While it will possibly take months and even the rest of the year to see the full shakeout, April 2025 was a laboratory for market efficiency. Some might contend there was an element of ruthlessness in the activity. Starting even before the Trump administration’s trade policy tariffs went into effect on April 2, the “Bond Vigilantes,” a nebulous gang of institutional debt investors, started shooting up the place.

In periods of uncertainty, the only certainty is that risk increases. In statistical analysis risk is defined by a growing variance level. The wider the swings recorded between a bottom and top boundary determines the risk level. Recently, we have all watched the stock market vary widely on a daily and week-to-week basis. Part of the fluctuations have been caused by the talk of and decisions made regarding international trade tariffs. Understanding how the current policy movements surrounding the tariffs affect your bank is critical right now.

In periods of uncertainty, the only certainty is that risk increases. In statistical analysis risk is defined by a growing variance level. The wider the swings recorded between a bottom and top boundary determines the risk level. Recently, we have all watched the stock market vary widely on a daily and week-to-week basis. Part of the fluctuations have been caused by the talk of and decisions made regarding international trade tariffs. Understanding how the current policy movements surrounding the tariffs affect your bank is critical right now.

As the economic landscape continues to shift rapidly, the ability to navigate unforeseen macroeconomic changes is essential for a bank’s long-term success and the preservation of franchise value.

It’s not news that the number and severity of natural disasters in the U.S. has been increasing significantly in recent years. These events can be personally and economically devastating to local communities, and it’s important that community banks are prepared to help both themselves and the people they serve.

The community banking industry is undergoing a significant digital transformation. While large financial institutions have long used data analytics to drive customer engagement, community banks are now recognizing the value and importance of leveraging information and data to strengthen relationships with their customers.

Most representatives of the broker-dealer industry have been suggesting to their customers, especially community banks, that their collection of bonds could be situated to perform pretty well in 2025. You can be forgiven for rolling your eyes if you’ve heard this.

One of financial institutions’ biggest concerns when considering digital tools such as artificial intelligence, automation, or data platforms is verifying your institution and customer data remain secure. The trust needed with your vendors and platforms require much more diligence, awareness, and monitoring than when you favored an on-premises infrastructure where your team managed the controls, patching, user access, provisioning, and configuration.

While we in the financial services sector start thinking about monetary policy in the coming year, there’s a new wrinkle to consider. Many Fed-watchers, rate prognosticators, economists and even investors had been betting on substantially lower rates in 2025 for many months.

Hackers are leveraging emerging technology to find vulnerabilities in systems once thought impossible to exploit. As a technological renaissance pushes new methods of convenience and optimization, it’s crucial to remain vigilant in a continuously changing setting.