Small Business Customers Want More Than a Relationship
When competing with other financial institutions for new commercial loan business, what are the primary factors that allow you to win the business? Is the strength of your business bankers’ rolodex the primary driver of new business?
2013 in the Rearview Mirror
Many of us gladly said farewell to 2013 and are looking forward with more optimism to 2014. We at the Raddon Financial Group understand this sentiment. 2013 was a year of continuing recovery for the economy and the industry, albeit a very slow recovery. The economy improved – slowly – and the industry improved – also slowly.
Financial Institutions Need To Adapt To Overcome Loan Growth Challenges
Raddon Financial Group’s National Consumer Research shows that anticipated demand for any type of loan has been declining for some time, and this trend accelerated in 2008 with our country’s economic decline. Since then, despite the pronouncement by the National Bureau of Economic Research that the recession ended in June 2009, there is strong evidence to suggest that America’s psyche has been scarred with respect to carrying and taking on debt.
Equity Lending – Is the Phoenix Rising?
When the housing bubble burst in 2006, home values expectedly began a steady decline and ultimately hit rock bottom in 2012. Accordingly, financial institutions were hesitant to market their home equity credit products because of the existing uncertainty with home values. Now with home value appreciation occurring across the country, some financial institutions are returning to the marketplace with equity credit products.
The Evolution in Non-Interest Income
Three seminal but seemingly unrelated events are suggestive of the pressures the financial services industry is likely to face in 2014. These pressures are changing the fundamental business models of financial institutions.
First is the decision by US District Judge Richard Leon to send back to the Fed for revision its cap on debit card interchange.