Spring 2008 Research Issues

New Research Highlights
Key Financial Trends & Competitive Update
Market Segmentation
Delivery Channels
Online Banking
Checking Products
Deposit, Investment & Insurance Products
Lending & Equity Products
Small Business

• How are consumers reacting to recent market volatility?

• Do consumers want to customize their checking account or credit card features? 

• Upon retirement, how will consumers want to handle their retirement funds?

• Are rewards programs accomplishing their goals?

• How have Internet-only savings accounts grown and what does their future look like?

• How best can you use the Internet to reach consumers with financial product information/marketing?

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 consumers feel about the economy, the interest rate environment, and the upcoming elections? 

• How do deposit, loan and investment product usage and product balances differ among RFG’s eleven mutually exclusive consumer segments?  What is the current demand for deposit, loan and investment products among these consumer segments and which segments are the best targets for individual products? 

• How do the eleven segments differ in the type of media they use to gather financial product information? 

• How do the three key lifestyle segments financial profiles differ (loyalty conscious, price conscious and technology conscious)?  What value propositions will be most effective for different lifestyle segments?

• What is the usage trend for high-yield insured accounts?  At what types of institutions are these accounts held? 

• When CD funds have been withdrawn from one institution, into what type of account(s) have they been placed (recently and in the past)?  What was the rate increase received at the new institution?

• Are Internet-only savings account holders increasing?  Is the number of those who would consider this type of account increasing?  How much higher would the interest rate have to be to lure interested consumers to move their savings from a traditional financial institution to an Internet only bank?

• In light of the volatile stock market, are investors moving to safer portfolio mixes?  How often have they readjusted or re-aligned their non-retirement investments?  How many have portfolios that automatically adjust?  What percent of their portfolio do they currently hold in insured deposit accounts?

• What type of providers are consumers currently using for their non-retirement investments?  Upon retirement would they consider another provider to handle their investments?

• What specific needs drive consumers to seek the assistance of a financial advisor for their retirement planning?

• What are are consumer preferences regarding the direction of their retirement funds (ranging from total self-direction to total professional guidance)?  Will retired consumers who may be dependent upon rolled-over funds for living expenses have the same preference for the direction of their funds?

• Within the next two years, to what extent will anticipated retirement plan payouts be increasing?

• What type of insurance products do consumers own and plan on purchasing in the next 24 months?

• What is the consumer reaction to recent volatility in the stock and financial markets?  Is there a perception of increased difficulty to secure loans, mortgages and refinancing?  How many feel this will affect them? 

• How do consumers feel the current interest rate environment will affect their adjustable rate mortgage (ARM)?

• What type of equity product do consumers most prefer?  Is there interest in a 36 month fixed HELOC?

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

• How interested are consumers in selecting their own credit card features?

• How do small business customers differ in business product/service usage by sales size and type of business?

• How can we best use small business segmentation to increase marketing effectiveness?
   

• What media are small businesses most likely to use in gathering financial product information?