As 2025 winds down, if you are like me, it feels as though the year just started last month. As with any year, there were changes, challenges and successes that led us to where we are now. The changes and challenges we faced in 2025 prepared us, as individuals, banks and our entire industry, to handle the known and unknown events that will arise in 2026.
In 2025, we had to deal with many things, some of which were positive and some not so much.
President Trump took office on Jan. 20, which was shortly followed by various changes in government offices, a reduced government workforce, tariffs and deregulation. However, compliance will always be a significant part of our everyday processes.
Cyber threats and various forms of fraud have increased in complexity during the past year, none of which we are immune to. Fraud will remain an ongoing battle for every bank, necessitating advanced monitoring, customer and staff education, and the utilization of technological tools.
Artificial intelligence presents both new levels of benefit and risk, making it a true double-edged sword. AI can reshape banking as we know it. While forms of AI have been around for years, their usage has increased and will only continue to grow.
If not addressed yet at your bank, real-time payments are advancing and will change how banks operate.
Stablecoin and bitcoin are becoming more acceptable every day within the U.S., and banks will need to determine how to handle them in the future.
The Federal Reserve has begun lowering interest rates due to concerns about the labor market, despite inflation not yet reaching the Fed’s target rate. The drops will impact banks’ net interest income and their strategies for managing interest income.
In banking, one thing is certain: change. Challenging conditions should prompt us to adopt strategies beyond traditional banking that create greater value. It is essential that we collaborate as a collective to share knowledge and advocate for pro-bank legislation, thereby growing and strengthening both the banking industry and our organization.
Throughout all the changes and challenges we have experienced in 2025, we have so much to be thankful for. The connections we share, the audits and exams that help us improve, the boards that provide insight and direction, the employees who work to provide customer service, the customers who allow our banks to serve their needs, and our families. As we reflect on 2025, the new year is just around the corner. With that, I look forward to seeing each of you next year, and I wish everyone a great and successful 2026.
