Andrew Vahrenkamp is responsible for Raddon Research Insights, Raddon’s national consumer research program. A former finance and marketing executive in the credit union industry, he uses his 20 years of experience to find trends and patterns in consumer behavior and to develop solutions for institutions, particularly in their strategic planning, product development, and marketing strategy.
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.
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.
Community banks and credit unions have done poorly in attracting Hispanic customers. Andrew Vahrenkamp from Raddon, explains why and offers some possible ways to build relationships with this strong and growing market segment.
We are approaching strategic planning season again, and the competitive environment has not simplified for most financial institutions. This business never seems to get easier, does it? As institutions try to balance growth and profitability, here are five big questions to consider. To get our full insights in each of these areas and much more, consider attending our second annual Raddon Conference this November 5-7 in Chicago!
Market economics suggest that the price of a good or service is linked to where supply meets demand. When demand for a good goes up, the price can go up; the reverse is true as well. That’s why customer loyalty is so important to your long-term success. When your loyalty falls, you must either lower your loan rates or raise your deposit rates to compensate for that reduced demand.
Eighteen months ago, we launched our new Raddon Research Insights program with a study entitled “Has the American Dream for Millennials Been Shattered?”
Free checking is dying. Banks are reducing their branch networks, with 93% of the closures occurring in zip codes with below-average incomes. Transitioning to digital channels is leaving those Americans without access to technology behind. As we noted last year,
Interchange makes up nearly half of all non-interest income for institutions in Raddon analyses, but P2P and other payments disruptors threaten that revenue stream. Andrew Vahrenkamp, Senior Research Analyst at Raddon, asks why most banks do not have a strategy to meet this threat.
The financial press has been fairly outspoken about rising rates. Given the Fed’s persistence in raising the Fed Funds rate, we should expect this level of reporting, but has that concept filtered down to the American public?
The Federal Reserve has raised the Fed Funds rates multiple times over the past two years. Banks and credit unions have so far resisted raising their deposit rates to match, but are consumers eagerly paying attention, waiting for those rates to shoot up?
Recent years have seen an explosion in new digital payment methods and delivery channels. But are these new mechanisms replacing or merely supporting existing consumer behavior and preferences?
In Raddon’s recent study, Payments Insights: Rise of the Digital Pioneers, we find that consumers are increasingly engaged in payments technology, and more importantly, technology is driving some consumers to look away from traditional banking players.
Declining overdraft income makes lower income households challenging to serve profitably. Andrew Vahrenkamp, Senior Research Analyst at Raddon, gives some ideas on how to serve these consumers effectively and efficiently.
At Raddon, we often state that age and income are the best predictors for how a household will consume financial services. Where someone is in their life determines whether they are a young borrower or an older saver, better than their generation does. After all, Baby Boomers might be depositors looking for retirement now, but forty years ago, they were the ne’er-do-well young borrowers discoing on Saturday Night Fever.
While conventional wisdom seems to suggest that mobile banking will finally end the need for brick-and-mortar locations, our latest Raddon research suggests otherwise. Andrew Vahrenkamp explains why.
Many financial institutions are starting to think about future growth in their strategic planning. As they consider growth opportunities, five big questions have come to the fore. We’ll look at each in turn, but to get all the insights, you’ll have to come to our inaugural Raddon Research Conference this November!
The ubiquity of Internet-capable mobile devices and the evolution of this technology in the banking realm present new challenges and opportunities for financial institutions. As financial institutions continue to make significant investment in mobile banking technology, the industry’s primary imperatives are twofold: Growth and retention.
On a regular basis, experts of all sorts take to the media to chastise “the kids” for being immature and frivolous. To hear them tell it, Millennials are destroying the very fabric of civilization. When not mocking them for participation ribbons (of which, as a Gen X kid, I have a vast collection), the experts are blaming Millennials for not saving enough, for spending uncontrollably, and for not adequately considering their future.
Eighty-four percent (84%) of American consumers own some type of credit card, according to our latest Raddon Research Insights study (Lending Insights: Promoting Growth in a Challenging Lending Environment). It is the only loan product, besides student loans, that has not seen diminished usage since the Great Recession.
