NVC is your gateway to the region’s most influential industries. As we celebrate 100 years, we’re connecting with trailblazers shaping the future across industries. Today, we share our latest Q&A with finance executives.
In the face of economic uncertainty and a shifting political landscape, the financial powerhouses of our region are poised to define the future of banking and investment. Home to global financial institutions, fintech disruptors, and key regulatory bodies, Northern Virginia is leading the way in reshaping the industry.
With Loudoun and Fairfax counties among the wealthiest in the nation and over 3,500 financial firms in Fairfax alone, this region is driving growth in private banking, wealth management, and fintech. In this exclusive Q&A, executives share how Northern Virginia is navigating industry complexities and staying ahead in a rapidly evolving market.
Cecilia Hodges, Regional President, Greater Washington Region, M&T Bank
What are your clients most concerned about in today’s financial landscape?
Most clients are primarily concerned about economic uncertainty, including inflation, interest rates, access to capital, the availability of skilled labor, and evolving regulatory requirements and tariffs that may impact their operations. Many are also focused on cybersecurity threats and safeguarding their assets. In the Greater Washington region, any workforce and program reductions are a major concern for businesses, non-profit organizations, contractors, and employees. These changes could have significant implications for the regional economy, and many clients are scrambling to understand how these shifts will affect their business and how best to adapt.
What were some of the biggest challenges your institution has faced in the past, and how did you overcome them?
The most recent challenges in the banking industry have stemmed from turbulence in the Commercial Real Estate (CRE) sector and the failure of Silicon Valley Bank in March 2023. These events created ripple effects, heightening concerns around liquidity, risk management, and regulatory scrutiny. M&T Bank navigated these uncertainties by maintaining a disciplined approach to risk management and a strong capital position. Our focus on diversified lending, proactive engagement with clients, and adherence to sound underwriting principles have helped us mitigate the impact of market volatility. Additionally, we continue to leverage technology and strategic planning to enhance operational resilience and adaptability. While the 2008 financial crisis was a defining moment for the industry, today’s challenges require a forward-looking approach. By prioritizing stability, regulatory compliance, and customer relationships, M&T Bank remains committed to guiding clients through evolving economic conditions.
How might changes at the federal level impact the financial industry?
Regulatory shifts, such as adjustments to capital requirements or lending practices, could alter how banks operate and manage risk. Changes in tax policies and tariffs may influence consumer spending, corporate investments, and overall economic growth. Additionally, increased scrutiny of financial technology and digital banking could introduce new compliance requirements that reshape the industry. As these frameworks evolve, financial institutions must also remain vigilant against rising fraud risks, particularly in digital transactions and cybersecurity threats. Strengthened oversight and enhanced fraud prevention measures will be critical in maintaining trust and financial stability.
As global financial systems evolve, what major shifts do you expect, and how should banks and financial institutions adapt to stay competitive?
The continued rise of digital banking, fintech innovation, and non-bank lenders will drive traditional banks to modernize their services. Economic globalization and geopolitical factors may reshape cross-border transactions and international banking regulations. Additionally, climate change concerns and the growing emphasis on sustainable finance will push institutions to adopt greener investment strategies. To stay competitive, banks must embrace technology, enhance the customer experience, and strengthen data security while maintaining strict regulatory compliance. Proactive adaptation to these shifts will be key to long-term resilience and growth in an increasingly digital and interconnected financial landscape.
James Schenck, Chief Executive Officer, PenFed Credit Union
What are your clients most concerned about in today’s financial landscape?
Our members are everyday Americans and share concerns about the current economic climate. The cost of goods and services has increased, and loan rates are higher for those buying a car or home. As a result, people have taken on more debt as they purchase what is necessary for their families. At the same time, many of our members have taken advantage of higher dividends on certificates and are able to save and invest in their future. We also work with our members to help them prepare to be in the best position to take a loan when rates drop by improving their credit scores.
What were some of the biggest challenges your institution has faced in the past, and how did you overcome them?
We made the decision several years ago to invest in and improve our digital platform. It’s been a strategic focus for PenFed, and we knew that we had to overcome short-term challenges to best position ourselves to serve our members and grow. The new platform allowed us to provide a more personalized digital experience for members and increase self-service through online and mobile applications.
How might changes at the federal level impact the financial industry?
There is a lot of conversation about the potential change to regulatory practice, oversight, and tempo in the financial industry. We have a fiduciary responsibility to our members and must be accountable, self-regulate, and treat the safety and soundness of our institution with the same seriousness in all regulatory environments. We uphold the same commitment to our members no matter how the regulations may change and do not expect members to experience a negative impact due to regulatory changes.
How do you see AI and machine learning transforming banking operations and customer experiences, and what strategies will be key to success?
PenFed’s top priority is continuing our digital transformation. We are focusing on hyper-personalization and hyper-automation and building out our data, privacy, and AI governance teams. With 95% of our engagements being digitally self-service, PenFed receives over 450,000 member logins per day, and the ability to provide real-time highly personalized information that the member needs and desires with end-to-end digitization is our core focus. To do it safely, governance and internal infrastructure are essential.
As global financial systems evolve, what major shifts do you expect, and how should banks and financial institutions adapt to stay competitive?
Digital transformation is a relentless race without a finish line. As global financial systems continue to evolve, the fundamental principles of digital banking including 24/7 availability in resiliency have become table stakes and continuous innovation in product offerings and servicing capabilities will be the true differentiator. Organizations must build a solid digital foundation and infrastructure to pave the way for groundbreaking innovation and remain competitive. It’s critical to find disruption before it finds you.
