Nick Miller, Partner & Head of the Wholesale Banking Practice at Odgers, discusses disruptions facing the banking industry and how top executives are navigating them
What defines successful banking leadership when volatility is no longer an exception but the norm? That question sits at the heart of today’s wholesale banking landscape. Geopolitical instability, shifting demographics, evolving regulatory scrutiny, and rapid advances in technology are reshaping the sector at pace. Balance sheets remain vital, but long-term success depends as much on the executives steering their institutions as on the capital they deploy.
From my vantage point as a headhunter working with senior banking leaders, it is clear that the qualities now in demand differ markedly from those prioritised in more stable eras. The leaders who thrive are those who hold their nerve in turbulent markets, manage resources with discipline, take non-financial risks seriously, and know how to turn disruption into lasting opportunity.
Strategic Discipline in a World of Shocks
Executives across the industry stress the need to resist short-termism. The most resilient banks are those that hold fast to their five-year strategies, adjusting tactically without sacrificing long-term direction. Leaders I speak to recall the lessons of previous crises: those who reacted rashly often undermined their competitive positioning.
Today, the mark of an effective executive is patience combined with adaptability and a willingness to stay true to strategy while responding intelligently to immediate shocks. Such discipline is increasingly prized in senior appointments, where boards seek individuals capable of balancing long-term vision with short-term agility.
Resource Management and the Talent Tightrope
Prudent hiring is another hallmark of the current environment. Many banks are delaying expansion plans and scrutinising headcount carefully, ensuring that existing teams are fully resourced before considering growth.
Yet beneath these tactical decisions lie a more profound demographic challenge. Graduate inflows into banking have slowed as younger workers gravitate toward technology and fintech roles. At the same time, firms are relying heavily on experienced professionals, creating a steadily ageing workforce.
The implications for succession planning are significant. Some banks are now offering retention bonuses to key staff as an incentive to delay retirement, buying time to strengthen their pipelines. But this is not a permanent fix. Gen Z comprises more than a quarter of the global workforce, but many remain unconvinced that banking aligns with their values and ambitions.
Executives who can address this generational gap, by reshaping culture, creating purpose-driven roles, and ensuring career progression, will be crucial to the sector’s long-term resilience.
Risk Redefined – Beyond the Balance Sheet
If traditional risks dominated executive agendas in the past, today it is non-financial risk that occupies an equal share of attention. Bank chief risk officers now spend nearly half their time on non-financial issues such as conduct, culture, cyber resilience, and ESG compliance.
Regulators are reinforcing this shift. The European Central Bank, for instance, has made the remediation of governance and climate risk shortcomings a supervisory priority.
Meanwhile, ESG integration remains a work in progress, with many banks still struggling to embed environmental and social risk drivers into their models. The next generation of leaders must therefore prove credible to clients, regulators, and employees alike, demonstrating resilience not only financially but socially.
Turning Volatility into Opportunity
Volatility is not solely a threat. For strong institutions, it can also be a growth catalyst. Banks that support their clients through turbulence often emerge with deeper, more loyal relationships. Bank of America, for example, recently reported record trading revenues as clients turned to its platforms to hedge risks amid market uncertainty.
The ability to view volatility as an opening rather than a setback requires confident leadership. Executives who can identify stable growth sectors, such as infrastructure and defence, while their peers pull back are particularly well positioned. These are the leaders able to balance prudence with boldness, protecting their institutions while finding new avenues to grow.
Leadership, Communication, and Culture in Banking
If there is one consistent theme across conversations I have with banking executives, it is the value of clear communication and strong culture. Transparent dialogue, particularly in difficult circumstances, builds trust and resilience across teams. Leaders who invite bad news early and foster open communication are able to respond with agility.
These “cultural carriers” are increasingly in demand. Technical expertise remains essential, but the most sought-after executives are those who combine expertise with empathy and influence. They know how to hold an organisation together when external forces pull it apart.
Banking Outlook: Cautious Optimism, Divergent Views
Looking ahead, industry sentiment is mixed. Some banking executives are optimistic, pointing to opportunities in volatile conditions and rising client demand for guidance. Others are more cautious, noting ongoing geopolitical tensions and fragile market sentiment. Yet even amid this divergence, one view unites them: leadership quality, more than capital buffers, will determine which banks emerge stronger.
For the next 12 to 24 months, the challenge is not to predict volatility but to place the right executives in the right roles to navigate it.
