Raddon Report

Raddon Report

Thursday, November 4, 2021
Karen Kislin

By Karen Kislin and James White

Cryptocurrency is gaining momentum, especially with younger generations, and financial institutions must consider how to move forward with this decentralized digital currency to remain relevant with consumers. While the very nature of cryptocurrency is in its decentralized blockchain technology, regulated and federally insured financial institutions need to explore the opportunity of supporting their accountholder interests while minimizing overall risk.

Thursday, October 28, 2021
Lynne Cornelison

By Lynne Cornelison and Caroline Vahrenkamp

The pandemic has altered U.S. consumers’ behavior in countless ways, and banking behavior is just one of them. Branch staff have not been replaced by interactive teller machines (ITMs) or purely digital resources. Consumers want access to staff – now more than ever. Understanding how different generations view and want to engage with branch staff will enable financial institutions to meet service needs and expand relationships across their client base.

Thursday, October 21, 2021
Jan Trifts

By Jan Trifts and Helen Acke-McComiskey

Wildfires, hurricanes, floods, tornadoes and earthquakes – 2020 set a record of 22 separate billion-dollar weather and climate disasters across the United States, costing $98.9 billion, according to the National Oceanic and Atmospheric Administration (NOAA).

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 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 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 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 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 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.

Thursday, April 1, 2021
Jan Trifts

In a recent Raddon Report article, Understanding the Profitability of Accountholders, we discussed how the pandemic and its accompanying economic slowdown have compressed margins at banks and credit unions, putting pressure on earnings. We stressed the importance of understanding what makes an accountholder profitable. In this report, learn how to identify and retain your most profitable retail accountholders, focusing on the top two performing groups – the A and B retail households.

Thursday, March 18, 2021
Caroline Vahrenkamp

The 2020s look to be a challenging environment for financial institutions. Here are five strategic takeaways from the 2021 Raddon Conference to help banks and credit unions navigate a path to prosperity.

Thursday, February 25, 2021
Bill Handel

A year containing a pandemic is, generally speaking, not a great year to have made predictions. In this review of the predictions we made for 2020 in January of last year, we will eat some crow. However, many of the things we thought might happen did, in fact, turn out to be the case. 2020 was a wild and woolly year, but on balance we were surprisingly prescient. However, we did miss clearly on the start and the magnitude of the recession.

Here are the predictions made last year and an assessment of each’s accuracy.

Prediction 1: What we said: