Bank Boards Face Pressure to Modernize Oversight and Recruitment

The 2026 Governance Best Practices Survey, released by Bank Director and sponsored by Bradley Arant Boult Cummings LLP, reveals that 44% of boards now include members with specific M&A experience—a 10-point jump from the previous year. This pivot comes as regulatory approvals quicken and institutions seek to capitalize on improved market valuations.

Artificial intelligence remains a polarizing challenge for directors. While 21% of boards have added dedicated AI expertise to their ranks and 60% have updated their oversight policies, a significant 21% of respondents admit to having no formal oversight of AI risks at all. Current adoption of AI tools remains limited, with only a small minority using the technology for routine administrative tasks like drafting minutes or compiling board books.

Beyond technology, the industry faces a looming leadership transition. With 57% of respondents expecting director retirements through 2027, the traditional reliance on personal and professional networks for recruitment—currently favored by 83% of boards—may prove insufficient. Emily McCormick, vice president of research at Bank Director, warns that boards must move beyond standard recruiting channels to secure the diverse skill sets required for future strategic planning. Current practices show that while 87% of boards permit virtual attendance, only 39% conduct formal annual assessments, suggesting that the drive for modern governance remains a work in progress across the sector.