Financial institutions today are operating in a landscape that’s defined by volatility. Tariffs, inflation, supply chain shifts, and labor market challenges continue to pressure organizations in ways that feel both urgent and unpredictable.
However, the financial services industry is not retreating. It’s responding with strategic foresight, operational flexibility, and technology-enabled efficiency. According to our Economic Sentiment Survey of over 100 finance leaders from U.S. banks and credit unions, organizations are not just surviving this disruption. Instead, they’re preparing, adapting, and emerging more resilient than before.
Concern Is Widespread... But So Is Confidence
When asked if they were concerned about the current state of the economy, an overwhelming 86% of finance professionals in our survey said “yes.” That level of concern is understandable given persistent inflation, recession talks, and the ripple effects of global tariffs.
Digging deeper, the data shows that this concern is nuanced:
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- Over 55% of respondents are “very concerned” about the impact of tariffs.
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- Roughly 53% feel similarly about inflation.
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- Nearly 45% are highly concerned about a potential recession.
However, this awareness doesn’t translate into panic. In fact, 68% of survey respondents said their outlook for the next 12 months is either “more positive” than in 2024 or “about the same.” That tells a different story—one of resilience.
So what do these numbers mean? Financial professionals are bracing for disruption while maintaining a steady course. They’ve seen this before, and they’re better equipped than ever thanks to stronger compliance monitoring tools, enhanced vigilance against check fraud and cyber threats, and real-time dashboards and technology that are audit-ready.
Change Is a Strategy, Not a Disruption
Staying the course can be costly in a shifting macroeconomic environment like the current one, especially for banks and credit unions facing margin pressure, regulatory scrutiny, and shifting member and depositor behavior. That’s why a majority of financial institutions are recalibrating. Our survey reveals that:
- 57% have made “moderate adjustments” to strategic plans, timelines, and operations.
- Another 18% have made “significant changes,” including restructuring how they plan, invest, or operate altogether.
The nature of these adjustments underscores a strategic shift. According to our survey, nearly half of finance leaders are actively cutting discretionary spending and re-evaluating budgets. Meanwhile, 36% are engaging in scenario planning and financial modeling—tools that help finance teams simulate possible futures and prepare multiple responses.
This means that rather than reacting to volatility after the fact, finance teams in financial institutions are increasingly modeling risks, building mitigation playbooks, and establishing financial safeguards in advance. This is operational resilience in action: not just preparing for the worst, but positioning for the long term.
Tariffs Are Reshaping Financial and Vendor Strategy
Tariff-related uncertainty has become a permanent consideration for many finance teams. The Economic Sentiment Survey shows that 72% of respondents have had to adjust their financial planning because of tariffs—whether through major overhauls or moderate recalibrations.
It doesn’t stop there. These external shocks are catalyzing long-term changes in how institutions source technology, select vendors, and manage third-party relationships:
- 25% of institutions say tariffs have led to “lasting changes” in their vendor strategy.
- 62% are “actively exploring” ways to reduce exposure, even if major shifts haven’t occurred yet.
A near-majority of respondents (48%) rely on a mix of domestic and international vendors, while 31% have at least some level of reliance on international vendors. In a sector where regulatory compliance, service continuity, and cybersecurity are non-negotiable, shifting geopolitical dynamics can introduce significant operational opportunity—and risk.
Finance teams are expanding their operational oversight to include risk modeling, procurement decisions, and vendor strategy. They’re using financial modeling not just for budgets, but for sourcing resilience. By building optionality into their vendor ecosystems, they’re ensuring they can pivot when global circumstances do.
Labor Market Pressures Are Shifting the Workforce Equation
Hiring and retention continue to be a major challenge across the financial institution landscape. The data from our survey shows that:
- 65% of respondents say wage inflation is having a moderate to significant impact.
- 61% cite employee retention challenges.
- 60% are struggling to hire for specialized roles.
These pressures are shifting how teams operate. Rather than mass layoffs, many are pursuing more sustainable adjustments:
- Roughly 43% anticipate minor headcount reductions.
- Just 20% are implementing hiring freezes.
- Only 22% expect significant workforce cuts.
Additionally, 47% of finance leaders say their teams are being asked to do more with fewer resources. This highlights the importance of process optimization, automation, and skill development.
These figures show that rather than cutting talent, financial institutions are making more deliberate choices. They’re rethinking workflows, automating repetitive AP tasks, doubling down on the value of their existing teams, and retaining talent—equipping the employees you already have with better tools to deliver more impact with less overhead.
Technology Is the Anchor of Financial Resilience
The role of technology in enabling resilience cannot be overstated. According to the survey:
- 75% of respondents say technology is “extremely” or “very” important to how they respond to market shifts.
- 89% say that technology investments made during the pandemic—especially in 2020—are helping them navigate today’s uncertainty.
Looking to the remainder of 2025, tech priorities for finance teams are clear:
- 65% plan to invest in AI and machine learning.
- 58% plan to invest in data security and compliance tools.
- 45% plan to invest in advanced analytics and business intelligence.
- 40% plan to invest in cloud-based financial systems.
These choices are grounded in strategic goals. When asked what matters most in their 2025 tech investments, 34% of respondents said they’re prioritizing operational efficiency, while 19% said cost savings and ROI were top of mind.
This highlights that finance teams aren’t investing just for the sake of innovation. By embracing automation and intelligent systems, they’re positioning themselves to better manage risk, meet compliance standards, and do more with leaner teams—all critical for building long-term institutional resilience.
A Stronger, Smarter Financial Future
Perhaps the most telling data point from the Economic Sentiment Survey is this: 77% of financial professionals say they feel “more prepared” today than they did in 2020 at the onset of the COVID-19 crisis.
Leaders in banking and credit union finance are no longer just reacting to challenges; they’re using disruption as a catalyst for strategic clarity, improved workflows, and long-term planning. From AP automation and digital payments to vendor risk modeling and data-driven forecasting, teams are moving faster and with more confidence. This sense of preparedness is the result of better tools, smarter planning, and a mindset of constant evolution. Financial services leaders are turning disruption into direction—and that’s a sign of strength.
One big takeaway from this survey? Operational resilience doesn’t mean avoiding disruption. It means anticipating it and acting with intention.
Ready to act?
At AvidXchange, we help financial professionals in financial institutions do just that by modernizing AP and payment processes with AI-enhanced software and expert support. When your systems are built to adapt, your teams are free to focus on what matters most.