Meetings give Minnesota bankers political update

Northwestern Financial Review, Oct 15-Oct 31, 2003 by Bengtson, Tom

The Minnesota Bankers Association used its annual September series of seven district meetings to update members on legislative challenges, discuss competition, and urge them to make the most of local media opportunities. The meetings began in Bemidji Sept. 3 and concluded in Benson on Sept. 18.

About 35 bankers attended the Twin Cities meeting for Districts 3 and 4 in St. Louis Park on Sept. 11. MBA President Paul Pieschel, Farmers and Merchants State Bank, Springfield, Minn., elaborated on the theme of involvement he launched at the association's convention 10 weeks earlier. "It is very critical that we become involved in the political process," he said. "We are under fire from credit unions and other competitors. It is important that we stand up and be counted."

Steve Johnson, MBA's director of legislative affairs, echoed that message. "Grass roots involvement is urgent," he told the bankers. "We had a record 122 people at our bank day event last February at the Capitol, but there are 470 banks in the state. We should be getting 500 people."

Johnson explained that MBA is in the process of redesigning its web site to make it more useful as a tool for grass roots action on political issues.

Pieschel said bankers typically are too quiet on political issues. "Rep. Michael Oxley told a group of us at an ABA meeting in July that for every letter they get from a banker, they get 20 from credit union people," Pieschel said.

Two Minnesota legislators stopped into the meeting to give their impressions of the legislative environment. Sen. Geoff Michel and Rep. Erik Paulsen communicated optimistic messages about prospects for the state's business interests.

"You have the 'perfect storm' of state government," Michel said. "You have a friendly governor in Tim Pawlenty. You have a respected businessman in Commerce Commissioner Glenn Wilson. And, you have a probusiness legislature."

He said that even though Democrats hold a slight majority in the Senate, many Democrats have pro-business interests, making the Senate overall friendly to business interests, Michel said.

"There is a lot of new blood in St. Paul," Michel said. "You can get a lot done. Don't take it for granted that you have to be on the defensive.

"You have a lot more people in St. Paul who understand your issues, and these are people who want to help you," Michel said. "My hope is you will begin to get calls from people in government asking 'what do you need to grow and be successful?'"

"I see bankers having a lot of success stories," Paulsen said. "I'd look to you to ask where you want to fit in."

Both lawmakers noted the 2004 session is scheduled to begin Feb. 2 and last only three months, a schedule they hope to stick with. "I don't see a reason to stay more than three months," Paulsen commented.

Paulsen said he is concerned the economic recovery may not be providing a sufficient number of new jobs. "I am concerned about a jobless recovery. I think the legislature will be looking very seriously at jobs."

Debra Hurston, MBA's director of communications and community affairs, encouraged bankers to work with local reporters. She gave suggestions for communicating key messages. She said bankers should ask reporters questions about the focus of their story, when it will be published and who else the reporter is talking to. With this information, a banker can give answers more relevant to the story. If caught off guard by an inquiry from a reporter, MBA CEO Joe Witt encouraged bankers to get back to the reporter in an hour or so, giving the banker time to prepare informed answers.

The meeting concluded with a presentation from Ron Buck of the Solonis Corp., who told bankers "silent competitors are eating away at bankers' market share." He encouraged bankers to explore customer relationship management strategies that will allow them to identify their best prospects. He warned that new competitors will market in ways that are unconventional for financial services companies.

By Tom Bengtson