Mindset #12- Rethink stereotypes of demographic segments (Hispanic, Younger, Women, etc.)

As I was sifting through various common stereotypes, I came across an Article with this description of Gen Y: “while not roundly criticized as slackers, "Y" kids are nonetheless characterized as apathetic, lazy and spoiled.” As a member of Gen Y, I would adamantly deny that I fit into this reoccurring stereotype.

The common problem with all stereotypes is that they are based on general perceptions of a segmented group of people and serve to undermine the uniqueness of an individual by classifying people into a specific group.

And there is ALWAYS an exception, and most likely numerous exceptions, to any stereotype.

The Merriam-Webster Dictionary defines a stereotype as “a standardized mental picture that is held in common by members of a group and that represents an oversimplified opinion, prejudiced attitude, or uncritical judgment.” Repeated stereotypes affect the way society views a group and in turn affects the way the group views itself. With enough re-enforcement and repetition, stereotypes can be seen as reality rather than a blanket generalization.

Stereotypes, especially generational ones, such as Gen X, Gen Y and Baby Boomers, often times eliminate certain segments of the population. For example, the media constructed description of the “baby boomer” represents white middle class members of the generation, and ignores the experiences and vastly different lives of other races and socio economic classes.

Many times, stereotypes go beyond classifications of generations and permeate into our perceptions of race. And in these cases the stereotypes can become much more offensive and over simplified.

The stereotypes associated with the Hispanic market, which represents one of the fastest growing segments of the population, greatly impact financial services. More than half of all growth in the financial services sector will come from the expanding Hispanic population. However, this segment of the population is misunderstood, due in large part to repetitive stereotypes. Most of the population growth (75%) will come from 2nd and 3rd generation Hispanics, not illegal immigrants as stereotypes portray. Another common misconception of the Hispanic population is that it is low income. In reality there is large economic diversity, with 32% earning incomes over $50,000 and 14% with incomes greater than $75,000.

It is important to remember that you never know what the person walking into your branch has to offer. A young 20 something, in a T-shirt and jeans, may have $100,000 to invest. And if they are not given the attention, it will turn into a missed opportunity. It is important to understand each individual and identify with their unique life-stage. Instead of viewing a Gen Y person as unmotivated and apathetic, view them as someone looking to eliminate debt, trying to save for a house or invest in a retirement plan. See people not how they look, but rather as an opportunity for you to gain a loyal customer.

Stereotypes simplify groups of people to fit into neat categories and in doing so they deprive everyone of their individuality. No matter the stereotype based on sex, age, or race, each customer is first and foremost an individual, with specific needs and a unique financial situation. The more you try to classify people into a specific group, the less you understand them as individuals.