From January 26–28, senior leaders from across the U.S. met in Phoenix at the invitation of industry publication Bank Director. The goal of the gathering was to discuss how the 2025 financial services industry can:
- Better understand the current economy
- Enhance shareholder value
- React to the current competitive environment
- Explore growth opportunities beyond traditional M&A efforts
Mike Perito, Principal and Head of Bank Strategy at Travillian, attended, noting the following observations and predictions.
Key Themes & Takeaways from the 2025 Banking Conference
The overall tone of the gathering was optimistic in light of the next four years of the Trump administration. Community banks, it was reported, see this as a time to act—whether through M&A, raising capital, accelerating loan growth, or advancing digital transformation.
The conference’s other themes included:
1. The Importance of Telling a Bank’s Story
Banks are increasingly pressured to differentiate themselves to investors, regulators, and talent. “Many are frustrated and wondering how they can show differentiation starting in 2025,” reported Perito. Talent acquisition is playing a significant role in shaping these narratives, particularly as former executives from failed banks like First Republic and Signature Bank take leadership roles at institutions such as Bank of San Francisco and OceanFirst Bank.
While M&A can create scale, Perito cautions that it “doesn’t always fix a fundamental profitability issue”—investors are paying close attention to how banks demonstrate sustainable, profitable growth.
2. Cautious Tech Spending in the Banking Sector
Despite the buzz around digital assets, AI, and fintech innovation, bank executives are not yet increasing tech budgets at pre-pandemic levels. Profitability challenges have led to a more measured approach.
Perito observed that technology discussions at the conference focused on treasury capabilities, hedging strategies, AML compliance, automation, and cybersecurity. “Things are certainly getting better, but 2025 budgets and current profitability are still below historical averages,” he notes. Human capital investment appears to be a bigger priority, as banks refocus on liquidity, deposits, and credit risk.
3. Rising Investor Optimism for Bank Stocks in 2025
Discussions with institutional investors at the conference indicated growing optimism for bank stocks in 2025. After a pullback in sector-specific funds during COVID, asset inflows into financial sector investments appear to be increasing. “This is a positive indicator that shouldn’t be understated,” Perito emphasizes, particularly when considering whether the KBW Regional Bank Index (KRX) can outperform the S&P 500.
Regulatory clarity is also on the horizon, with signals pointing toward a more pro-innovation and pro-M&A stance. However, new competition from fintechs that are acquiring bank charters and the rise of credit unions could reshape the competitive landscape.
Outlook for Banks in 2025
Overall, the conference conveyed an upbeat sentiment, with growing pipelines across investment banking, service providers, and tech vendors. Stable interest rates, normalized M&A activity, and steady economic growth could provide a strong runway for U.S. banks in 2025. While challenges remain, the industry appears poised to seize bank opportunities in the coming year.
A complete version of the 2025 Bank Director conference report is available at the Travillian Next website.
