1 Liza Etienne Helping U.S. Hispanics Participate in 401(k)s

2 Wells Fargo Sales Process 401(k) clients are employers  Decision makers include HR, CEOs and CFOs  Mid-sized market employers in all major industries Sales Representatives  Develop new business leads and close the sale  Hand-off the client to a Relationship Manager Relationship Managers  Serve as one point of contact for the client  Cross-sell additional products and services

3 U.S. Hispanic Market: Retirement Needs Received 401(k) information from employer  Hispanics 30%  All workers 47% Saved for retirement  Hispanics 50%  All workers 71% Source: Elda Macias, personal communication, January 2004.

4 U.S. Hispanic Market: Size The U.S. has the second largest Hispanic population in the world  2004: 43.5 million  2050: million or almost 1/3 of the total U.S. population U.S. Hispanics are in every industry  The percentage of Hispanics per industry ranges from 9% to 20%  The top industries are agriculture, construction and hospitality

5 Wells Fargo Spanish 401(k) Services Enrollment kits Access brochure Benefits helpline Newsletters General articles Face-to-face meetings

6 Wells Fargo’s Solution We knew that:  We are the market leaders for Spanish 401(k) services  We only produce (k) client kits in Spanish compared to 500 in English We didn’t know:  Whether the barrier was internal or external

7 Wells Fargo’s Solution We surveyed:  298 relationship managers and 25 sales representatives across the U.S. via  24% of relationship managers and 52% of sales representatives responded

8 Research Question Does Wells Fargo effectively market information about Spanish 401(k) services to employers?

9 Survey Results: Are We Actively Selling the Services? Did you include information on Spanish 401(k) services to new or existing customers? 70% 60% 50% 40% 30% 20% 10% 0 Sales Sometimes Always 69% Relationship Managers 31% Never 35% 40% 25%

10 Survey Results: Why Aren’t We Selling the Service? If you did not include information on Spanish 401(k) services to new or existing customers, why did you not do so?  Wells Fargo does not offer the entire 401(k) process in Spanish  My clients don’t need the service  Most of my clients don’t have Hispanic employees  I only include it if my client requests it  I didn’t know we offered the service  Wells Fargo does not support the service

11 Survey Results: Do Our Team Members Understand U.S. Hispanics? Do the majority of U.S. Hispanics use investments to plan for their retirement? Correct answer: NO Sales Yes Don’t know Relationship Managers No 62% 8% 31% 49% 70% 60% 50% 40% 30% 20% 10% 0 36% 17%

12 Survey Results: Do Our Team Members Understand 401(k) Industry Regulations? Can an illegal immigrant participate in a 401(k)? Correct answer: NO 70% 60% 50% 40% 30% 20% 10% 0 Sales Yes Don’t know Relationship Managers No 58% 69% 23% 8% 26% 17%

13 Research Question Does Wells Fargo effectively market information about Spanish 401(k) services to employers? Answer: NO

14 Recommendations Translate internet, confirmation letters and statements Institute system enhancements to track Spanish 401(k) sales results

15 Questions Helping U.S. Hispanics participate in 401(k)s