Raddon Report

Raddon Report

Thursday, August 3, 2017
Andrew Vahrenkamp

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. 

Thursday, July 27, 2017
Greg Ulankiewicz

After years of sales and lending growth, the auto party looks to be winding down; and the auto arena as a whole appears rife for disruption, with potentially profound implications for financial institutions over the near, mid and long term. 

Wednesday, July 19, 2017
Jane Handel

Although the number of credit unions is steadily declining, assets in both loans and deposits are growing at good rates, suggesting that the industry is still viable.

Tuesday, July 11, 2017
Marcus Rothaar

Small businesses that use community-based financial institutions are typically more loyal – and exhibit higher levels of satisfaction – than those that use larger national banks, according to Raddon Research Insights data. While many small businesses that use community-based institutions are likely to recommend their institution to others, mega-banks still dominate the small business market. Communication of capabilities is one way community banks and credit unions can help boost future market share.

Tuesday, June 27, 2017
Patrick Bator (Retired)

The banking industry continues to look for more precise uses of data to know and better serve consumers. As part of Raddon’s mission to study demographics and consumer behavior patterns, including product usage and spending habits, we regularly look at consumers’ future financial goals.

Thursday, June 8, 2017
Bill Handel

While the election in November and resulting change in administration has been polarizing politically, it has simultaneously triggered a degree of enthusiasm among investors, consumers and small businesses.  This optimism is not seemingly driven by improvement in current economic activity, but instead seems to reflect a sense of greater optimism for the longer term. 

Thursday, June 1, 2017
Marcus Rothaar

Small business optimism entered 2017 at levels not seen in more than a decade.  According to the National Federation of Independent Business’s (NFIB) Small Business Optimism Index, the December 2016 index score of 105.8 was an increase of 7.4 points above the November measurement (the NFIB scores are based on a 1986 average score of 100).  The large jump was driven by significantly more business owners expecting “better business conditions”.

Wednesday, May 17, 2017
Patrick Bator (Retired)

The home equity lending market has been a difficult one since the 2008 housing market correction. It has taken almost a decade for the market to show some signs of resurgence. Now, both lenders and borrowers are more optimistic about offering and using home equity credit products.

Thursday, May 11, 2017
Andrew Vahrenkamp

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. 

Thursday, April 27, 2017
Lynne Cornelison

A Raddon Research Insights recent study, Deposit Growth Strategies in a Rising Rate Environment, explores the unique dynamic with which many financial institutions find themselves challenged; growing deposits in a cost-effective manner without alienating their high-deposit balance households.  In an environment in which consumers are beginning to see an increasing array of options, this challenge is not an easy one.

Thursday, April 13, 2017
Greg Ulankiewicz

In March, Raddon held its quarterly seminars for participants in the Performance Analytics program – formerly known as CEO Strategies Group.  This program provides financial institutions with comprehensive analytics that measure performance across all areas of the organization and helps guide strategic initiatives. 

Thursday, April 6, 2017
Tracy Jenkins

The digital space has evolved greatly since financial institutions first started using the email channel and testing online advertising in the early 2000s. Every year institutions must consider new social channels, allocate their paid online marketing spend to more places, and adapt to changes in Google algorithms that can make or break their websites’ search ranking, all the while seeing mobile views of their marketing campaigns steadily increase.

Thursday, March 30, 2017
Randy Sager

Following the June 2016 Consumer Financial Protection Bureau proposed rule entitled “Payday, Vehicle Title, and Certain High-Cost Installment Loans”, Raddon dug deeper into consumer preferences for small-dollar loan programs.

Thursday, March 23, 2017
Julie Skuturna

The financial services industry is growing at a fast pace even as the number of institutions declines.  Growth has become central to the ability to survive and thrive as economies of scale, due to technology, regulation, and other factors, continue to increase.  For most financial institutions the primary source of growth over the past eight years has been the existing customer base.  We have seen the share of the customer’s wallet grow substantially over the past several years.  This internal focus was critical in an economically challenged environment in which we found ourselves.  The challenge the industry faces today is shifting, however.

Thursday, March 16, 2017
Marcus Rothaar

There are countless examples of digital technology contributing to the demise of businesses that did not evolve their business model fast enough to keep pace with the demands and preferences of the digital consumer. 

Thursday, March 9, 2017
Bill Handel

Welcome to the new home of the Raddon Report! We are excited to announce that Raddon Financial Group has launched a new website and updated its services and research offerings to continue providing the insights credit unions and banks need to thrive. We have also refreshed our brand to Raddon. Raddon remains focused on helping financial institutions gain competitive advantage and achieve growth, providing direction for prospering in the market and meeting consumers' evolving expectations.

Thursday, February 16, 2017
Bill Handel

Here at Raddon, we like to build segmentation schemes.  Splitting large populations into smaller groups helps to improve marketing by allowing institutions to speak to audiences in a more targeted way.

For example, from our previous Strategic Planning Study Group research, we’ve known for a long time that high earners – our Upscale Segment – bank differently than others.  They tend to invest more, are more likely to use major banks, and they are less likely to use debit cards.

Wednesday, February 8, 2017
Bob O'Meara (Retired)

The Federal Reserve’s decision to begin a more consistent upward movement in interest rates is likely to have a significant impact on the deposit portfolios of financial institutions. Back in March, we posted a piece about the accumulation of liquid deposit dollars at financial institutions nationwide. Figure 1 shows that consumers have added $5 trillion to checking, savings, and money market accounts since 2008. Raddon Research Insights asked consumers about these savings accumulations and what type of interest rates it will take to start the flow of funds out of these accounts.

Thursday, January 26, 2017
Bill Handel

As we had surmised in our predictions for  2016 article,  2016 did indeed turn out to be an interesting year in many ways – with nothing more interesting than November’s election results.  So how did we fare in our predictions for 2016? This article will take a quick look back at last year’s predictions to assess the accuracy of our crystal ball.

Tuesday, January 10, 2017
Bill Handel

What a difference a couple of months can make.  In the aftermath of the election, we have seen the stock market accelerate, consumer confidence soar, and small businesses assume a much greater level of optimism.  We have seen the Fed announce a significant change in its interest rate policy.  Due largely to December sales volume, 2016 was the single biggest year in new auto sales history.  In general, we are experiencing a sense of optimism we haven’t seen in nearly a decade.