Raddon Report

Raddon Report

Thursday, June 1, 2017
Marcus Rothaar

Small business optimism entered 2017 at levels not seen in more than a decade.  According to the National Federation of Independent Business’s (NFIB) Small Business Optimism Index, the December 2016 index score of 105.8 was an increase of 7.4 points above the November measurement (the NFIB scores are based on a 1986 average score of 100).  The large jump was driven by significantly more business owners expecting “better business conditions”.

Wednesday, May 17, 2017
Patrick Bator

The home equity lending market has been a difficult one since the 2008 housing market correction. It has taken almost a decade for the market to show some signs of resurgence. Now, both lenders and borrowers are more optimistic about offering and using home equity credit products.

Thursday, May 11, 2017
Andrew Vahrenkamp

Eighty-four percent (84%) of American consumers own some type of credit card, according to our latest Raddon Research Insights study (Lending Insights: Promoting Growth in a Challenging Lending Environment).  It is the only loan product, besides student loans, that has not seen diminished usage since the Great Recession. 

Thursday, April 27, 2017
Lynne Cornelison

A Raddon Research Insights recent study, Deposit Growth Strategies in a Rising Rate Environment, explores the unique dynamic with which many financial institutions find themselves challenged; growing deposits in a cost-effective manner without alienating their high-deposit balance households.  In an environment in which consumers are beginning to see an increasing array of options, this challenge is not an easy one.

Thursday, April 13, 2017
Greg Ulankiewicz

In March, Raddon held its quarterly seminars for participants in the Performance Analytics program – formerly known as CEO Strategies Group.  This program provides financial institutions with comprehensive analytics that measure performance across all areas of the organization and helps guide strategic initiatives. 

Thursday, April 6, 2017
Tracy Jenkins

The digital space has evolved greatly since financial institutions first started using the email channel and testing online advertising in the early 2000s. Every year institutions must consider new social channels, allocate their paid online marketing spend to more places, and adapt to changes in Google algorithms that can make or break their websites’ search ranking, all the while seeing mobile views of their marketing campaigns steadily increase.

Thursday, March 30, 2017
Randy Sager

Following the June 2016 Consumer Financial Protection Bureau proposed rule entitled “Payday, Vehicle Title, and Certain High-Cost Installment Loans”, Raddon dug deeper into consumer preferences for small-dollar loan programs.

Thursday, March 23, 2017
Julie Skuturna

The financial services industry is growing at a fast pace even as the number of institutions declines.  Growth has become central to the ability to survive and thrive as economies of scale, due to technology, regulation, and other factors, continue to increase.  For most financial institutions the primary source of growth over the past eight years has been the existing customer base.  We have seen the share of the customer’s wallet grow substantially over the past several years.  This internal focus was critical in an economically challenged environment in which we found ourselves.  The challenge the industry faces today is shifting, however.

Thursday, March 16, 2017
Marcus Rothaar

There are countless examples of digital technology contributing to the demise of businesses that did not evolve their business model fast enough to keep pace with the demands and preferences of the digital consumer. 

Thursday, March 9, 2017
Bill Handel

Welcome to the new home of the Raddon Report! We are excited to announce that Raddon Financial Group has launched a new website and updated its services and research offerings to continue providing the insights credit unions and banks need to thrive. We have also refreshed our brand to Raddon. Raddon remains focused on helping financial institutions gain competitive advantage and achieve growth, providing direction for prospering in the market and meeting consumers' evolving expectations.

Thursday, February 16, 2017
Bill Handel

Here at Raddon, we like to build segmentation schemes.  Splitting large populations into smaller groups helps to improve marketing by allowing institutions to speak to audiences in a more targeted way.

For example, from our previous Strategic Planning Study Group research, we’ve known for a long time that high earners – our Upscale Segment – bank differently than others.  They tend to invest more, are more likely to use major banks, and they are less likely to use debit cards.

Wednesday, February 8, 2017
Bob O'Meara (Retired)

The Federal Reserve’s decision to begin a more consistent upward movement in interest rates is likely to have a significant impact on the deposit portfolios of financial institutions. Back in March, we posted a piece about the accumulation of liquid deposit dollars at financial institutions nationwide. Figure 1 shows that consumers have added $5 trillion to checking, savings, and money market accounts since 2008. Raddon Research Insights asked consumers about these savings accumulations and what type of interest rates it will take to start the flow of funds out of these accounts.

Thursday, January 26, 2017
Bill Handel

As we had surmised in our predictions for  2016 article,  2016 did indeed turn out to be an interesting year in many ways – with nothing more interesting than November’s election results.  So how did we fare in our predictions for 2016? This article will take a quick look back at last year’s predictions to assess the accuracy of our crystal ball.

Tuesday, January 10, 2017
Bill Handel

What a difference a couple of months can make.  In the aftermath of the election, we have seen the stock market accelerate, consumer confidence soar, and small businesses assume a much greater level of optimism.  We have seen the Fed announce a significant change in its interest rate policy.  Due largely to December sales volume, 2016 was the single biggest year in new auto sales history.  In general, we are experiencing a sense of optimism we haven’t seen in nearly a decade.

Thursday, December 15, 2016
Patrick Bator

Despite the growing popularity of online and mobile channels for marketing and sales, the branch remains a preferred sales channel for opening new accounts. A recent Raddon Research Insights study found most consumers still want face-to-face interaction when they purchase highly valued products, such as transaction accounts, savings accounts and investment products.

Wednesday, November 30, 2016
Patrick Bator

Earnings pressure from shrinking net interest margins is compelling financial institutions to explore and cultivate other avenues of noninterest income generation to supplement and sustain their overall earnings. Marketing various wealth management services to customers and noncustomers is one way to earn revenue.

A Raddon Research Insights 2016 study delved into the usage and likelihood of usage of four wealth management services and accounts in order to provide financial institutions some perspective on the size of the wealth management services market.

Thursday, November 17, 2016
Patrick Bator

The Presidential election is finally behind us and we have seen, to this point, that the stock market has responded in a positive fashion, perhaps reflecting a belief that the business environment may be more favorable going forward.  However, we must be cognizant of the underlying consumer mindset as we move into 2017.

Tuesday, November 8, 2016
Eric Wittekiend

When news of one bank’s aggressive sales quotas broke, many said it was an example of a best practice – coaching to the results – gone bad. In truth, any best practice can become a bad practice when done incorrectly.

A Tale of Two Managers

Consider the profile and practices of two manager personas:

Thursday, October 27, 2016
Greg Ulankiewicz

This past June and September, Raddon held its quarterly workshops for participants in its CEO Strategies Group program.  This program provides financial institutions with comprehensive analytics that measure their performance across all areas of the organization and helps guide their strategic initiatives.  The workshops facilitate a review of the latest research findings and offer a platform for discussion on how financial institutions can respond to the challenges they face today.

Thursday, October 13, 2016
Julie Skuturna

Understanding and measuring employee engagement can help your organization function at a higher level. In addition to facilitating camaraderie and teamwork, the benefits to the bottom line can be significant. In a recent study involving 37 financial institutions, Raddon found organizations that exhibited higher levels of employee engagement performed significantly better than those with lower employee engagement.

In the study, financial institutions exhibiting higher levels of employee engagement report: