As the banking and fintech landscape evolves, industry experts from Travillian: Brian Love, Head of Banking & Fintech, Keith Daly, Principal of Banking & Fintech Search, and Michael Perito, Head of Bank Strategy, offer an incisive look into what 2025 holds. Their insights highlight succession planning, technology leadership, and the rising demand for transformative CFOs.
Building a Strong Succession Plan in Banking
Succession planning has been a critical theme in 2024 and will continue into 2025. Brian Love notes, “We’ve worked on CEO and President searches replacing ‘cults of personality’—leaders whose departure shakes the foundation of their organizations.” Boards are recognizing the need to diversify strategic responsibilities and prepare for leadership transitions to safeguard stability.
Keith Daly echoes this sentiment, citing a “hit-by-the-bus” scenario he encountered with a fintech CEO who acknowledged that no one could replace him immediately. This vulnerability underscores the urgency of robust bank succession strategies.
Finding the Right Tech Talent in Banking
The role of Chief Technology Officers (CTOs) and Chief Innovation Officers (CIOs) is expanding as banks face increasing technological demands. According to Daly, “Banks need top talent to lead their technology and digital divisions to remain competitive.” Love adds, “Finding someone who’s operated successfully in both banking and fintech environments is invaluable. They understand regulatory nuances and legacy systems while driving innovation.”
Community banks, in particular, must reconsider their traditional organizational charts. Perito emphasizes the importance of aligning tech leadership with growth strategies, advocating for “visionary CFOs” and “Chief Strategy Officers” to elevate organizational performance.
The Skills and Experience Required of Today’s Bank CFO
In 2024, CFO searches dominated Travillian’s engagements. Love breaks down their prevalence: “A third were succession-related, another third involved upgrading talent, and the rest required a ‘gut check’ on organizational strategy.” The trend is set to continue as banks adapt to a dynamic regulatory and operational environment.
“The ideal CFO for 2025 will be more strategic,” Love explains. “They’ll need treasury or financial planning experience rather than just accounting expertise, complemented by a Chief Accounting Officer to maintain operational efficiency.”
The Rise of M&A and Fintech Partnerships for Bank Executives
Merger and acquisition (M&A) activity is expected to surge in 2025, with private equity and fintech firms acquiring bank charters. Love predicts this will generate “top-of-house opportunities” for bank executives ready to lead acquired entities.
Moreover, partnerships between fintechs and banks are poised to deepen. Daly observes, “Banks must embrace fintech solutions for efficiency gains and innovation,” citing the increasing importance of roles like Chief Risk Officers who can navigate both ecosystems effectively.
Advice for Aspiring Bank Leaders
Balancing strategic vision with execution remains a challenge. Perito underscores the need for “doers” in community banks who can roll up their sleeves to implement strategies.
Daly’s advice to aspiring leaders is simple: “Raise your hand. Ask to be involved in cross-departmental initiatives. That’s how you grow.”
Key Priorities for 2025
As the industry moves into 2025, the emphasis on leadership agility, technological innovation, and strategic foresight will only intensify. Love, Daly, and Perito agree on one point; Banks and fintechs must have a roadmap to navigate an increasingly complex landscape. To stay ahead, financial institutions need to:
- Prioritize succession planning
- Embrace technology
- Invest in transformative leadership
This content is viewable online at TravillianNEXT.
