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Hispanic high finance

Sonoran Bank becomes the first Latin-focused bank in Arizona History

Sonoran Bank, Arizona's first Latino-created bank specializing on the needs and growth of Hispanic businesses in the state, is scheduled to open its doors in March. The bank's opening will mark a milestone in the evolution of Latino-guided banks in Arizona, SB officials say.

Jim Vigars, president of Sonoran Bank, says the new bank will open its headquarters and first bank branch at 3877 N. 7th St. in Phoenix.

Vigars, with 34 years banking experience, says that Arizona's first Latino-operated bank will fill a need for Latinos to access business capital. The bank will focus on business loans and commercial real estate loans. The bank's marketing outreach will be done bilingually, he says.

Only seven Hispanic-operated and focused banks opened between 2000 and 2003, according to statistics from the Federal Deposit Insurance Corp. Hispanic-created banks have found fertile ground for start-ups in large Hispanic markets in the U.S., such as the Pan-American Bank of Miami. They have also been started along the U.S.-Mexico border, such as the Bank of El Paso Norte in El Paso, Texas.

The Sonoran Bank concept was created by a diverse board of directors that include Latinos: Ricardo Torres, co-publisher of Latino Perspectives Magazine; Edmundo E. Hidalgo, chief operating officer for Chicanos Por La Causa, Inc.; Luz Sarmina-Gutierrez, president and CEO of Valle del Sol, Inc.; Loui Olivas, professor in the Management Department, ASU W. P. Carey School of Business; Jim Rike of Caliber Construction and Rosa Cantor, President and CEO of Creative Human Resources Concepts, LLC. Non-Latino board members are Lawrence Pearl, founder of Best Buy Group; attorney Guy Roll; Brian Boubek, founder of Cultural Experiences Abroad; and Daniel Laraway, owner of Laraway Financial Group,

Vigars said that the initial bank staff consists of Richard J. Chapin, chief financial officer, and Frank X. Coumides Bermudez, senior lending officer. He adds that Sonoran Bank plans to add three employees -- an operations manager and two tellers -- as part of start-up operations.

Ernest Garfield, a former state senator, state treasurer, and corporation commission member, was hired by the Sonoran Bank's  board of directors to organize the bank. He has helped establish 26 banks.

The new bank faces tough competition. Most major Arizona banks are targeting the fast-growing segment of Hispanic consumers and businesses in Arizona. They see Arizona as one of the top markets for growth.  They already offer Spanish ATM and marketing materials. They accept matricula consular identification and financial wire services to Latin America. They have increased their hires of bilingual tellers and staff.   

Sonoran Bank officials say they believe that the new bank will appeal to Hispanic entrepreneurs because bank services will be tailored directly to them.

Vigars says Sonoran Bank won't exclusively serve only Hispanics. Any businessperson can use the services. However, he adds, the Hispanic market is the new bank's priority, and their outreach efforts will target the bilingual Hispanic business owner.

According to a 2004 Hispanic Business Survey by the ASU W.P. Carey School of Business, 73 percent of Hispanic owners surveyed said that they were running their first business venture. The survey reports 97 percent of Hispanic businesses use banks and other financial institutions. Commercial loans in the average amount of $400,000 was the most popular transaction. 

"If we can do our job right, and attract their loyalty, and show them we are a safe place for them to put their money, and have them trust us in assisting with their business growth, then we have so much more potential in this market than the other banks," Vigars says.