Raddon Report

It is difficult, if not impossible, to serve customers in any industry without understanding how they view your company, products and service. The customer experience (or member experience for the credit union industry) is paramount for ensuring repeat business, and as we know from our Performance Analytics program, institutions that get repeat business are most likely to be high performers.

Are you looking for deposits in all the wrong places? In today’s challenging funding climate, most institutions are looking to maintain and grow deposits to help them manage the cost of funds in a rising rate environment.

Marketers and product managers at financial institutions know that a product’s features and benefits can make or break that product. As a result, institutions spend significant time and energy measuring their products’ fit in the competitive landscape.

Recently, Kroger made big news by refusing to accept Visa credit cards at some of their stores in western states. “Visa has been misusing its position and charging retailers excessive fees for a long time,” said Mike Schlotman, Kroger’s executive vice president and CFO. “Visa’s credit card fees are higher than any other credit card brand that we accept. Visa’s excessive fees and unfairness cannot continue to go unchecked.”

Helen Bevan, CEO of England’s National Health Service, was asked recently about the challenge of preserving gains from one initiative while launching new efforts. She said, “Leaders must make sense of these things.” In a world of constant change for organizations, it’s hard to sustain focus on one initiative when competing interests are always on the horizon.

Many banks and credit unions rely on indirect vehicle lending as a sizeable component of their earning asset mix. However, pressure from a variety of sources should make institutions reconsider its role in that mix.

In our recent study for Raddon Research Insights, “Self-Drive My Car: Buying and Financing in an Uber World,” we look at ways technology is influencing consumers’ behavior in buying and financing vehicles. The trends are not positive for lenders.

A significant factor in building an institution’s brand is the culture generated by its employees. Managing employees was a key element in several popular breakout sessions at this year’s Raddon Conference. Here are six key takeaways on the topic.

In a not unexpected development, the Federal Reserve raised short term interest rates again at its Wednesday meeting this week.  This is the ninth rate hike since December 2015, and the fourth in 2018.  At the meeting, the Federal Reserve also indicated that the pace of rate increases is likely to slow in 2019.  What this means exactly is not certain, but the likelihood of four or even three rate increases in 2019 is not high.  In fact, 11 of 17 officials expect no more than two rate increases next year.

What a Conference!

Another Raddon conference is in the books, and what an event it was! So many factors came together to make it exceptional – insightful keynote speakers, engaging breakout sessions, Raddon Rocket cocktails, reasonably good Chicago weather – that everyone involved had a blast.

If you didn’t make it this year, be sure to plan for next year’s event. In the meantime, here are seven key takeaways from the 2018 conference about the industry and the economy.