Several years ago, I wrote about the value of trade associations in the consumer finance industry. As we are in the height of the season, I think that this is a good time to remind ourselves of how trade associations protect the interest of association members.

A fundamental value of a trade association is to make certain that legislatures and Congress advance legislation that promotes the interests of the membership. And, the flip side of this, is to make certain that policy makers “do no harm” in passing laws or adopting regulations that are harmful to the industry. As we know, there are serious consequences that follow passage of law and regulation. It is the job of trade associations and government affairs professionals to make certain that the consequences are not unintended. 

Trade associations also offer an education opportunity for their members. We live in a complex and ever-changing world. It is important that businesses have the tools to keep up with developments in the services and products that may be offered to customers. Trade association meetings provide a platform for vendors and service providers to show their wares to the membership. The consumer finance industry in particular enjoys the support of software providers, insurance companies, accountants, collection servicers, lenders, printers, lawyers and credit bureaus. Trade association meetings are important times for these vendors and finance companies to come together. 

Associations also offer a window to learn the best practices among their members. Members may not share trade secrets since they are competitors. However, association meetings provide a platform and forum for learning new ideas and approaches that can keep members competitive. 

Finally, membership in a trade association allows for members to stay connected on a personal level. The comradery that comes from sharing meetings, meals and parties together cannot be overstated. In my attendance at trade association meetings and conventions over the years, I have observed great relationships and friendships established. These can prove exceedingly beneficial. The relationships often provide a resource for growing and expanding one’s business—or when the time comes, even selling one’s offices. This fact of trade association friendships should never be underestimated.

Practice Pointer: Be a good and regular attendee of your trade association’s meetings. Intentional meetings are the best source for ideas that can improve your business opportunities. 

Please Note: This is the two hundred-nineteenth blog in a series of Back to Basics blogs, in which relevant and resourceful information can be easily accessed by clicking Dentons - Consumer Finance Report.