Banks are no strangers to discipline.

Capital ratios matter. Margins are watched closely. Expenses are scrutinized line by line. In an environment shaped by regulation, interest-rate pressure, and heightened competition for both customers and talent, leaders are expected to be prudent stewards of every dollar.

That discipline is necessary.

But it also raises an important question—one that banking leaders should revisit regularly:

Is leadership development a discretionary expense, or is it essential infrastructure?

Why Leadership Development Is Often Misclassified

In banking, leadership development is sometimes grouped with “soft costs”—training, coaching, or professional development that appears optional when compared to technology investments, compliance requirements, or branch operations.

On the surface, that categorization feels logical. Leadership development doesn’t show up as a line item tied directly to loan growth, deposit acquisition, or fee income. It doesn’t produce i...