Recruiting for ALM and Treasury Roles: Why These Positions Are Critical for Mid-Sized Banks

Introduction

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.

Why ALM and Treasury Roles Matter

• Liquidity management: Ensures the bank has enough funding to meet obligations and support growth.

• Interest rate risk (IRR): Manages margin pressures in a volatile rate environment.

• Regulatory compliance: Satisfies FFIEC and FDIC requirements for capital and liquidity stress testing.

• Strategic planning: Informs lending, investment, and pricing strategies for sustainable profitability.

Challenges in Recruiting for ALM and Treasury

1. Technical complexity
   These roles require expertise in financial modeling, balance sheet strategy, and regulatory frameworks—skills in short supply.

2. Competition with larger banks
   National and super-regional banks often absorb the limited pool of experienced treasury professionals, offering higher salaries and broader career opportunities.

3. Limited internal pipelines
   Community banks rarely have structured training programs to develop ALM specialists internally, leading to reliance on external recruitment.

4. Generational gaps
   Many experienced ALM professionals are nearing retirement, while younger talent often gravitates toward fintech or consulting roles.

5. Perception issues
   Candidates sometimes view ALM and Treasury as less dynamic than lending or digital banking, making recruiting harder without strong employer branding.

Employer Strategies for Recruiting ALM/Treasury Talent

• Competitive compensation: Benchmark salaries to remain competitive with larger banks; include incentives tied to performance metrics like liquidity ratios or margin stability.

• Professional development: Offer training in regulatory updates, modeling tools, and financial technology platforms.

• Cross-functional exposure: Position ALM as strategic by involving treasury staff in board presentations and lending strategy.

• Technology investment: Provide access to advanced ALM software (e.g., QRM, Empyrean, FIS) to attract candidates seeking modern tools.

• Hybrid work options: Many treasury functions can be performed remotely, broadening candidate pools.

Case Example: Mid-Sized Bank in the Midwest

A $7B-asset bank faced turnover in its Treasury team. By emphasizing the strategic importance of ALM to board-level decision-making and offering leadership development, recruiters secured an experienced candidate from a competing bank seeking greater visibility.

Case Example: Regional Bank in the Southeast
A regional bank sought an ALM manager with fintech experience. By showcasing its investment in advanced treasury software and cross-department collaboration, recruiters attracted a professional who had previously worked in consulting, eager to make a direct impact.

The Recruiter’s Role in ALM/Treasury Searches

Recruiters help by:

• Mapping compensation benchmarks across banks of similar asset sizes.

• Identifying passive candidates from consulting firms, rating agencies, or fintech risk platforms.

• Crafting messaging that positions ALM as a strategic growth enabler.

• Supporting succession planning by advising on mentorship and cross-training initiatives.

The Candidate Perspective

Candidates considering ALM or Treasury roles ask:

• Will my role be viewed as strategic or back-office?

• What tools and technology will I have access to?

• Does the employer support ongoing education and certifications (e.g., CFA, FRM)?

• Is there a clear career pathway to leadership?

Recruiters can help candidates see these positions as dynamic, high-impact opportunities that combine finance, risk, and strategy.

Future Outlook: ALM and Treasury Recruiting Beyond 2026

• Increased regulation: Stress testing and liquidity coverage ratios will drive demand for specialized skills.

• Technology integration: More treasury functions will be automated, requiring candidates fluent in data analytics and financial software.

• Cross-industry recruiting: Insurance and asset management professionals may increasingly move into bank ALM roles.

• Strategic positioning: By 2030, ALM will be recognized as a core driver of profitability, not just a compliance function.

Summary

ALM and Treasury recruiting has never been more critical for mid-sized banks. These roles underpin liquidity, risk management, and strategic planning in a volatile environment. Banks that invest in competitive compensation, modern tools, and branding ALM as a strategic function will succeed in attracting top talent. Candidates gain influence and stability, while recruiters serve as the bridge between a scarce talent pool and banks seeking long-term financial resilience.