Retail Profit Management (RPM)
Emerging Markets

Emerging Markets are growing in number and increasing in affluence. The Census Bureau projects that the combined buying power of Blacks, Latinos, Asians, and Native Americans will increase over 40% over the next 5 years. And by 2050, half the total population of the US will be people of color with considerable economic clout.

Reaching these ethnic minorities and low- to moderate-income residents is no longer simply a 20th Century question of fair lending and compliance. It is a 21st Century requirement for growth. As today’s “refi fever”, driven by historically low interest rates, the baby boomlet, and an overheated residential housing market begins to cool off, emerging markets will become more and more critical.

The potential is great. Currently, about two-thirds of American households are homeowners, but the homeownership rate for minorities is less than half. And a recent Fannie Mae National Housing Survey reveals that among Black and Latino households, about half are likely to purchase a home in the next three years.

But appealing to emerging markets is not just a requirement for future home-related lending. Anticipating and meeting the home-buying needs of emerging market customers sets the stage for developing broader relationship with immense lifetime value, based on transactions, savings, and investing as well as upon lending of all types. Emerging and underserved market customers become customers for life.

RPM Emerging Markets™ is a set of geographic boundaries for use in GIS (Geographic Information Systems) and mapping software. These boundaries showcase minority and low to moderate income neighborhoods throughout the U.S. based on definitions supplied by the Department of Housing and Urban Development (HUD). Among other applications, financial institutions use RPM Emerging Markets™ to:

  • Discover and define which emerging markets they are best-positioned to serve
  • Develop partnerships with realtors in prime position to serve these areas
  • Understand and improve lending activity in emerging market neighborhoods
  • Target those neighborhoods most likely to be or to become homeowner-oriented
  • Network with essential community organizations, such as local churches, youth sports organizations, and boys and girls clubs
  • Manage branch networks for success in Emerging Markets
  • Demonstrate CRA, HMDA and other fair lending compliance
  • Contact RPM today to kick-start your Emerging Markets program.


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