By Lorenzo Cruz
Political advocacy is highly relevant to the banking industry in Wisconsin, as legislative and regulatory decisions significantly impact the operational landscape for banks and other financial institutions. The Wisconsin Bankers Association (WBA) is a key player in this advocacy, working to protect and advance the interests of its members.
Here are some key areas where WBA’s political advocacy is relevant to banking in Wisconsin.
1. Legislative and Regulatory Issues:
• Protecting and advancing the industry’s interests: The WBA actively engages in government relations to influence legislative and regulatory actions, safeguarding and promoting the interests of banks, their customers, and communities.
• Addressing key issues: The WBA advocates on crucial issues like credit card interchange fees, trust code updates, credit union powers, data privacy, and artificial intelligence.
• Navigating budget deliberations: The WBA participates in discussions regarding the state budget that affects areas relevant to banking like the income tax exemption on commercial loans of $5 M or less which is estimated to save the banking industry over $24 M annually.
2. Supporting Pro-Banking Candidates:
• Political action committees (PACs): The WBA utilizes PACs like Wisbankpac to support pro-banking candidates.
• Facilitating conduit contributions: The WBA offers options like the Alliance of Bankers for Wisconsin (ABW) conduit, allowing individual bankers to support candidates of their choice.
• Building relationships with legislators: WBA’s advocacy efforts aim to build relationships with elected officials who understand and support the banking industry.
3. Managing Political Risk:
• Continuous engagement: The association recognizes the need for consistent engagement at all levels of government to manage political risks that could negatively impact their operations and revenues.
4. Educating the Public:
• Issue advocacy fund: The WBA utilizes an issue advocacy fund, allowing banks to contribute corporate dollars that are pooled with other Wisconsin business coalition partners to educate the public about banking and business issues through advertising and public messaging
5. Grassroots Advocacy:
• Encouraging participation: The WBA encourages bankers to participate in grassroots advocacy activities such as Capitol Day, PAC events, and “Take Your Legislator to Work Day.”
• Advocacy Officers: Banks may designate Advocacy Officers to coordinate their advocacy efforts and function as liaisons with the WBA.
6. Relevant Issues Highlighted:
• Interchange fees: Monitoring and influencing possible legislation related to credit card interchange fees.
• Tax parity: Seeking legislative solutions to create a more level playing field for banks competing with tax-exempt institutions.
• Data privacy: Working to protect the GLBA exemption for banks and their affiliates in the data privacy bills.
• Crypto ATM regulations: Protecting consumers against cryptocurrency fraud by providing stronger enforcement provisions and penalties.
• Elder fraud prevention: Advocating for robust measures to prevent and address elder fraud.
• Trust Code modernization: Updating the trust code to remain competitive with other states.
In short, political advocacy is a vital component of WBA’s strategy, enabling the association to minimize risks by shaping the legislative and regulatory landscape, addressing critical and relevant issues, and fostering a favorable environment for WBA’s members and customers.
Thank you to the membership for your time and generous support of WBA’s advocacy efforts. Lastly for those bankers still interested in making a personal contribution to the PAC or conduit to help the government relations team meet WBA’s annual fundraising goal of $300,000, please click here. WBA is currently at 35% of the annual goal.
Cruz is WBA vice president – government relations.