Fall 2007 Research Issues

New Research Highlights
Key Financial Trends & Competitive Update
Market Segmentation
Delivery Channels
Online Banking
Checking Accounts
Deposit and Investment Services
Loan and Mortgage Products
Small Business

• What is the relationship between satisfaction, loyalty and likelihood to recommend?

• In light of dropping direct mail response rates, how should financial institutions react?  Do different types of media reach different consumer groups?

• What level of financial impact can be attributed to rewards programs?

• Would consumers find value in an online switch kit?  What difficulty level do consumers place on changing a primary checking account?

• How prepared are consumers for their retirement funding needs?  What are the opportunities for financial institutions in this emerging area?

SPSG sets the stage by reviewing key economic statistics affecting the marketing of financial services.  Competitive information from a variety of sources concerning the most recent marketing strategies and tactics being employed nationally will be examined.  Following this introduction, consumer responses to questions in the following areas will be explored. 

• How do deposit, loan and investment product usage and product balances differ among RFG’s six consumer segments?  Based on current product ownership, which additional products are consumers most likely to purchase? 

• How can we use profile differences to better target the needs of three key lifestyle segments: loyalty conscious, price conscious and technology conscious? 

• How many and what types of financial institutions do consumers use?  How has this number changed over the past ten years? 

• What influences cause a consumer to designate one institution as their primary provider?  What percent of consumers do not consider any institution to be their primary provider?  What reasons do consumers give for not choosing to have a primary financial provider?

• What is the demand for deposit, loan and investment products among Consumer Segments? 

• What is the share of wallet advantage for being a consumer’s primary financial institution?  Has this share increased, decreased or stayed the same over the past five years?

• In a world of tradeoffs, when choosing a new savings account comparing different combinations of attributes, what relative values do consumers place on Balance Requirements (none to $10,000), Interest Rates (4.5% to 5.5%), and type of institution offering the account (consumer’s own PFI, a local institution with branches or a non-local/Internet institution)?

• Are Internet only savings accounts growing?  What competitive interest rate would cause consumers to move their savings from a traditional financial institution to an Internet only bank?

• In the next two years, how prevalent will retirement plan payouts be?  Into which type of financial institution do these consumers plan to roll their retirement funds?  Are these institutions with which they currently have other accounts?
   

• What plans do consumers have for the direction of their retirement plans (self-directed vs. professional guidance)?  What level of interest do consumers have for Wealth Management or Private Banking units for their retirement?  How well have consumers prepared for their retirement?

• What is the current demand for loan products among Consumer Segments? 

• What loan/line product features are consumers looking for when choosing a lending institution for an equity product?  What features do equity product owners have on their equity product?

• What reasons do consumers cite for having selected the lender for their current mortgage?

• What relationship did consumers have with the lending institution prior to opening an equity product?  What initiates equity product use, do consumers begin a product search on their own, or respond to promotions or advertisements?

• How do consumers believe a rising rate environment would affect their adjustable rate mortgage?
   

• How interested are consumers in a reverse mortgage (for themselves or for parents/relatives)?  If used, how would consumers be likely to use the funds received from reverse mortgage payouts?

• What practical suggestions can financial institutions implement to increase the likelihood of success in the small business arena?

• Which small businesses are the best to target to generate deposits and loans?
   

• What type of simple segmentation scheme could assist in targeting the small business market?