized. The enormous cost of naturalization was additionally identified as why eligible immigrants had not done so. While citizenship increases financial opportunities, it's also unaffordable for many who'd like to benefit from its advantages.

"As the Senate debates how to overhaul our nation's immigration system, it is interesting to note the link between immigration status and engagement in our financial institutions," stated Janet Murguía, President and CEO of NCLR. "Many eligible immigrants have been unable to naturalize because of the cost prohibitive fees, while others may be struggling with finding a way to fully legalize their status under current law. There is no doubt that Hispanics are an increasingly critical consumer base, particularly in times of economic recovery when their full participation helps to stimulate the economy through purchases and savings. The more engaged and fully participating in our financial services they are, the more they and the nation benefit."

Survey participants stated that they were financially vulnerable, and had difficulty meeting financial obligations. These individuals have lower levels of savings, and are likely to withdraw from the banking system if they haven't already done so. Participants want financial advice from financial industries, however language access and targeted marketing isn't utilized by banking institutions as well as it should be. Customer service is paramount for Latinos, recognizing it as the most important when conducting banking. Technology isn't attractive to those who aren't familiar and/or skeptical about security and privacy violation.

The survey also revealed that young Latinos between the ages of 18 and 25 were more likely to own accounts at high rates, and they weren't as concerned about factors such as customer service and language.