Spring 2009 Research Issues

New Research Highlights
Key Financial Trends & Competitive Update
The Economy's Impact on Consumer Behavior
The Evolving Financial Services Industry
Delivery Channels & Online Banking
Deposit, Investment & Insurance Products
Lending & Equity Products

• How has the economy changed consumer attitudes and behaviors toward spending, saving, borrowing and investing?

• How do people feel about the Big Four financial institutions and what does this mean for other institutions?

• What is the personal financial impact of property and 401(k) value declines, foreclosures, job loss, etc.?

• What is the minimum rate differential required to lure a depositor from one institution to another, and does this rate differ by account type?

• Do expedited online bill payments offer fee income potential?

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. 

• In what ways have economic conditions altered consumer behavior? Will consumers use 2009 stimulus rebate checks in the same or different ways in which they used their 2008 funds – and what can that tell us?

• How many households’ personal financial situations have been impacted by events like 401(k) value decline, property value decline, foreclosure, job loss, etc.?

• How long do consumers feel the current economic downturn will last? Have economic and financial market conditions in the last 18 months truly changed attitudes and behaviors toward spending, savings, borrowing, and investing?

• How do deposit, loan and investment product usage and 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?

• Which type of financial institution would these eleven consumer segments be most likely to use to meet specific credit needs (mortgage, vehicle loan, equity loan, credit card, student loan)?

• What’s the current status of checking accounts originally opened to qualify for a special rate?

• Will consumers commit to term, and at what rate, or is liquidity king? What is the minimum rate increase required to lure a depositor from one institution to another? Does this rate lure differ for different types of accounts?

• Would consumers give up basis points on a CD for a Bump-Rate option?

• How many basis points are needed to cause CD holders to move accounts for different CD terms?

• How much higher would the interest rate have to be to coax consumers to move their funds to an Internet-only bank?

• What reasons do consumers give for not using the investment services of a bank, savings institution, or credit union as a source to purchase stocks or mutual funds?

• Compared to the past, have investors changed the ways in which they manage their investments? What sources of information do investors use to make investment decisions? What actions have investors taken in response to the volatile stock market?

• In 2008, who do investors believe came out on top in regard to investment performance: accounts that were self-managed, or accounts that were professionally managed. Going forward, will consumers change the level of professional advice they seek for their personal investments or retirement accounts?

• Has the stock market decline changed consumer attitude about the market itself? Do they plan on re-investing sideline funds? In what type of accounts are they currently keeping cash that they intend to re-invest in the future? What length of a rally do investors believe they will need to return to the market?

• If credit needs were to occur in the future, what financial vehicles would consumers use to meet them?

• What is the level of interest in a checking account that offers a line of credit that allows consumers to borrow money from their next payroll direct deposit to deal with unexpected expenses or credit needs?

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

• How do today’s credit card balances compare with the balances one year ago?

• To what extent have consumers been affected by actions taken by their lending institutions or credit card companies, such as cancelled, reduced or capped lines of credit or credit cards, or increased rates? What is consumer reaction to these actions?

• What type of financial institutions will consumers consider for different types of loan accounts?