The evolution of BB&T’s Multicultural (MC) Strategy has been one of the bank’s most important initiatives due to continuously accelerated growth in MC segments. The MC strategy represents BB&T’s first strategic initiative to target specific demographic market segments. Multicultural Banking Centers (MBCs) were created to target a single cultural segment defined by a 15 percent population concentration within a three-mile radius of the branch. In 2013, the number of MBCs grew to 347 (a 32 percent increase over 2012). Because of a significant 10 percent Hispanic/Latino growth rate (seven times greater than the general market), most MBCs target a Spanish-speaking segment.
Initially, MBCs were supported by a small network of trainers who would travel to newly minted MBCs and deliver generic “growing your MC market” training. An online course was also available, but both lacked the breadth and depth of knowledge necessary to execute growth strategies. BB&T found speed to competence was lagging and MBCs were struggling to grow MC households. It became evident that MBC market leaders, of whom only one-third speak Spanish, lacked confidence to build trusting relationships with MC community leaders.
In 2013, BB&T University launched the “Amigo Program” to meet a growing need for associates capable of supporting community-specific MC strategies. The Amigo experience creates partnerships between new MBC leaders and experienced MBC leaders to transfer market-specific experience and knowledge.
Program Details
Protégés and mentors meet monthly to practice building trust within Hispanic/Latino communities. During the six-month timeframe, mentors cover resources, local MC organizations, financial literacy, staffing, and MC committees. Protégés learn how to build relationships with three essential “places of trust” for Spanish-speaking communities: churches, public schools, and small businesses.
Most importantly, the Amigo program focuses on those affected by the Deferred Action for Childhood Arrivals program (DACA). In 2012, legislation was passed that permitted undocumented immigrants who arrived as children to:
(a) Be eligible for work authorization for a period of two years, after which the individual can either request an extension or a social security number
(b) Open checking and savings accounts
Those affected by DACA were under the age of 31 as of June 15, 2012, and came to the U.S. before age 16. Through the Amigo program, mentors communicate the importance of targeting those affected as a critical growth segment.
Results
In 2013, MBCs grew Spanish-speaking households 3 percent faster than any other household segment. Further, 78 percent of Amigo protégés improved Spanish-speaking household growth in their market in 2013. As a direct result of pioneering DACA acknowledgments in the industry, reports have shown individual “places of trust” generating more than 10,000 new customer referrals each. Since the inception of the Amigo program, the Hispanic/Latino client population has grown from 4 percent to 6 percent of BB&T’s total client population. MBCs now are growing multicultural households 2.6 times faster than any other household segment.
