More than two-thirds of CEOs at mid-size financial institutions are prioritizing loan growth, according to Jack Henry’s annual Strategic Priorities Benchmark Study.
According to the survey of more than 100 CEOs from banks and credit unions ranging in size from $500 million to $10 billion, Sixty percent of respondents said their top concern was talent acquisition and retention, as ongoing workforce shortages continue to hamper the economy.
Nearly half said their top concern was net interest margin compression, and 41 percent listed fraud and security. Other top priorities were finding operational efficiencies and adding digital products/features — 44 percent and 39 percent, respectively.
Top competitive threats included fintechs and big tech firms, followed by large banks and other community-based banks and credit unions.
Nearly four-in-five CEOs plan to increase spending on technology over the next two years with digital banking, fraud and security technology, and automation being their highest investment priorities.
“Eighty-five percent of the respondents said they plan to pursue a niche market to scale growth, differentiate in a crowded financial services market, and support local communities,” the report stated.