Patrick Cooney, executive recruiter at Travillian, analyzes current trends in community banking against a metaphor for the oncoming football season. He notes how banks have shifted hiring strategies over the past two years, migrating from offense to defense to respond to changing priorities in the industry.
From Defense to Offense: The Changing Landscape of Banking
“Initially, in the wake of high-profile financial collapses like FTX and Silicon Valley Bank, the focus was on defense—specifically Governance, Risk, and Compliance (GRC) roles,” Cooney writes. “Banks responded to these crises by bolstering their defenses, prioritizing risk management, compliance, and cybersecurity.
“This was a reactionary but necessary measure to ensure the regulatory health of institutions amid rising uncertainty.”
Banking Industry’s Shift Towards Offensive Strategies
By the end of 2Q2024, however, it was obvious to Cooney that the pendulum had swung back toward an offensive strategy.
“Banks are now emphasizing growth-oriented roles such as consumer and commercial lending, deposit and treasury management, and leadership positions in the C-suite,” he believes. “These offensive moves indicate a renewed focus on growth and innovation, with banks seeking to capitalize on new opportunities while maintaining a balance with the defensive measures that have been put in place.”
Balancing Risk and Growth
Cooney identifies a notable takeaway from mid-year reviews: “While banks are investing more in offensive roles to drive growth, the lessons from past collapses are not being ignored. The importance of a balanced approach between risk management and growth is now more appreciated than ever.”
The Benefits for the Economy
He concludes by asserting that banks’ work toward a profit-prudence equilibrium benefits the overall economy. It supports both the expansion of banks and the safeguarding of financial stability.
“As the financial landscape continues to evolve, so, too, will the need for banks to adapt their strategies, ensuring they remain resilient in the face of future challenges,” Cooney states.
The complete analysis of community banking shifts from defense to offense can be found at the Travillian website.
