Michigan banker Kenneth Kelly using leadership skills as 2025-26 ABA chair

American Bankers Association Chair Kenneth Kelly expects to leverage his leadership experience in banking and the electrical sector to grow the industry from within. Kelly was an energy industry executive before transitioning to banking in 2017 when he was named chair and CEO of First Independence Bank in Michigan..Kelly, who was named 2025-26 ABA chair in October during the association’s annual convention in Charlotte, N.C., served as association vice chair in 2023 and chair-elect in 2024. “We know each other, we know each other’s style,” Kelly said of his relationship with fellow board members.There are several goals Kelly, 58, has as chair: Being a unifying advocate and trusted partner for the industry; and serving as an innovative catalyst to usher in new technology. He wants to strengthen the ABA’s Council of Emerging Leaders, as it matches his view of leadership and culture as being crucial for intentional succession planning.Banks need to keep an eye on artificial intelligence, Kelly said, understanding the impact of the emerging technology on banks and how it can be used to attract new customers and help play defense in terms of cybersecurity.His banking career has been defined by leadership at the micro and macro levels. When he entered the industry, Kelly, wanting to ensure his team was taken care of and were engaging with the right external partners, served on the FDIC Advisory Committee under former Director Jelena McWilliams. He soon realized he could influence policy to help his bank and the broader industry.A member of the Federal Reserve Bank of Chicago’s Community Depository Institutions Advisory Council from 2018-20, Kelly also had a board advisory role with the Federal Reserve Bank of Minneapolis. As chair of ABA’s Deposit Insurance Task Force, Kelly led the recent development of recommendations to modernize the deposit insurance system. Released in July, those suggestions include making assessments tax-deductible, reviewing optional excess deposit insurance and increasing the FDIC’s “least cost” test for failed banks to include systemic risk.Before joining First Independence Bank, Kelly held leadership positions in multiple areas during a 27-year career in the energy industry. From 2012-17, he was a business development manager at Atlanta-based electrical firm Southern Power Company, where he identified, bid on, and acquired utility-scale solar projects.“The jobs I worked during my career with Southern Company — everything from engineering, marketing, corporate finance and human resources to supply chain management, sales and M&A — helped me to develop my leadership skills and prepared me to serve,” Kelly remarked during a speech at the ABA annual convention.His entry into banking had been a long time coming. His cousin, former longtime First Independence Chair Don Davis, acquired First Independence Bank 35 years ago, and Kelly had been asked to make bank decisions and sit in on board meetings. Kelly committed to learning about the history and rules of banking, and was eventually asked to join the board by First Independence’s then-interim board chair.The connection between the highly-regulated banking and electrical industries was not lost on Kelly. He thought the relationship-focused nature of both sectors afforded him the opportunity to change lives. Kelly’s belief has paid off.His time as First Independence Bank’s leader has brought exponential growth for the Detroit-based bank. He uses the mantra “thinking, acting and behaving like a technology company.”Kelly’s approach has reaped rewards, building First Independence Bank into one of the largest mission-driven banks in the country and doubling its book value over the past five years. The bank now has nearly $700 million in assets, up from $200 million in 2017. He sees the growth as intentional and necessary to combat the outsized increase in cybersecurity, compliance and technology expenses relative to what most banks can pay by growing at an organic, 3-5 percent annual rate.First Independence recruited talent from larger banks who were attracted to the bank’s mission of financial inclusion. “Talent is very important,” Kelly added. He saw parallels in providing chances for financial stability during the bank’s founding following the devastating Detroit riots of 1967 and the riots following the death of George Floyd in 2020 in Minneapolis. In 2022, First Independence partnered with Twin Cities-based Bank of America, Bremer Bank, Huntington Bank, U.S. Bank and Wells Fargo to open in a vacant Wells Fargo office near the University of Minnesota campus.Another important responsibility Kelly sees for himself is proving to Black Americans that they can lead in the banking industry. “It is important for people who look like me to see me be successful,” he added.Kelly is ABA’s first Black chair in its 150-year history. ABA President and CEO Rob Nichols said Kelly “brings a powerful combination of decisive leadership, strong vision and problem-solving skills. “He understands the unique challenges facing smaller institutions thanks to his leadership of First Independence, while also recognizing the critical role banks of all sizes play in our economy,” Nichols added. “He has been a strong advocate for our industry as an ABA board member, and we are thrilled to have Kenneth lead our association during this pivotal time.”