Raddon Report

Raddon conducts a group research study three times a year for approximately 160 financial service organizations that range in assets from $250M to $5B.  At the beginning of each year, the survey is updated to include our standard key metrics as well as new and trending topics.  The first wave of nearly 30,000 responses has been processed and some interesting findings have emerged.

The banking industry has seen its share of challenges over the past decade. Those challenges continue to be significant; especially as it relates to generating revenue. One area in particular is in growing non-interest income, thanks to challenges from the regulatory environment, changing consumer behaviors, and technology. As an industry, we need to optimize our overdraft and interchange income, as well as find new non-interest income opportunities. One opportunity lies within wealth management, or Investment Services.

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! 

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. 

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.

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.

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”.

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. 

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.