Raddon Report

Raddon Report

Thursday, October 14, 2021
Karen Kislin

Cryptocurrency is changing the way consumers exchange value with each other, and demand is growing. There are thousands of digital currencies available today, and they account for approximately $2.3 trillion in the global crypto market. Many fintechs already accept cryptocurrency transactions. For financial institutions to remain relevant now and in the near future, they must understand the impact cryptocurrency is having on the traditional banking industry and develop a strategy for a sustainable future.

Thursday, October 7, 2021
Caroline Vahrenkamp

By Caroline Vahrenkamp and Lynne Cornelison

The payments landscape is changing dramatically as new channels and entrants are transforming how consumers pay for goods and services. For years, financial institutions have relied on the non-interest income payments generate, and they face the risk of losing that much-needed revenue as margins become increasingly thin.

Thursday, September 30, 2021
Megan Cummins

Since 2016, consumer demand for mortgages has more than doubled, primarily driven by the low-interest rate environment and rising home purchase intentions. In 2016 and 2018, the Raddon Research Insights study, If You Build It, They Will Come, found the number of households planning to purchase a home in the next two years to be 8 percent and 11 percent, respectively. That figure soared to 25 percent in 2020.

Thursday, September 23, 2021
Bill Handel

Eighteen months after the onset of COVID-19, where are we economically in the United States? And how are things likely to change moving forward?

The COVID-19 recession was by far the shortest in U.S. history, lasting two months, from February to April 2020. The average length of recessions since World War II has been 11 months, and the Great Recession of 2007–2009 was 18 months. However, this recession’s brevity does not imply that it was modest. In fact, the peak unemployment rate was higher than it’s been since the Great Depression in the 1930s.

Thursday, September 16, 2021
Jenny Armistead

For over a decade, many financial institutions have struggled with attracting and engaging younger consumers. As older millennials (those born in the 1980s) are now heading into their 40s and the transfer of wealth is starting to take place, it is becoming critical for the future growth and sustainability of financial institutions to explore creative ways to engage this lucrative group.

Thursday, August 26, 2021
Megan Cummins

Out of all the products that a financial institution offers, credit cards are the most unique and challenging to design because they have dual functionality. For some, credit cards are a way to borrow. For others, they’re a way to make payments.

As we look at trends in consumer credit card usage and data from the Raddon Performance Analytics program, we find commonalities among financial institutions with the highest credit card household penetration and balance growth. What are these institutions doing that makes them top credit card performers?

Thursday, August 19, 2021
Lynne Cornelison

By Lynne Cornelison and Karen Kislin

Gen Z and millennials are becoming more detached from the notion that their primary financial institution (PFI) is simply where their most active checking account resides. Understanding the factors these generations use in selecting a PFI will enable financial institutions to deepen relationships and loyalty with these younger consumers.

Thursday, August 12, 2021
Karen Kislin

The topic of labor shortages continues to headline my newsfeed. Even though the U.S. added significantly more jobs in June, more of the workforce is quitting, adding to the shortages. While these shortages appear to be impacting the hospitality and food and beverage industries the most, they are not uncommon to financial services.

Thursday, August 5, 2021
Marcus Rothaar

Revenue generated from overdraft fees has been on a steady decline for the past decade, driven by changes in consumer behavior combined with political and regulatory pressures. There’s been a recent surge in changes to overdraft programs from many financial institutions, and banks and credit unions need to consider how much of an impact these market changes might have on the organization and business model.

Thursday, July 29, 2021
Marcy Scanlin

Financial institutions face constant cybersecurity threats in the form of account takeovers and ransomware attacks, according to Rick Van Luvender, vice president, Global Security Services, Fiserv.

Thursday, July 22, 2021
Megan Cummins

As more consumers – especially millennials – grapple with managing their finances, the opportunity is ripe for financial institutions to offer financial literacy programs and build loyalty among accountholders.

Thursday, July 1, 2021
Helen Acke McComiskey

As the world emerges from the pandemic, financial institutions are realizing that some consumers are less than satisfied with their overall experience over the past 12 to 18 months. In new analysis of relationship surveys Raddon completed for dozens of institutions, it’s clear that accountholder perceptions of their experience have been declining for some time, but the pandemic accelerated that decline.

Thursday, June 17, 2021
Jody De Valk

Around the end of the first quarter 2019, Apple announced its second entry into the financial services space: the Apple Card.

It promoted this credit card in true Apple fashion, and the world took notice. The promotional video that accompanied both the announcement and subsequent rollout of the card later in 2019 was viewed by millions on YouTube, creating serious buzz in the financial services world.

Thursday, June 3, 2021
Caroline Vahrenkamp

The pandemic and its accompanying economic fluctuations have upended how consumers bank, impacting not only their behavior but also their expectations. Too many financial institutions are assuming their accountholders are the exception. They aren’t. Just ask them.

Thursday, May 27, 2021
Karen Kislin

Most financial institutions are focused on growth over the next 18 months; attracting new customers or members and especially growing loan balances in order to succeed with significant margin compression. To meet these goals, organizations must have an engaged workforce.

Thursday, May 20, 2021
Marcy Scanlin

By: Marcy Scanlin and Caroline Vahrenkamp

With 46 percent of consumers anticipating applying for a loan this year, it’s more important than ever to get your share of the market before it cools. In lending, timing is everything: Knowing who is in the market for what NOW is how financial institutions gain, preserve and recapture the share that is increasingly going to the largest banks and virtual lenders.

To be in the right place at the right time with the right offer, your lending department needs to know:

Thursday, May 13, 2021
Marcus Rothaar

Minority-owned businesses have been disproportionately impacted by the COVID-19 pandemic, with higher rates of business closures and slower rates of recovery. At the onset of the pandemic, research from Robert Fairlie at the University of California, Santa Cruz estimated the number of active small business owners dropped by 22 percent between February and April 2020. Black-owned businesses were impacted most severely, with a 41 percent drop.

Thursday, May 6, 2021
Helen Acke McComiskey

In previous Raddon Report posts we addressed the characteristics of profitable and unprofitable accountholders and ideas for growing relationships with both.  Our most recent Raddon Report provided several tactics for turning unprofitable households into profitable ones, and now we’ll share a case study that shows those tactics in action.

Thursday, April 15, 2021
Becky Summers

I have heard many financial institution executives say that 2021 is the “year of the card” when it comes to loan strategies, and consumer demand appears to be supporting that approach. But to deliver on loan strategies that involve credit cards, financial institutions must be willing to look at credit card offers at all levels.

Thursday, April 8, 2021
Megan Cummins

By:  Megan Cummins and Jan Trifts

In a recent Raddon Report article, Characteristics of Your Most Profitable Households, we discussed the importance of understanding what makes an accountholder profitable. In this report, we’ll discuss the characteristics of your unprofitable households and provide strategies for engaging them.