Articles by Bob O'Meara
Bob O'Meara, vice president of research
Bob O'Meara has directed Raddon Financial Group's national research efforts since 1983. Bob is in charge of the Strategic Planning Study Group, national small business research and all custom research projects. Bob has been monitoring changes in consumer attitudes and financial services behavior for over 20 years. He has been a frequent speaker at financial industry trade association conferences. Prior to joining the firm, Bob worked in market research at a $7 billion Chicago financial institution. Bob has his MBA degree from DePaul University.
The Federal Reserve’s decision to begin a more consistent upward movement in interest rates is likely to have a significant impact on the deposit portfolios of financial institutions. Back in March, we posted a piece about the accumulation of liquid deposit dollars at financial institutions nationwide.
This past May, Raddon held semiannual workshops for participants in its Raddon Research Insights program to discuss the most current research and the issues participants face in achieving their goals. This Raddon Report covers research highlights and related discussions regarding how the findings apply to various business models used by our clients.
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.
Now that refinance pipelines have dwindled and the economy is gaining steam, financial institutions must turn their focus to the home purchase market – and Gen Y –to achieve mortgage loan growth. First-time buyers will soon make up half all home purchases, with Gen Y leading the way.
Much has been written in this space and elsewhere about the new checking alternatives offered by online banks and firms, such as American Express. These non-traditional providers tout a low-cost business model, which allows them to offer features and benefits that branch-laden competitors cannot afford to match.
Raddon Financial Group has tracked the changes in consumer banking behavior for 30 years. In those 30 years there has never been a service that has followed a steeper growth curve than mobile banking. According to Raddon’s spring 2013 national consumer research, mobile banking penetration has now reached 35%, up from 10% in 2011.
The “free checking/NSF fee” business model just got a little hairier. Recent trends in NSF-generating transactions and consumer behavior are twisting the model. If you rely heavily on it for your checking account business, it may be time to rethink your institution’s checking strategy.
Preliminary findings from our latest national consumer research study shed some light on consumer perceptions of the current economic environment. As we’re analyzing the survey responses to produce our semi-annual research report, we are seeing a fundamental shift in how consumers perceive the big banks and and in their personal financial expectations for the next six to 12 months.
It seems the consumer population can be divided into two groups: confident and worried.
A few days ago, a colleague asked “can you write a post for The Raddon Report about the three things every bank should know about small businesses?”
“Just three?” I responded, “banks need all the information they can get on the small business market.” (I just completed a comprehensive national small business research study – over 80 pages of fresh data – and this guy was asking me to narrow it down to three key points?) Point #1: The Small Business Segment can be a Core Deposit Growth Solution …