Raddon Report

Raddon Report

Wednesday, May 22, 2019
Andrew Vahrenkamp

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.

Thursday, May 2, 2019
Marcus Rothaar

Raddon recently hit the road for a series of workshops with participants in our Performance Analytics program. We hosted sessions in 17 cities east of the Mississippi, meeting with over 500 financial services executives along the way. (Note: We’ll be visiting the western half of the country in June; registration is now open for those sessions.)

Thursday, April 18, 2019
Andrew Vahrenkamp

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.”

Thursday, April 4, 2019
Andrew Vahrenkamp

Every year, Raddon conducts nationwide research of consumers and small businesses to understand their motivations, preferences and behaviors in banking. We include our discoveries in four comprehensive reports: Deposit Insights, Lending Insights, Payments and Channels Insights and Small Business Insights. Subscribers to the Raddon Research Insights program receive these four studies as well as an invitation to a webinar giving highlights and strategic recommendations.

Thursday, March 21, 2019
Rebecca Oeltjenbruns

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.

Thursday, February 28, 2019
Bill Handel

2018 was a good year for the economy generally and for the financial services industry.  We experienced reasonably good GDP growth, especially in the second and third quarters, and we spent the entire year at an unemployment rate of 4% or lower.  In the financial services sector, loan growth continued at a strong pace, to the point that many financial institutions are facing liquidity concerns and for the first time in over a decade are engaged in deposit wars.  Earnings also improved for the majority of financial institutions, a result of improving net interest margins helped by four rate

Thursday, February 7, 2019
Bill Handel

Every year Raddon publishes our set of predictions for the upcoming year.  Many publications offer predictions.  However, we also review the accuracy of our predictions one year later, which makes us somewhat unique in the realm of prognostication. 

Here are the predictions we offered up one year ago, along with an assessment of our foresight. Overall, our crystal ball was fairly clear.

Tuesday, January 8, 2019
Jan Trifts

One last time! Following the positive feedback from so many Raddon Report readers on my previous deposit-retention recommendations, I have created a final list of tactics and strategies. I trust you will find value in these ideas as well.

Thursday, December 20, 2018
Bill Handel

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.

Thursday, December 13, 2018
Andrew Vahrenkamp

It’s not a Raddon Conference unless data is on the agenda, and the keynote sessions of this conference highlighted the opportunity effective data management can provide. Here are seven key takeaways for financial institutions about big data, artificial intelligence (AI) and machine learning.

Thursday, December 6, 2018
Andrew Vahrenkamp

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.

Wednesday, November 28, 2018
Jan Trifts

So many Raddon Report readers appreciated and shared my previous list of steps to retain deposits that I have created a new list of seven tactics and strategies. I hope you will find value in these ideas as well.

Tuesday, November 20, 2018
Andrew Vahrenkamp
Millennials should be the best borrowers for banks and credit unions, yet student loans are crippling their ability to borrow. Andrew Vahrenkamp from Raddon walks through what financial institutions can do to help boost this crucial borrowing segment.
Thursday, November 15, 2018
Greg Ulankiewicz

November 24 is Small Business Saturday, so now is a good time to recognize the vital force of small businesses for our nation’s economy. Defined by the Small Business Administration (SBA) as having fewer than 500 paid employees, U.S. small businesses employ almost half (48 percent) of the civilian population. These 5.9 million non-sole-proprietorships also are responsible for 41 cents of every dollar earned by American workers. In essence, 40 percent of consumer spending power is a function of small business employment.

Thursday, October 25, 2018
Becky Summers

From 2009 through 2015, anticipated loan demand was on the decline, bottoming out at 19 percent. Since then, the demand has increased sharply. In 2017, 28 percent of consumers reported they anticipated opening a new loan in the next 12 months. Although demand for loans was down slightly in 2018 to 24 percent, it will remain high in the next 12 months. Financial institutions just need to know where to look for it.

Thursday, October 18, 2018
Karen Kislin

A sample of mission statements from banks and credit unions – describing what they are doing today, what their reason is for existing – would reveal some consistent themes. You’d see phrases like “committed to improving the quality of life of the communities we serve,” “helping customers succeed financially” or “delivering superior returns for our employees, customers and shareholders.”

Thursday, October 11, 2018
Jan Trifts

A major topic of conversation at the September 2018 Performance Analytics workshops was the need for financial institutions to focus on deposit retention. Loan growth (9.9 percent) continues to outpace deposit growth (5.8 percent) as loan-to-deposit ratios increase. The average loan-to-deposit ratio is now in the mid-80s (a number of financial institutions exceed 100 percent).

Thursday, October 4, 2018
Fabio Biasella

This is the second in a series of articles describing the latest trends and key questions that often arise during the planning sessions we conduct with community financial institution boards and executive teams.

Perhaps the newest concept to emerge forcefully over the past planning cycle is “Data as a Strategy”. 

Thursday, September 27, 2018
Julie Skuturna

Everyone appreciates a good recommendation.  Whether it’s a restaurant, a housekeeper or someone to help you with financing your home, we value a referral from a family member or friend.  Advocacy, defined as support or recommendation for a certain cause, can be such a powerful tool: it can not only get the word out about your business, but can also boost the overall financial performance of your organization.

Thursday, September 20, 2018
Becky Summers

Raddon research indicates that for customers who are highly-loyal, the attributes associated with the customer experience that are differentiating are those that involve interacting with employees.  The data suggest that these attributes, including employee skill, understanding of products and services, politeness/friendliness, understanding  issues, accuracy and approachability, are all contributing factors to the strong relationship with the highly-loyal segment.