🔒On the Record: Fraud prevention, housing top of mind for new head of Maine bankers group

Aaron Stetter, previously with the Independent Community Bankers of America in Washington, D.C., succeeded Jim Roche as president of the Westbrook-based Maine Bankers Association. Mainebiz checked in with Stetter to find out more about his background and plans as he settles into his “dream job in a dream state.”

Mainebiz: What lessons from your previous job still guide you today?

Aaron Stetter: I joined the Independent Community Bankers of America in September 2005, but I moved into government relations as a lobbyist in the summer of 2008, just as the financial crisis was intensifying. Fannie Mae and Freddie Mac were being placed into conservatorship, the first TARP [Troubled Asset Relief Program] vote had failed, and the markets were in freefall. It was a hard time to learn the business, but a valuable one. What I learned was simple: stay curious and put in the work. I read everything I could about bank policy, even if I didn’t fully understand it, and I asked a lot of questions.

MB: What are your first impressions of Maine’s banking sector?

AS: My first impression is that Maine’s banking sector is more diverse than it may appear at first glance, with institutions of all sizes and business models. What stands out most to me about Maine’s community banks is their staying power and resilience. That is part of what attracted me to this role.

MB: What do you hope to learn during your statewide listening tour?

AS: I hope to come away with a better understanding of each bank’s unique needs for the association now and in the future. That understanding will help the association provide the right resources and advocacy so the industry can continue to thrive.

MB: What are your plans for reshaping the association’s committee structure?

AS: My goal is to simplify and streamline the committee structure while deepening individual banker engagement. If we get that right, the association will be more focused, more responsive and more useful to our members.

MB: What do you see as the biggest challenges facing Maine’s banking sector today?

AS: Maine’s aging population puts pressure on the labor force and on the small businesses that depend on it, as business owners wrestle with succession planning. An older population also heightens the risk of elder financial abuse, and fraud more broadly remains a challenge for the entire banking industry. Housing is another; high cost and low supply are a drag on economic growth.

MB: And the greatest opportunities?

AS: Small business succession planning through education and awareness of Employee Stock Ownership Plans, or ESOPs. There is also a real opportunity in wealth management services for retirees who decide to spend their time here. On housing, we should continue to promote policy solutions like the recently passed 21st Century ROAD to Housing Act. Housing policy is multifaceted, and no single policy will be a silver bullet, but this new law is a step in the right direction.

MB: Do you expect more consolidation in the banking sector?

AS: I will not speak for Maine specifically, but yes, I expect a consistent level of industry consolidation. In my 20-plus years in community banking, the drivers have been consistent: the challenge of effective succession planning and the search for economies of scale to manage the growing burden and complexity of regulatory compliance.

MB: How much room is there for new entrants in Maine’s banking sector?

AS: If a bank is considering entering Maine, they should give me a call so we can talk about membership.

MB: What are your regulatory and policy priorities?

AS: At a macro level, I would point to three things: fraud prevention; reining in non-bank actors, particularly in the crypto sector, that want to operate like banks without safety and soundness or consumer protection standards; and finding ways for the banking sector to play a more meaningful role in addressing the state’s housing shortage.