According to the most recent report Census Bureau report (2004), about 40 million Hispanics live in the United States, up 13 percent from 2000. By 2050, that number is projected to increase by 188 percent to 102.6 million. This isn’t another issue of immigration or race – but rather what one company is doing to address the needs of a growing population.Nuevo Financial Center (OTCBB: NVFN) was founded in 1998 to cater to the growing Hispanic population in the United States, specifically those needing financial and linguistic transactional assistance, as well as cash remittance services. The company provides wire transfers and other financial and telecommunication services, cell phones, calling cards and Internet access to what it believes to be a highly under-served community.
Nuevo Financial CEO Sebastian Giordano told Market News First the company wants to position itself as a leading brand catering to the fast-growing community.
“Certainly the numbers speak for themselves, the size of the market speaks for itself … the Hispanic market is the fastest growing market,” Giordano said.
Nuevo Financial currently operates 13 centers in the New York and New Jersey areas and is looking to expand its reach into the Hispanic communities through partnerships with financial companies. It is also in preparation to become publicly traded as soon as next week.
Giordano estimated the number of multi-service centers targeting the Hispanic community in the United States between 10,000 and 30,000. He noted the company is interested in acquisitions or mergers that will allow for ownership that may lead to expansion in the market.
“We’re looking at strategic acquisitions that will give us a product line and also potential entry into new markets,” he added.
Using a combination of organic and acquisition growth, paired with the quality of services offered through package options, Giordano said Nuevo Financial’s products will give the consumer more value in what they’re getting. The lack of an established brand will also allow for growth.
“The ability to establish a recognized brand is going to be critical – saturation in most of the major markets will also be important to us and how we ultimately roll out the distribution of our centers and the financial products that we offer,” he said. “We see a significant opportunity to expand – but it’s about building a quality brand not just opening up a location.”
Aside from services currently offered, Nuevo Financial intends to offer check cashing, tax preparation, payday loans, money orders, real estate, travel and more. The company eventually anticipates creating a network of distribution channels through Mexico and Latin America.
According to the company, it looks to leverage its growth through new and existing operations, catering to what it considers the underserved and growing Hispanic community. Becoming publicly trading (aiming for the OTCBB) and launching a Web site are some of the necessary steps – but so is keeping with the technological trends of the time.
Nuevo Financial started out as a telecom center offering cell phones calling cards and such, and is moving into the wire remittance market.
“It’s a great traffic generator – you have to really keep an eye on the evolution of technology,” Giordano concluded.
