Kathleen Murphy, President & CEO, Massachusetts Bankers Association

In an interview with Invest:, Kathleen Murphy, president and CEO of the Massachusetts Bankers Association, discussed MBA’s recent milestones, including a technology overhaul and innovative talent retention strategies, as well as advocacy efforts to bolster financial literacy among Massachusetts students. “Looking ahead, we are particularly focused on legislative proposals to mandate financial literacy as a high school graduation requirement in Massachusetts,” she said.

What were some of the key milestones and achievements for the association over the last year?

Over the past year, the Massachusetts Bankers Association has embarked on several significant initiatives under a new strategic plan that extends through 2026. A major highlight was the complete overhaul of our technology infrastructure, which involved upgrading a 25-year-old CRM system, revamping our website, and launching a new brand identity on January 18. This comprehensive update required a meticulous two-year preparation to ensure the integrity and utility of our data systems, culminating in positive feedback from our members.

Additionally, we recently held our convention where we continued to promote our new brand story, developed in partnership with Financial Marketing Solutions. This rebranding reflects our commitment to supporting our member banks in their community roles, emphasizing leadership and service.

Another area of focus has been on talent attraction and retention, a critical issue not only for our industry but also broadly across Massachusetts. We are dedicated to enhancing how we tell our industry’s story, improving perceptions, and drawing talent to banking.

What are the strategies for talent attraction and retention outlined in the organization’s strategic plan?

Attracting and retaining talent emerged as a priority through feedback, including a comprehensive survey of our members. We’re approaching this challenge on multiple fronts: through targeted training and educational programs that we conduct, which number around 300 annually, available to over 70,000 employees across our member banks in Massachusetts and New England.

A significant aspect of these efforts is career pathing, particularly succession planning, which is vital for continuity in our industry. We’re ensuring that our programs support career development from within, which studies show tends to yield more successful outcomes than external hiring, especially in senior roles.

Moreover, we are actively engaging with institutions of higher education to elevate the banking industry’s profile beyond its traditional perceptions. By showcasing the multifaceted roles within banking, from technology to human resources, we aim to attract a diverse and skilled workforce ready to meet the evolving needs of the modern banking landscape.

What role do you see technology continuing to play in the banking industry, and how can MBA leverage tech in its workforce development programs?

Banks have long been early adopters of some technology. The ATM and digital banking are examples but banks are also using technology such as AI-driven chatbots, cloud computing and advanced cybersecurity measures to service and protect its customers. We continue to explore how emerging technologies and artificial intelligence can enhance banking services. We’ve initiated multiple workforce development initiatives to ensure the industry keeps pace with these technological advances. For instance, we’ve offered a bank technology school, a Technology Summit and an Innovation Summit as a means to keep our members abreast of the rapidly changing environment.

An exciting development is our discussion with community colleges to establish a Community Banking degree leveraging the state’s “Mass Reconnect” program, which offers free community college education to residents aged 25 and older. This initiative aims to prepare students for immediate employment in banking upon graduation. We have held careers fairs and information outreach sessions to educate students. faculty and college career officers about opportunities in banking. 

Moreover, we’ve launched our fourth cohort of the Credit Analyst Apprenticeship Program. This program includes 150 hours of classroom training and 2,000 hours of on-the-job training through mentorship in banks. The apprenticeship addresses a critical industry need by preparing participants for roles in commercial lending, starting from credit analysis to potentially advancing to senior lending positions.

The state of Massachusetts supports these efforts by offering a $4,800 tax credit per apprentice and grants to help cover the costs of apprenticeship for our members. These comprehensive educational efforts and partnerships are pivotal in cultivating a skilled workforce ready to meet the challenges of modern banking.

Lastly, we continue to foster innovation within the industry through our formal partnership with the Mass Fintech Hub, promoting the integration of fintech solutions and enhancing our members’ technological capabilities. This partnership underscores our commitment to advancing industry knowledge and adaptability in an increasingly digital banking environment.

What initiatives does MBA have to engage emerging leaders within the banking industry?

This year, we are prioritizing the engagement of emerging leaders within the banking sector. Recognizing the pivotal role of the Massachusetts Bankers Association in the success of our member banks, we have initiated a strategic effort to ensure that as individuals ascend within their organizations, they recognize and value our support. A key component of this strategy is a new steering committee, which is dedicated to enhancing engagement with these rising leaders.

Additionally, we offer a comprehensive and immersive learning experience at the New England School of Financial Studies, conducted at Babson University. This program includes two distinct weeks of residency and is designed for bank employees identified for leadership advancement, providing them with a wide-ranging understanding of various banking operations, from finance to lending. The program culminates in a technology-based bank simulation, where participants apply their learning in a practical, decision-making environment. These initiatives are part of our broader strategy to foster leadership skills and strengthen industry networks. Note: two years of residency can be interpreted to mean they reside there for two years.

How does your approach to diversity, equity, and inclusion influence your talent attraction and retention strategies?

Our commitment to diversity, equity, and inclusion (DEI) is integral to all our initiatives, particularly in talent attraction and retention. We continuously strive to create pipelines that introduce diverse perspectives and backgrounds into the banking industry. 

 We support our members in their benefits offerings through our comprehensive health and dental solutions through our Group Insurance Trust, which serves over 80 banks in Massachusetts.

These robust benefits services are provided alongside innovative programs like Hinge Health, which utilizes technology to manage chronic conditions such as back and knee pain, and a cardiovascular and diabetes management program. These initiatives not only support the physical well-being of our members’ employees but also contribute significantly to reducing healthcare costs.

With around 10,000 subscribers and impacting approximately 23,000 lives, our benefits programs are crucial for helping our member banks attract and retain a talented workforce. We also engage with key leaders and human resources professionals to ensure our efforts align with the evolving needs of the industry. This collaboration underscores our focus on promoting the banking sector as a dynamic and inclusive field for career development.

What are the legislative challenges and how is the association addressing them?

Legislative advocacy remains a cornerstone of our strategy at the Massachusetts Bankers Association, particularly as we navigate the current two-year legislative session which concludes in early January 2025. Our advocacy efforts have seen significant developments, including a successful push to double the state estate tax exemption from $1 million to $2 million, which eliminates the previous tax “cliff” and helps retain residents in Massachusetts. Additionally, the permanent adoption of remote online notarization, which was initially an emergency measure during the pandemic, marks another legislative victory that simplifies document processing for our clients.

Looking ahead, we are particularly focused on a legislative proposal to mandate financial literacy as a high school graduation requirement in Massachusetts. This initiative, which we have strongly advocated for over many years, aims to equip students with essential financial skills necessary for both higher education and entering the workforce.

Our legislative efforts are supported by a three-pronged approach: our advocacy team actively engages with legislators and testifies in committee hearings; we leverage the relationships our members have with local legislators to reinforce the real impact of policy decisions on local communities; and our political action committee supports candidates who demonstrate a willingness to engage with and understand our industry. This multifaceted strategy ensures a comprehensive advocacy effort at both state and national levels.

Moreover, our focus extends beyond legislation to the regulatory landscape, where we address new challenges including those posed by over 5,000 pages of new regulations issued last year. Our response includes submitting detailed comments on proposed regulations and preparing our members for compliance, particularly with significant changes like those seen in the Community Reinvestment Act.