A Client’s Perspective: Turning a Problem-Solving Call Center Into a Revenue-Generating Business Unit
Emerging technologies are driving down routine branch transactions at most financial institutions, prompting numerous service calls to call centers. Quickly and efficiently solving issues is the primary focus of most call centers. During periods of excess capacity, one financial institution, ABNB Federal Credit Union in Chesapeake, Virginia, was able to go beyond problem-solving to turn their call center into a revenue-generating business unit.
Eighty-one percent of consumers use online banking, outpacing consumers who use a branch lobby and drive-up services (75 percent), according to Raddon’s Fall 2015 national consumer research. As digital channels grow, so does the need for help from a call center from time to time. Raddon found 63 percent of consumers view a 24/7 call center as an important service when selecting their primary financial institution. Read the whole story »
Pay Me to Use Your Credit Card
The credit card industry may very well have created a monster when it began offering rewards to consumers who use their credit cards. Consumers are now used to getting paid to use issuers’ credit cards and for many consumers, the decision to select a particular credit card hinges on the type of rewards offered.
Five Ways Small Businesses Are Different From Retail Customers
In the process of gathering research and analyzing data for Raddon’s most recent report on the small business market, a number of interesting trends emerged that highlight just how different small business owners are from their retail banking counterparts.
Dealing with the $10 Trillion Elephant in the Room
In 2016, financial institutions are facing new challenges regarding deposit acquisition and deposit retention – challenges they have not had to deal with for a number of years due to an artificially-imposed low-interest-rate environment. With interest rates on the rise, institutions are struggling to determine how much they need to pay to grow and keep deposits, as well as the impact new rate offers will have on funding costs.
Auto Lending Outlook: Looking Out at the Road
The auto lending market looks rosier today than it has for a number of years, with new vehicle sales reaching 17.5 million units in 2015 and auto loan balances increasing to well over $1 trillion at the end of last year. The auto lending market may soon slow, however, due to waning consumer demand and projected higher interest rates.
Market Volatility and the Consumer
The stock market has experienced a number of volatile fluctuations since mid-August 2015. Much attention has been paid to the underlying causes of these fluctuations, with little discussion of consumer reaction to the instability. Recently, Raddon analyzed consumers’ investment activities during this time.
Technology’s Impact on Affluent Investing
Much of the banking technology focus has been on meeting consumers’ expectations for anytime, anywhere transaction accounts, payments and lending. However, according to a recent Raddon study of high-income investors, a financial institution’s technology capabilities can also impact whether it will attract an investor’s business.
Raddon’s Crystal Ball for 2016
As 2016 unfolds, the challenges just keep on coming. Whether caused by geopolitical, economic or other factors, there is enough uncertainty to keep even the most intrepid prognosticator silent. Regardless, the Raddon Report continues its tradition of annual predictions.
The New-Age Banker Challenge
Financial institutions that continue to ignore their customers’ technological delivery presumptions and sentiments do so at their own peril. Taking these preferences into account can decrease an institution’s risk of becoming an anonymous transaction engine, instead serving as an encompassing service provider that plays a central role in customers’ financial lives.