Banking & Fintech

When competing against national banks and fintechs for talent, community and regional banks often find themselves outgunned on salary, technology budgets, and brand visibility. Yet one area where smaller banks can shine is culture. For many candidates—especially those seeking purpose-driven careers, close-knit teams, and leadership visibility—the culture of a community bank can outweigh compensation differences. According to Bank Director’s 2025 Talent Survey, nearly 65% of banking professionals ranked culture as one of their top three considerations when evaluating a new employer. For recruiters and employers, leveraging culture as a recruiting tool is no longer optional—it’s essential.

Core conversions are among the most complex undertakings for community and regional banks. Whether migrating from a legacy system to a modern cloud-based core or switching vendors altogether, these projects require precise execution across technology and operations. Recruiting the right tech and operations staff during a core conversion is one of the biggest challenges banks face. According to a 2025 ABA survey on core banking platforms, over 40% of banks reported delays in their core conversion projects due to staffing shortages, particularly in IT, operations, and project management roles.

Commercial lending is the lifeblood of many community and regional banks, supporting small businesses, real estate development, and regional economies. Relationship managers (RMs) are at the center of this ecosystem, serving as both salespeople and trusted advisors who generate revenue while managing risk. Yet recruiting and retaining strong commercial RMs has become increasingly difficult.

Asset/Liability Management (ALM) and Treasury functions are the backbone of financial stability in community and regional banks. These teams balance liquidity, interest rate risk, and capital planning while ensuring regulatory compliance. The volatility of the post-2020s rate environment, combined with margin pressures and shifting depositor behavior, has placed unprecedented importance on ALM and Treasury roles. According to S&P Global Market Intelligence, over 60% of U.S. regional banks reported liquidity management as their top risk concern in 2025, yet most struggle to recruit or retain experienced ALM and Treasury professionals.

The COVID-19 pandemic accelerated digital adoption across banking, and by 2025–26, digital-first banking has become the expectation, not the exception. Customers want seamless online account opening, intuitive mobile apps, and instant digital lending decisions. According to FDIC data, over 75% of U.S. households used online or mobile banking as their primary channel in 2024, with numbers continuing to climb. For community and regional banks, this shift has intensified the need for digital-first workforces. Recruiting talent who can design, implement, and sustain online and mobile banking strategies is now a top priority.

For community and regional banks, risk, compliance, and audit functions are no longer just back-office necessities—they are front-line priorities. Heightened regulatory scrutiny, increased cybersecurity threats, and the complexity of new financial products are making these roles essential. Yet smaller banks often face acute challenges in recruiting and retaining skilled professionals for these positions. With larger institutions and fintechs competing for the same limited pool, community banks must rethink how they attract and retain this critical talent.

Leadership succession is one of the most pressing challenges for community and regional banks. Many of today’s executives, CEOs, and senior leaders began their careers in the 1980s and 1990s—a period when banking talent pipelines were far stronger. Fast forward to 2025, and a wave of retirements is colliding with a limited pool of next-generation leaders. According to the Conference of State Bank Supervisors (CSBS), over 30% of community bank CEOs plan to retire within the next five years, with many banks admitting they lack formal succession strategies. This talent gap poses both risks and opportunities, and recruiting firms are increasingly being asked to step in and help banks identify and groom future leaders.

Modern banking depends heavily on the core banking system — that central platform through which deposits, loans, payments, ledgers, and regulatory compliance are managed. With digital transformation accelerating, community and regional banks are under mounting pressure to upgrade their legacy cores or migrate to more modern, cloud-native, API-driven platforms. Yet recruiting people who understand both legacy and next-gen core systems is one of the toughest hiring challenges for banks in 2025–26.

Community and regional banks are foundational to the U.S. financial system—serving small businesses, local consumers, and regional economies. But recruiting and retaining key talent is becoming increasingly difficult. As technology, regulation, and competitive pressures evolve, community banks are facing a growing “talent gap” across roles ranging from risk and compliance to digital banking and lending. Understanding what is driving the shortage—and how recruiters and bank leadership can address it—is critical as we move into 2026.

Vision Banking and Fintech: Recruiting Trends and Insights The banking and fintech sectors are rapidly evolving, creating unique challenges and opportunities for recruitment. 1. Growth in Fintech The global fintech market is projected to reach $492.81 billion by 2028 In the U.S., there are over 13,100 fintech startups, accounting for 36.75% of global fintech investment deals. 2. Recruitment Challenges The […]