Todd Rowley, Mid-President, Central Virginia Director of Business Development, Old Dominion National Bank
Q: What are your clients most concerned about in today’s financial landscape?
Bank clients today are facing a variety of concerns in the current financial landscape, such as:
- Economic Turbulence: With fluctuating interest rates and inflation, clients are worried about the possible impact on their savings and investments.
- Regulatory Compliance: The ever-changing regulatory environment requires banks to stay compliant, which can be challenging and potentially more costly for clients.
- Cybersecurity: As digital banking becomes more prevalent, the risk of cyber-attacks increases, making security a top priority for clients.
- Technological Disruption: Rapid advancements in technology mean banks need to continuously innovate to stay competitive, which can be both an opportunity and a concern for clients.
Q: What were some of the biggest challenges your institution has faced in the past, and how did you overcome them?
Protection from cybersecurity threats remains a central focus and challenge for all banks. With the rise in digital banking, cybersecurity has become and continues to be a top concern. We invest heavily in advanced security measures and conduct regular audits to protect customer data and prevent breaches.
Q: How might changes at the federal level impact the financial industry?
Changes at the federal level can significantly impact the financial industry in many ways.
- Regulatory Environment: Changes in federal regulations can either increase or decrease the compliance burden on financial institutions.
- Interest Rates: Federal monetary policy, particularly decisions made by the Federal Reserve, can influence interest rates. Changes in interest rates affect borrowing costs for consumers and businesses, which in turn impacts banks’ profitability and loan demand.
- Tax Policies: Federal tax reforms can alter the financial landscape by changing the tax liabilities of both banks and their customers.
Q: How do you see AI and machine learning transforming banking operations and customer experiences, and what strategies will be key to success?
- Efficiency and Automation: AI will increasingly automate routine tasks.
- Fraud Detection: Machine learning algorithms will analyze transaction patterns to detect potential fraud.
- Risk Management: AI models will predict and assess risks more accurately, helping banks make more informed decisions.
- Personalization: AI will analyze customer data and offer more personalized product recommendations.
- Predictive Analytics: Machine learning will provide predictive customer needs and behaviors.
- 24/7 Availability: AI-driven systems can ensure round-the-clock service.
Q: As global financial systems evolve, what major shifts do you expect, and how should banks and financial institutions adapt to stay competitive?
Digitalization is creating rapid technological advancements that will continue to transform financial services, with AI and automation becoming increasingly important. In addition, demographic changes are occurring among various aging populations in some regions and younger demographics in others, which are reshaping regional economies. To react and respond, banks will need to increasingly embrace technology, increase their digital products and presence, and be quicker to respond to financial, economic, and demographic shifts.
Kayla Kania, Mid-Atlantic Regional Leader, Audit and Assurance Partner, Aprio
Q: What are your clients most concerned about in today’s financial landscape?
Aprio’s clients are navigating economic uncertainty, evolving regulations, and market volatility. With executive orders and federal policies shifting, especially in regions like the DMV—businesses are looking for clarity on tax implications, compliance obligations, and financial planning strategies. At the same time, AI-driven efficiencies and cybersecurity risks are top of mind across industries. Aprio is helping clients stay ahead by providing proactive advisory services that simplify complexity and uncover new growth opportunities.
Q: What were some of the biggest challenges your institution has faced in the past, and how did you overcome them?
The accounting and advisory profession has undergone significant change, from regulatory shifts to technological disruption. Aprio has tackled these challenges by embracing digital transformation, expanding advisory services, and investing in talent development to ensure clients receive forward-thinking guidance. By continuously evolving and leveraging technology, Aprio has positioned itself as a strategic partner, helping businesses stay agile in today’s dynamic financial landscape.
Q: How might changes at the federal level impact the financial industry?
Federal policy changes—such as tax reform, interest rate fluctuations, and new financial regulations—can majorly impact businesses and individuals in the financial industry and beyond. Aprio aims to stay ahead of these shifts by providing tailored insights and strategies for clients to confidently navigate these changes. Whether it’s ensuring compliance with new reporting standards in the financial industry or optimizing tax strategies in various sectors, Aprio is a trusted partner in helping clients adapt and plan for what’s next.
Q: How do you see AI and machine learning transforming banking operations and customer experiences, and what strategies will be key to success?
AI and automation are fundamentally reshaping financial services, from streamlining tax and audit processes to enhancing predictive analytics and risk management. At Aprio, we have leveraged AI tools to eliminate 35,000 manual hours in 2024 alone, with another 20,000 hours expected to be removed by early 2025. This allows our people to focus on what matters most—spending more time with clients, delivering insights, and providing strategic advisory services. The key to success will be integrating AI to enhance, not replace, human skill, ensuring that technology remains a tool for smarter decision-making.
Q: As global financial systems evolve, what major shifts do you expect, and how should banks and financial institutions adapt to stay competitive?
The financial industry is evolving rapidly, with digitization, fintech innovation, and regulatory pressures shaping the future. To stay competitive, institutions need to embrace adaptability—investing in technology, strengthening cybersecurity, and expanding advisory services to help clients navigate complex challenges. At Aprio, we differentiate ourselves by offering data-driven insights, forward-thinking strategies, and a people-first approach that ensures both clients and team members thrive in this changing landscape.
Kathleen Flaherty, Principal, Matthews, Carter & Boyce
Q: What are your clients most concerned about in today’s financial landscape?
For our clients, economic uncertainty is top-of-mind these days as they prioritize planning for operations challenges. Tackling workforce issues, cyber threats, and other risks is further exacerbated by undetermined economic conditions. Our role as a trusted financial partner and strategic advisor is more important than ever.
