Last week’s Bank Director's Acquire or Be Acquired (AOBA) 2025 conference gave attendees an in-depth look at the shifting banking landscape. Industry leaders, financial innovators, and key stakeholders gathered to explore strategies for growth, emerging challenges, and the role of technology in financial services. Here’s a bit of what we learned.
The banking industry is entering a period of renewed growth. Loan growth is rebounding and aligning with deposits, while net interest margins (NIM) are strengthening, making effective NIM management more critical than mere expansion. After two years of earnings declines, bank and credit union leaders now anticipate steady earnings-per-share (EPS) growth, helping to restore investor confidence.
At the same time, regulatory changes are on the horizon, with shifts expected in tax policy, fintech regulations, and broader pro-growth initiatives. Bank stocks are recovering, yet investors remain cautious about competition from non-bank financial players and fintech disruptors. Consolidation is accelerating as institutions seek strategic acquisitions to strengthen market positioning.
Banks and credit unions are broadening their services beyond traditional offerings to stay competitive. Embedded fintech solutions make integrating products like wealth management into banking apps easier, enhancing the customer experience and allowing banks to focus on new verticals and market segments with bespoke banking solutions.
David Barone, EVP of Client Growth at Nymbus, noted an increasing emphasis on vertical banking. As he put it,
“Vertical banking strategies are key for
differentiation. Scale matters—banks must expand their footprint to remain competitive.”
Barone’s observations reinforced that financial institutions focusing on specific customer segments and scaling accordingly are better positioned for long-term success.
In addition to vertical banking, open banking initiatives like the CFPB’s 1033 rule have reshaped financial services by giving customers more control over their personal financial data. This shift presents both challenges and opportunities, requiring banks to adapt their technology and service models.
Small businesses remain a major driver of economic activity, contributing more than 50% of GDP. They’re also significantly more profitable for banks and credit unions than consumer relationships alone, making them a critical segment to serve.
Starting a small business is becoming easier, thanks to digital tools and streamlined processes that lower barriers to entry. This creates opportunities for FIs to provide tailored financial solutions for SMBs. However, small business owners aren’t just looking for financial products—they also need strategic support. Advisory services, access to capital, and cash management tools are becoming key differentiators for banks and credit unions aiming to attract and retain small business clients.
Community banks, in particular, must find ways to stand apart from large national institutions. Community banks can build deeper, long-term customer relationships by offering personalized, needs-based services that address the unique challenges of small business owners. Retaining small business clients is critical, as losing a business account often leads to losing the personal accounts tied to that business.
AOBA 2025 underscored how rapidly banking is changing. Banks and credit unions that invest in modern technology, data strategies, and embedded fintech solutions will be better positioned to navigate industry shifts and seize new growth opportunities.
Institutions that move decisively will shape the next phase of banking. Whether through vertical banking, small-business solutions, or embedded financial services, Nymbus provides the technology and expertise to help financial institutions stay ahead.
Stay tuned for more updates from Nymbus as we prepare for the next round of events, insights, and transformative solutions in 2025. If you’d like to learn more about how Nymbus can help your institution meet its strategic goals, reach out to us today!