ICBA Live 2025 brought together community bankers, fintech leaders, and industry experts to discuss the biggest challenges and opportunities facing community banks today. The conversations at the event highlighted several key themes shaping the future of community banking. Here’s what stood out to us:
Safeguarding Against Cybersecurity and Fraud
Facing increasingly sophisticated fraud schemes, community banks are under mounting pressure to enhance their security measures. Several sessions and conversations at ICBA LIVE underscored the urgency of staying ahead of fraudsters while complying with evolving regulations.
Cybersecurity remains a top concern across the industry, with 96% of community bankers identifying it as an "extremely important" or "very important" risk. This reflects the growing demand for stronger fraud detection tools, proactive compliance strategies, and better risk mitigation frameworks.
Fraud prevention isn’t just about reacting—it requires equipping banks with the right tools and partnerships to address emerging threats. Leveraging real-time data analytics and advanced fraud detection solutions can help institutions protect themselves and their customers without adding unnecessary operational complexity. As fraud continues to evolve, ensuring a strong, adaptable security framework will be critical for community banks looking to maintain trust and resilience.
Open Banking and Compliance: The Path Forward
One of the biggest discussion points at ICBA Live was the evolving regulatory landscape and how it’s shaping the future of community banking. Many institutions are exploring how open banking can help them stay competitive, improve customer experiences, and create new revenue opportunities—but navigating compliance remains a challenge.
Our Chief Banking and Risk Officer, Michelle Prohaska, discussed the latest regulatory changes and their impact on financial institutions in a recent episode of Nymbus Voices. She emphasized that compliance isn’t just about meeting new rules—it’s about using those guidelines to enhance customer trust and build more resilient financial institutions.
As regulations continue to evolve, financial institutions need a compliance strategy that allows them to embrace innovation without increasing risk. A strong framework ensures banks can confidently explore fintech partnerships, embedded finance solutions, and new digital services while maintaining trust and security. You can watch the full episode here.
Frustrations with Legacy Core Providers
Many of the community bankers we spoke to expressed frustration with their current core providers, specifically around service quality and rigid contract structures. Long-term agreements often make it difficult for banks to transition to new technology, even when their existing systems no longer meet their needs.
The 2024 ABA Core Platforms Survey found that bankers rated their overall satisfaction with core service providers at 3.19 out of 5, reflecting ongoing concerns about support, innovation, and flexibility (ABA Banking Journal).
Additionally, integration challenges were a recurring concern. Banks reported that while some core providers promise seamless third-party integrations, the reality is often expensive and time-consuming.
Nymbus Core is designed for flexibility, helping community banks modernize at their own pace while ensuring they have the integrations and support they need to grow without friction.
Leveraging Fintech Partnerships to Accelerate Growth
Another major theme at ICBA Live was the importance of fintech partnerships in helping community banks compete and innovate. Many sessions emphasized how traditional institutions can collaborate with fintechs to expand their capabilities without the burden of massive technology overhauls.
For banks looking to grow, fintech partnerships provide the agility to launch specialized products, enter new markets, and enhance customer experiences. This is exactly where Nymbus Launch makes an impact.
Launch provides a strategic way for banks and credit unions to introduce new digital brands without disrupting their existing operations. By leveraging fintech partnerships, institutions can move faster, attract new customer segments, and diversify revenue streams—all without the heavy lift of a full core replacement.
That’s why banks are turning to solutions like Nymbus Launch. It allows them to build digital-first brands that align with evolving customer expectations while maintaining the stability of their existing institutions.
Final Thoughts
ICBA Live 2025 highlighted the challenges and opportunities community banks are facing as they work to modernize. Cybersecurity threats are becoming more complex, regulatory changes require proactive compliance strategies, and legacy core providers continue to create roadblocks to innovation. At the same time, fintech partnerships and open banking frameworks are creating new ways for banks to expand their offerings and improve customer experiences.
Community bank leaders aren’t just looking for new technology. They need flexible, scalable solutions designed to support their growth without disruption. The discussions at this year’s event reinforced that modernization isn’t just about replacing outdated systems; it’s about finding the right approach to innovation that balances security, efficiency, and customer expectations.
As banks plan their next steps, they will focus on finding partners to help them navigate these challenges while providing real, tangible benefits. The institutions that embrace fraud prevention, regulatory readiness, and digital-first strategies will be the ones leading the future of community banking.
