10 JULY / AUGUST 2017 COVER STORY Tom FITE Indiana DFI director We’ve been around for a long time,” says Thomas C. Fite of the Indiana Department of Financial Institutions (DFI), which he serves as director. “We regulate a plethora of organizations,” Fite continues. “Basically whenever credit is being extended, that falls under our purview.” The DFI was formed in 1933 by the Indiana Financial Institutions Act in order to bring regulatory supervision over commercial banks, trust companies, private banks, savings banks, building and loan associations, credit unions and finance companies incorporated under Indiana state law. While similar organizations were formed nationwide as a response to the Great Depression, the Indiana DFI has a unique history, as its formation was influenced by the efforts of Herman B Wells,1 the legendary late chancellor of Indiana University. In the early 1930s, Wells completed a study showing a need for a state regulatory agency with greater discretionary authority; results of the study led to legislative action that created the DFI. Since its formation, the scope of the Indiana DFI has widened to include supervision of other types of financial-transaction organizations. These include pawnbrokers, industrial loan and investment companies, money transmitters, check cashers, budget service companies, rental-purchase agreement companies, and licensees under the Uniform Consumer Credit Code and Indiana Small Loan Act. Tom Fite joined the DFI as a bank examiner in 1998. For the next 15 years, he held responsibilities in field examination and regional supervision, then in 2013 was named deputy director of the depository division. In January 2016, Fite was appointed director of the DFI by then-Indiana Gov. Mike Pence. Fite is a graduate of Ball State University and earned an MBA from Indiana Wesleyan University. Hoosier Banker recently interviewed Director Fite about the role of the Indiana DFI in regulating the safety and soundness of Indiana financial institutions. What is the regulatory benefit of the DFI’s cordial relationship with the banks of Indiana? “Although we maintain a strong presence of professional skepticism, we are also in many ways on the same team as bankers. Regulators and bankers share the same goals of promoting financial strength, and avoiding financial crises and corrections. Bankers understand that we have a job to do, and that we’re both trying to get to the same place at the same time. “I attend the Indiana Bankers Association Mega Conference, the Annual Convention and other events to meet with bankers in a nonexamination setting. I try to speak one-on-one with as many bankers as possible during these events. The subsequent benefit is that bankers feel more comfortable contacting me when issues arise within their institutions, and we can have a non-abrasive, matter-of-fact discussion, even when my regulator responses are not favorable. The mutual goal is to resolve problems quickly and thoroughly. “Another benefit to visiting with bankers is that it makes them comfortable to proactively reach out to us. So if a bank is looking to introduce a new program or product, they know they can come to the DFI and say, ‘We’re thinking about this new product. Can you tell us if there are regulatory problems with it?’ “We’ll point out that there might be a financial risk concern or a “
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