ABA survey: Community bank exec optimism runs high

Executives and board members are optimistic about the economy and their local markets, according to the American Bankers Association Community Bank CEO Priorities for 2025 report released earlier this month. .Nearly all CEOs, presidents and board members report having “some level of confidence” in both the nationwide and local economies this year, according to the report. A majority reported being either “completely” or “fairly” confident in their local markets. Only 11 percent planned to reduce employee headcount in 2025, with most either planning to keep their workforce roughly the same size or slightly grow. Many banks expect to continue their technological push this year. Sixty five percent plan to implement new technology to reduce operating costs. Sixty percent expect to grow organically in current markets, while 54 percent will introduce new products or services for commercial or consumer clients.Half of banks plan to increase products and services on their digital channels, and 44 percent expect to offer more personalized services. Forty two percent will create new digital customer experiences, and 24 percent anticipate adding digital channels.More than one-third plan to offer real-time payments such as FedNow and The Clearing House. Twenty nine percent expect to offer digital account opening, including digital and mobile channels, while 21 percent anticipate adding e-signature verification.Seventy five percent cited cost as their top challenge to onboarding new technology. Forty five percent said they would be more proactive in fraud detection and resolution this year. A similar percentage said they already had real-time fraud detection capabilities, and 37 percent expected to implement new real-time capabilities.