Raddon Report

Raddon Report

tiffany.nunez
Tuesday, April 28, 2020
Bill Handel

Although there are differing opinions and predictions about the long-term effects of COVID-19 on the economy, there is one undeniable truth: Right now, the consumer is in quite a state of concern. The focus and actions of financial institutions over the next several months – and perhaps longer – will be critical to our economic recovery process.

tiffany.nunez
Thursday, April 9, 2020
Marcus Rothaar

As many small businesses struggle to navigate the COVID-19 pandemic, financial institutions have an opportunity to step in and extend a lifeline to small business owners, many of whom are relying on their financial institutions to provide resources, insight and stability.

By proactively reaching out to small business owners, instituting provisions to provide them relief, and connecting them with local, state and federal programs, financial institutions can make a meaningful difference now and create long-term loyalty among small business accountholders.

tiffany.nunez
Tuesday, March 31, 2020
Bill Jordan

As America adapts to upended social and professional norms due to COVID-19, many are anxious about a multitude of things, including their financial well-being. This is an opportunity for financial institutions to build trust, by reassuring customers, clients and members that their institution is both financially sound and ready to assist them in their day-to-day lives. 

Thursday, March 5, 2020
Bill Handel

2019 turned out to be a year of solid if not spectacular economic growth coupled with continuing challenges for our industry.  Earnings were stronger for many financial institutions even in the face of flat or even declining margins.  Loan loss experience was at historically low levels for many institutions, while others were beginning to see slight upticks in this area.  Challenges to non-interest income continue to be apparent as the younger generations find less value in historically strong contributors such as overdraft protection programs. 

Thursday, February 20, 2020
Marcus Rothaar

When the Great Recession ended in June 2009, financial institutions and the consumers they serve were eager for brighter days, after living through a period of staggering unemployment, unprecedented decline in real estate values, record levels of foreclosures, and an implosion of automobile sales. While there have been 11 recessions since the end of World War II in 1945, none impacted the consumer or financial institutions as significantly as the 2007-08 financial crisis.

Thursday, February 6, 2020
Bill Handel

How did we do in our industry predictions for 2019?  Here are the predictions we offered up one year ago, along with an assessment of our foresight. Overall, our crystal ball was good, but with a few notable exceptions, which were due to the Federal Reserve’s reversal of its interest rate course.

Thursday, January 30, 2020
Bill Handel

One thing is certain: uncertainty

For credit unions, a major theme in 2020 will be how well they contend with uncertainty.

Ambiguity and insecurity will come from an evolving economic environment, emerging demographic concerns and nontraditional providers' entry into key product areas, including checking accounts by Google and credit cards from Apple. Contending effectively with uncertainty will become the hallmark of well-managed credit unions.

Here are three trends we're watching for credit unions:

Thursday, October 3, 2019
Bill Handel

By now, you’ve likely heard discussion of a possible oncoming economic recession. The talk of an inverted yield curve and its predictive ability regarding recessions has been bandied about in the financial as well as the mainstream press.

Is a recession likely? The answer is an unqualified yes. But then again, the answer to that question is always yes. The real question is when it will come. And a related question is how severe it will be.

Thursday, September 12, 2019
Andrew Vahrenkamp

It’s that time of year! Time to prepare for next year and to plan for the annual Raddon Conference, held in Chicago on November 4th to 6th. Given all the uncertainty about the economy and rate environment, we hope to shine a light on the way forward for you. Here are five big strategic questions for us to answer as we plan for 2020:

Wednesday, August 21, 2019
Marcus Rothaar

Each year, Raddon brings together many of the industry’s top leaders and visionaries to our invitation-only CEO Forum. This year’s event took place earlier this month in Dana Point, California, with more than 75 executives collaborating for two days of engaging and interactive discussions with their peers. Join us as we reflect back on some of the key takeaways from the 2019 Raddon CEO Forum.

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, 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.

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 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.

Thursday, August 2, 2018
Bill Handel

The release last week by the Commerce Department that GDP grew at an annualized rate of 4.1% in the second quarter was notable for several reasons.  First, as widely noted, this was the strongest economic growth seen since 2014.  Second, both consumer spending and business investment remained strong, with non-residential fixed investment up 7.3%.  Perhaps most symbolically, the U.S. is now at $20 trillion in annualized GDP. 

Thursday, February 8, 2018
Bill Handel

Early in 2017 we compiled our predictions for the upcoming year.  These were a mix of economic and industry predictions.  How accurate were these predictions? 
As it turns out, we were mostly on the mark in our predictions, at least in terms of direction if not always in magnitude.  Here is a review of our 2017 predictions and an assessment of the accuracy of each.

Thursday, January 25, 2018
Greg Ulankiewicz

In December, Raddon held its quarterly seminars for participants in the Performance Analytics program.  This program provides financial institutions with comprehensive analytics and peer benchmarks that measure performance across all areas of the organization and helps guide strategic initiatives.  The workshops facilitate a review of the latest research findings and offer a platform for discussing how financial institutions can respond to the challenges they face today.

Thursday, January 11, 2018
Bill Handel

2017 proved to be a good year for the U.S. from an economic perspective and for the financial industry as well, with new record highs achieved in the stock market, much stronger GDP growth - especially in the second and third quarters, and continued improvement in real estate sales and values.  The industry showed continued improvement in earnings and also continued strong loan growth. 

Thursday, November 16, 2017
Bill Handel

Raddon held its first-ever national research conference in Chicago November 6-8.  The three day event was attended by over 250 C-level and marketing professionals from banks and credit unions across the United States, and the content featured Raddon’s own proprietary national consumer and small business research as well as several very informative keynote speakers and panelists.