Dubbed by some industry analysts as the most “unprecedented and challenging time” facing financial institutions since the Great Depression, the severity of the times may be debatable, but one thing is certain: this period has changed consumer financial behavior and their perceptions of financial institutions. Therefore, we have identified 10 critical consumer research issues to examine in 2010.
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Regulatory challenges, bank failures, economic uncertainty and mounting losses are causing many top-level executives to reassess their institution’s current business model. In this environment, the near term has significant strategic implications. The institutions that will prosper in this new environment are the ones that are willing to act quickly to change their thinking and assess their strategies.
One credit union that recognized the need to change was Tucson Old Pueblo Credit Union (TOPCU), a $140-million credit union located in Tucson, Ariz. The turnaround for this credit union is still under way, but the progress to date has been exceptional. Just seventeen months ago, the credit union was struggling with loan losses from an overly aggressive indirect lending portfolio. The credit union’s president and CEO, Joe Mirachi, was just a week in to the job when Raddon Financial Group (RFG) facilitated a pivotal strategic planning session that changed the credit union’s course. Mirachi offered to discuss the strategic planning process and explain their progress over the past year.
Q): Joe, we conducted our first strategic planning session with TOPCU during a very challenging time for the credit union. What needed to be done to get the credit union pointed in the right direction? Read the whole story »
With all the knowledge technology has enabled only fingertips away, many organizations have approached one major issue in the same for decades: They contact customers who recently left and try to convince them to come back. This “retention strategy” is a real long shot, not only after the fact, but also long past the point when the decision for change was made.
As you may remember, the Treasury Department proposed a far-reaching plan to restructure the financial services regulatory system last June. Called 21st Century Financial Regulatory Reform, the general tenor of the proposal addressed many of the 22 specific and substantive areas that the FCIC was charged to investigate.
Regardless of our political persuasion, we can all agree that accuracy is something that should be demanded from our politicians. Over the last several weeks, we have consistently heard the refrain, “We want our money back!” from President Obama in referring to banks and the TARP program. He has used this as a rallying cry for the need for financial services industry reform and additional limitations on financial service providers.
The proposed “Financial Crisis Responsibility Fee” is designed to cover the complete cost of rescue, an estimated $117 billion.
With severe economic challenges, triple-digit bank failures, mounting losses and new regulatory pressures, could the times have been any worse? However, contributors to The Raddon Report did their best to provide light in this “season of Darkness,” as they urged our readers to use this economic period as a historic opportunity to capture market share from ailing competitors and nurture existing customer relationships through differentiation.