Historically, community bank IT leaders were responsible for managing systems and fixing technical issues. But as technology continues to transform banking, their role has evolved. IT leaders today are no longer just operational experts—they are strategic partners who influence the bank’s direction, risk management, and digital initiatives.
For CEOs, the challenge lies in evaluating whether their IT leader is equipped to handle the complexities of today and the future. With 2025 on the horizon, this assessment becomes even more critical, as the role of technology within banks only deepens.
Three primary factors are driving this evolution:
Customers now expect streamlined digital services, from mobile banking to instant payments. This shift places IT leaders at the forefront of implementing these innovations effectively and securely. Their role extends beyond managing technology; it’s about leveraging technology to enhance the overall customer experience.
To meet these demands, community banks are increasingly adopting an omni-channel service model, where customers can seamlessly transition between mobile apps, online banking, and branches. Self-service handles routine tasks like checking balances or transferring funds, while agents step in for complex issues such as loan disputes or regulatory matters. For IT leaders, this means building flexible systems that integrate automation tools like chatbots, with a strong escalation process for personalized support. Balancing self-service with human support is key to delivering a smooth customer experience, and CEOs should ensure their IT leader can adapt this approach as customer expectations evolve.
Technologies like artificial intelligence (AI), data analytics, and automation have become essential competitive advantages for community banks. AI streamlines tasks like fraud detection and credit underwriting, improving accuracy and speed. Data analytics provide insights into customer behavior and market trends, enabling better business decisions. Automation reduces manual work, enhancing efficiency and freeing up staff for more strategic tasks.
Banks are just beginning to navigate this transformation. They need forward-thinking leaders who can envision where these advancements are headed and lay the groundwork now to capitalize on future opportunities. For example, leveraging AI for loan approvals can enhance decision-making, while using data analytics can help predict customer needs. CEOs should ensure their IT leader is equipped to evaluate and implement these advanced tools in a way that aligns with the bank’s strategic goals and delivers measurable value.
Regulatory requirements and cybersecurity risks continue to escalate, creating a complex landscape for community banks. IT leaders are now tasked with ensuring that the bank remains compliant amidst evolving regulations while actively defending against increasingly sophisticated cyber threats. In a world where data breaches are not just possible but likely, proactive risk management is essential. This means not only adhering to regulatory standards but also anticipating emerging threats and implementing comprehensive security measures to protect both the bank’s assets and customer data.
According to an IBM study, the average cost of a data breach in the financial services industry reached $4.45 million in 2023, among the highest across industries, underscoring the urgency for strong, proactive IT leadership in cybersecurity. CEOs must evaluate whether their IT leader has the knowledge and resources to stay ahead of these risks while maintaining compliance in an ever-changing environment.
As these forces reshape banking, the role of the IT leader has transformed in three critical ways:
The days when IT leaders were seen as purely technical managers are over. Today, they play a strategic role, working closely with CEOs, CFOs, and other senior executives to ensure that technology investments are aligned with the bank’s broader business objectives. This shift means IT leaders must possess strong business acumen, understanding not just technology trends but also how they drive growth, improve efficiency, and enhance customer experiences.
For example, when considering a new core banking system, the IT leader isn’t just evaluating it from a technical standpoint—they are assessing how the system will impact customer service, support future growth, and integrate with other digital platforms. They should be capable of identifying technology-driven opportunities that can differentiate the bank, such as introducing new digital services or improving data analytics for better decision-making. This requires an IT leader who can think holistically about the business, communicate effectively with non-technical stakeholders, and build a technology roadmap that supports both immediate needs and long-term strategic goals.
In today’s environment, cybersecurity isn’t just an IT concern—it’s a critical business issue. As the frequency and complexity of cyberattacks increase, the IT leader’s role has evolved to encompass comprehensive risk management. CEOs should expect their IT leader to not only implement compliance-based security protocols but also to proactively address emerging threats and educate the entire organization on cybersecurity best practices.
This involves working closely with the board and other senior leaders to develop a cybersecurity strategy that extends beyond meeting regulatory requirements. It means regularly assessing risks, running drills to test incident response plans, and continuously updating security protocols to account for new vulnerabilities. A strategic IT leader will go further by fostering a security-first culture throughout the bank, ensuring that every employee understands their role in keeping customer data secure and maintaining the bank’s reputation. A forward-thinking approach to cybersecurity will not only protect against data breaches but also build trust with customers and regulators, strengthening the bank’s market position.
In today’s competitive market, banks must be agile—not just in technology, but also in how they respond to new opportunities. IT leaders play a key role in enabling this agility by adopting tools like workflow automation to streamline processes, improve efficiency, and enhance the customer experience.
Beyond technology, successful IT leaders facilitate cross-functional collaboration and encourage an agile mindset across the bank. For instance, when developing a new digital product, an IT leader can break down silos between IT, compliance, and business teams, leading to faster product rollouts and better alignment with customer needs.
CEOs should evaluate whether their IT leader has the vision and influence to drive these changes. Are they equipping teams to adapt quickly, and making sure that technology investments are enhancing both operations and culture? An agile IT leader will be key in ensuring the bank can keep pace with evolving demands and stay ahead of market shifts.
CEOs are under pressure to navigate the complexities of modern banking, and having the right IT leader is crucial to this. In today’s banking landscape, IT leaders are as crucial—if not more so—than chief lending and chief credit officers. As you look ahead to 2025, ask yourself whether your current IT leadership is aligned with these emerging challenges:
Bank Director’s 2024 Technology Survey revealed that 61% of bank executives see technology as a strategic priority, yet only 55% feel their banks allocate enough resources to it. This disconnect between recognition and action presents a challenge. CEOs should consider whether their IT leader is capable of championing the resources and strategies needed to make technology a competitive advantage.
Compliance and cybersecurity challenges extend beyond IT—they’re critical components of the bank’s overall risk strategy. With increased regulatory scrutiny and an ever-changing cyber threat landscape, it’s crucial for CEOs to ensure their IT leader possesses the foresight and skills to manage these risks effectively.
The right IT leader should be developing a forward-looking risk management strategy, anticipating threats, and aligning with the bank’s compliance objectives to safeguard the bank’s future against the risks of 2025.
The days of IT departments operating in silos are over. Today, IT leadership must directly contribute to business outcomes—helping to increase efficiency, improve customer satisfaction, and identify new growth opportunities. CEOs should consider if their IT leader has a results-oriented mindset, setting measurable KPIs that align with strategic business goals. A high-impact IT leader not only manages technology but leverages it to enhance profitability, optimize operations, and drive the bank’s competitive edge in an evolving market. The question is no longer if technology can support the bank but how effectively it drives tangible value.
The pace of change in technology is relentless, and the stakes have never been higher for community banks. Inaction or outdated IT leadership could mean missed opportunities, increased security risks, and losing ground to competitors. The right IT leader isn’t just there to manage systems—they are integral to your bank’s growth, risk management, and ability to remain competitive.
As you look to 2025, ask yourself: Does your IT leader have the strategic vision and expertise to navigate the complexities ahead? Ensuring that your technology strategy aligns with your bank’s broader goals could be the defining factor in securing your bank’s future success. And if you already have an IT leader who fits the bill, consider what it will take for them to remain relevant and effective as the landscape continues to evolve.