CEO Strategies Group Recap: What Are the Keys to Sustainable Performance?
One overarching theme at the workshops was the importance of strategizing for sustainable growth. Considering the ongoing industry consolidation (largely a function of smaller organizations going away), rising operating and delivery costs and the clear earnings advantage for larger institutions, the ability to grow and benefit from economies of scale will be vital to organizational success, if not survival.
Does the PFI Designation Still Have Value?
With the advent of alternative financial service providers, financial institutions may wonder if there is still value in being a consumer’s designated primary financial institution (PFI). If there is value, what opportunities are there to increase customer wallet share?
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.
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.