The new president of the Maine Bankers Association shares his take on the health of Maine’s banking sector and what he views as the industry’s biggest challenges.
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Last August, Jim Roche took over as president of the Maine Bankers Association after 17 years at the helm of the Business & Industry Association of New Hampshire. Mainebiz caught up with the Minnesota native to find out more about his plans and to get his take on Maine’s banking sector so far.
Mainebiz: As a newcomer to banking, what fresh perspective do you bring to the role?
Jim Roche: A fresh set of eyes. Sometimes, when we’re in the middle of something we know exceptionally well, we fail to see new opportunities, new paths, new ways of doing things. Having no preconceived notions or long-held assumptions can be a great advantage.
MB: You mentioned inward and outward strategic planning sessions at the Maine Bankers Association. What will those entail?
JR: We’ve hired an outside consultant to take staff and the board through separate strategic planning sessions. These sessions will look at our strengths, weaknesses, headwinds and new opportunities for serving our members even better. The ultimate goal is to enhance our value to those who underwrite our work.
MB: What’s your take on the health of Maine’s banking sector?
JR: COVID-19 has been very challenging to manage through, but overall Maine banks have performed remarkably well. Banks work very hard to develop trusting relationship with their customers. Consequently, banks are well-positioned to help business and consumers emerge successfully from adverse economic impacts wrought by the pandemic.
MB: What do you see as the biggest challenges for Maine banks today?
JR: Hiring new talent continues to be a challenge for banks. Another challenge is the regulatory climate. The fact is banks are among the most regulated enterprises in the United States. While regulation ensures a sound and trusted banking system, it also puts banks at a competitive disadvantage to competitors like financial service technology firms, which are comparatively underregulated. Banks are looking for regulatory parity in this regard.
MB: To what extent is rural banking access — or lack thereof — a concern?
JR: Banks serving customers in rural areas have a dual challenge — continuing to provide easy access to customers who prefer face-to-face contact, and investing in the latest, safest technology to serve customers who prefer using technology (e.g. online deposits, bill paying, etc.). The technology challenge is enhanced in areas with poor broadband access. Overall, banks serving these areas have risen to the challenge as evidenced by deposit growth.
MB: How can Maine banks recruit a younger, more diverse workforce given the demographics and tight labor market?
JR: Banks, like all economic sectors, are challenged to find younger talent. Notwithstanding Maine’s population growth during the pandemic, we remain one of the oldest states in the country. The fact is, young people are still drawn to the bright lights of Boston, New York and elsewhere. The efforts of Live + Work in Maine and others to focus on both attracting talent to the state and keeping what we already have here is very important. MBA itself is launching a digital campaign, ‘Find Yourself in Banking,’ to highlight all the great career opportunities this field has to offer. There is no quick fix to this challenge, but a sustained focus on talent recruitment is very important.
MB: Finally, how will Maine banks fare in a higher interest-rate environment?
JR: It’s helpful to remind ourselves that banks are intermediaries, accepting deposits from households and businesses in their communities, and providing credit to others in need of funding. When interest rates change, deposit rates change and so do loan rates. The net impact on bank profitability depends on multiple factors. Banks tend to be focused on stability of earnings, and at the end of the day, this is driven by the economic growth in the community. Maine banks have been a source of strength for the Maine economy, and I’m confident that will continue in 2022 and beyond.
