The stage is set for a massive leadership transition that will reshape the foundation of the banking industry.
Picture this: a tidal wave of change comes crashing over the financial services industry, sweeping away the old guard and ushering in a new era of leadership. Fiction? Not if you trust various industry experts who predict that half of all board and senior management positions will turn over to fresh faces by the end of 2025.
The catalyst? A perfect storm of generational transitions, business models evolving at breakneck speed, and baby boomers hanging up their pinstripe suits en masse. As these industry veterans ride off into the sunset of retirement, a new breed of leader is emerging — one that speaks the language of data and predictive analytics as fluently as P&L statements.
In this new world of banking, the phrase “next up” takes on a whole new meaning. It’s less about who would have been next in line and more about who’s able to differentiate the bank’s business model and diversify the revenue profile. Picture younger, digitally native CEOs striding confidently into the C-suites of banks, armed with fresh ideas and a natural affinity for the digital age.
Such a shift raises a crucial question for aspiring leaders: How can they position themselves for new opportunities in 2025?
After years of conversations with bank CEOs (along with my own experience running and growing a company), I’ve compiled observations on what defines leadership today and how to prepare for tomorrow. The stage is set for a leadership revolution that promises to reshape the very foundations of the financial services industry. Buckle up, folks — the future of finance is younger, bolder and coming in hot.
New Doors Opening
In a recent Banking Weekly Newsletter, Second Curve Capital’s Tom Brown highlighted Tim Spence, the 45-year-old CEO of Fifth Third Bank, as an example of modern banking leadership. Tim’s career — spanning tech startups, consultancy roles and a rapid ascent at Fifth Third — underscores the value of digital expertise and strategic vision. As Tom noted, Tim worked at two tech startups (one successful, one resilient), became a bank consultant, and joined Fifth Third in 2015. He progressed from chief strategy officer to president in just eight years before becoming CEO.
Leadership, however, is multifaceted. In my ongoing Plugged In conversations with some of the most successful industry leaders, I have identified common evolving traits of the “Modern Banking Executive.”
When Attitude Is Everything, Anything Is Possible
Great leaders craft a vision that gives their teams a sense of purpose and direction. Each day, they lead by example, exhibiting:
- Truthfulness. These are the people who embrace honesty, even when it’s uncomfortable.
- Transparency. They communicate the reasons and rationale behind tough decisions to build trust.
- Consistency. They set clear expectations, stay open-minded and say no when they need to.
In 2008, Chip Mahan and the team at Live Oak Bank set out to “revolutionize banking” with a mission to become America’s small business bank. Sixteen years later, Live Oak is a national SBA leader with a $2 billion market cap. Through all his entrepreneurial activities, Chip always challenges his teams to see the “art of the possible.”
Respect Over Popularity
I’ve repeatedly found that people follow individuals, not titles. I know that being liked is good, but being respected is a requirement to run anything. Respect stems from:
- Optimism and curiosity
- Humility
- Genuine self-belief
Great leaders solicit feedback, act on it and hold people accountable for their results. They understand the old saying, “To go fast, go alone. To go far, go together.” For instance, David Brager of CVB Financial makes it a priority for his entire team to actively engage in the strategic planning process of “pressure testing” goals and priorities. This candid, collaborative culture has helped drive incredible team member retention at the bank and resulted in the honor of being a consistent top performer in Forbes bank ratings.
Balancing Growth, Stability and Profitability
Today, most bank CEOs seek a balance of stability, profitability and growth. For aspiring leaders, growth should be viewed as a tactic, not a strategy. Companies like Southwest and Target demonstrated this year how undisciplined growth can derail an organization. Banking leaders like Lakeland Financial’s David Findley show how balancing risk-taking with disciplined rigor and operations can generate outsized long-term value. Findley has successfully built a culture that consistently prioritizes outcomes over excuses.
Culture: The Leadership Foundation
Culture encompasses talent, messaging, values and purpose. Strong leaders maintain high standards and lead by example, ensuring their teams align with the institution’s mission. Nicolet Bankshare’s Mike Daniels credits his culture of shared success as a key to the creation of the bank’s $1.7 billion market cap. Everyone I’ve met at Mike’s bank focuses on mattering to “customer, community and one another.” Remember: a leader’s acceptance or rejection of poor behavior also defines an organization’s culture.
Understanding the Banking Business
Regardless of one’s role, banking revolves around the strength of the balance sheet and income statement fundamentals. Key considerations include:
- Interest rate positioning’s impact on margins
- Metrics like the PEG (price/earnings to growth) ratio, efficiency ratio, ROE and ROA
- The significance of diverse, resilient customer bases and cost-efficient funding
High-performing bankers like WaFd’s Brent Beardall excel by managing these fundamentals while understanding the need for the strategic transformation of the franchise. While Brent runs WaFd at a 57% adjusted efficiency ratio, he has also led heavy investments in becoming “a digital-first bank that leverages data to anticipate financial needs.” Brent is a finance genius who also leans in as a student of customer experience, API integration and AI possibilities.
Paths Forward
The “next man up” must combine digital fluency, traditional banking expertise and strong leadership skills. The best of these future leaders will blend traditional banking wisdom with innovative thinking that draws inspiration from both history and success stories from outside our industry.
Performance will depend on their ability to foster a culture of continuous improvement that balances stability with innovation, ensuring the banking sector remains relevant and resilient in the years to come. Most important? Realizing that leadership is not just about individual achievement, but about creating high-performing teams capable of navigating complex, ever-changing business challenges.
Al Dominick is a partner at Cornerstone Advisors. Tune in to Al’s Plugged In podcast and follow him on LinkedIn.