Raddon Report

Raddon Report

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Thursday, January 21, 2021
Karen Kislin

By Karen Kislin and Jan Trifts, Strategic Advisors

New Year’s Day historically has been a time to reflect on the past year and make promises or resolutions to be better in the new year. Over the past 4,000 years of this tradition, the most common resolutions have consistently focused on health, including exercising more and eating healthier, as well as saving more money to be financially healthier.

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Thursday, January 14, 2021
Bill Handel

It’s good to have 2020 in the rearview mirror.

Raddon will provide more detailed predictions for 2021 in an upcoming Raddon Report, but suffice it to say we don’t work from a crystal ball. For 2020, we did not predict a pandemic, a 31 percent decline in GDP in second quarter and a 33 percent growth figure for GDP in the third quarter. Yes, it’s fair to say we’re all glad to have 2020 behind us.

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Thursday, January 7, 2021
Caroline Vahrenkamp

While we all hope that 2021 is less interesting than 2020 was, there’s no doubt we’ll continue to grapple with challenges and opportunities resulting from the pandemic. As we look to a new year, I consider these the top three issues financial institutions face.

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Thursday, December 17, 2020
Lynne Cornelison

By Lynne Cornelison and Greg Ulankiewicz

For years, “tap-and-pay” cards were a solution looking for a problem. COVID-19 has provided that problem, and contactless cards are finally having their day in the sun. Financial institutions that had not or only partially issued contactless cards prior to the pandemic were suddenly asking themselves: “Do we invest in a rapid rollout of contactless cards to all our accountholders, or will the utility of a more hygienic purchase experience fade among consumers if and when the pandemic is contained?”

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Thursday, December 10, 2020
Megan Cummins

The pandemic and its accompanying economic slowdown have compressed margins at banks and credit unions, putting pressure on earnings. To mitigate this impact, consider understanding how your accountholders contribute to the bottom line.  Are they bringing the necessary value as consumers of your products and services?

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Thursday, December 3, 2020
Caroline Vahrenkamp

The twin storms of the pandemic and the falling rate environment have pushed millennials to seek higher deposit yields. This heightened rate sensitivity causes a dilemma for institutions seeking to retain deposits while managing margins.

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Thursday, November 19, 2020
Jody De Valk

Question: Which credit card offers consumers the best value in terms of travel rewards? Answer: There probably isn’t a “correct” answer, and any answer probably has a lot to do with personal preference. But the question itself is becoming less relevant during the COVID-19 pandemic as travel, in general, and air travel, specifically, has essentially ground to a halt.

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Thursday, November 12, 2020
Marcus Rothaar

In the current pandemic environment, what are the keys to maintaining high performance for your organization? To help answer this question, let’s look at the some of the key characteristics of high-performing financial institutions and which of their traits are most critical right now.

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Thursday, November 5, 2020
Caroline Vahrenkamp

The COVID-19 pandemic has hastened trends that already existed in consumer banking, like the move to mobile. A more ominous shift risks the continued existence of smaller financial institutions.

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Thursday, October 29, 2020
Karen Kislin

The International Monetary Fund (IMF) recently downgraded its global economic growth predictions for 2021 due to the deeper, negative impact COVID-19 has had during the first half of 2020, as well as the slower recovery rate in the second half of this year as previously predicted. In the report, the IMF emphasized how abnormally large the uncertainties surrounding their predictions are due to the lack of clarity regarding the health crisis.

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Thursday, October 22, 2020
Marcus Rothaar

At the typical community-based financial institution, checking account opening volume plummeted more than 200 percent in March and still had not fully recovered by the end of the second quarter of 2020. The slowdown was a reflection of the COVID-19 pandemic putting a pause on many aspects of life in the U.S. As consumers and financial institutions continue to adjust to life during a pandemic, what does “normal” mean for checking accounts in 2020 and beyond?

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Thursday, October 15, 2020
Karen Kislin

It is strategic planning season again, and after the year we’ve had, there’s a lot to think about as financial institutions navigate ways to drive future growth. For many organizations, strategic planning will be conducted virtually in some form or another. Some may have portions of their team in one room, socially distancing and wearing masks, while other team members connect virtually. Other institutions will have everyone dialing in remotely.

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Thursday, October 8, 2020
Caroline Vahrenkamp

The pandemic has not been friendly to financial institutions’ bottom lines, and while some sectors of the economy show improvement, a possible second wave of the virus in the cooler months could worsen financial positions.

But the picture is not entirely bleak. COVID-19 has created an opportunity for banks and credit unions to build a part of their business that may have been something of an afterthought until now: wealth management.

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Thursday, September 24, 2020
Bill Handel

As we move into the fourth quarter of an unforgettable year that many of us would prefer to forget, I’m often asked to provide a prognosis on what economic recovery will look like. Will the recovery of which we are in the beginning phases be shaped like an “L”, like a “V”, like a “W”, like the Nike “swoosh”, or even the newest shape, the letter “K”? First, a review of what these various letters imply for recovery.

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Thursday, September 17, 2020
Becky Summers

The fact that non-financial institution disruptors are competing with banks and credit unions is nothing new. But COVID-19 has put that disruption on a fast track as these companies use their expertise in technology, consumer intimacy, operations and delivery to quickly deliver the financial services consumers want. To stay relevant and compete, financial institutions need to act on the lessons learned during the pandemic.

OpportunityforSmalBusinesses
Thursday, September 10, 2020
Marcy Scanlin

By: Marcy Scanlin, Strategic Advisor, and Jan Trifts, Strategic Advisor

When Benjamin Franklin said, “Out of adversity comes opportunity,” he couldn’t have foreseen how a highly contagious virus could substantially halt the economy in the country he helped found.

Fortunately, banks and credit unions worked alongside businesses to turn the opportunity presented by the federal government’s pandemic-era funding into a lifeline for many employers and their employees.

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Wednesday, September 2, 2020
Greg Ulankiewicz

Effective loan application processes help financial institutions capitalize on a greater share of opportunities for new earning assets. More refined pricing models mitigate risk, faster decisioning lowers costs and discovery of potential product sales contributes to the bottom line.

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Thursday, August 20, 2020
Karen Kislin

Financial institutions navigated significant change in a short time to continue serving consumers during the COVID-19 pandemic. As markets begin opening in varying degrees, financial leaders are thinking about how to sustainably move forward in this new environment. Millennial and Gen Z research suggests the most trusted and authentic brands will survive.

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Thursday, August 13, 2020
Caroline Vahrenkamp

This pandemic has wreaked havoc on the American economy. With unemployment at record levels and no end to the pandemic in sight, one might expect the consumer to be feeling the stress financially. Research from the Pew Research Center shows millennials have been hit particularly hard, as they are overrepresented in industries like hospitality and retail, and they lack the net worth to ride out the lack of income.

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Thursday, August 6, 2020
Marcy Scanlin

Pandemic-forced branch closings and shifting demographics have highlighted and hastened the growing need for financial institutions to leverage market insights for acquisition, growth and retention. As strategic planning season approaches, it’s important to dedicate road maps and resources to reaching your best existing and potential consumers with timely offers through relevant channels.

Building long-term loyalty and high-value brand experiences depends on: