Bauer vows to build on Argue's legacy in Wisconsin

Q: What do you anticipate will be your greatest transition challenge?

We're looking at a much larger organization than I had been running. But, I'm familiar enough with WBA to know the challenges are varied and many. They're legislative and political. We have continuing issues in the industry

with fraud. The Wisconsin Bankers Association and all state associations have been looking at that issue. We introduced FinCrime in Wisconsin; in Arizona we are part of something called FraudNet. At the association level, we have two for-profit subsidiaries where margins are shrinking. Competition is high in our insurance area. For our products corporation we have competition in the training area to provide education services. But we believe with our brand we can provide the best quality at the best price. As I look at things, I see not just one or two challenges, but one or two in the categories I've listed here.

Sixty banks are under audit with the Department of Revenue for their out-of-state investment subsidiaries. Does this create a difficult public relations challenge for WBA?

It does. The mainstream media boils every issue down to sound bites. This is a very complex issue and when the headlines say that Wisconsin banks are avoiding taxes - and some are saying that - it does present a problem. But every issue we face has that potential. We have to educate the public. That is the challenge when you represent an industry that doesn't necessarily have the best image. But the truth is we [banks] provide the fuel that drives the economy.

Do you have specific plans to grow the products and services area?

There'll probably be no radical changes. The for-profit side of the association does very well and I enjoy that aspect of it. When I went to Arizona I got a chance to focus and put a lot of attention to products and services. Trade associations have evolved over time. They used to be essentially fraternal organizations and then evolved to professional trade organizations that offer not only advocacy but an education component. The latest evolution - and WBA has been ahead of the curve on this for years - is the for-profit side where trade associations operate like a business. The demands on an association executive are very similar to the demands of someone running a business.

Talk a little about membership challenges.

Down in Arizona we have a strong, vibrant membership and it is growing. Here in Wisconsin it's the same. There are always membership challenges. You can never take membership for granted and you have to make sure you're very solicitous of what members need from the association because change is constant. Five years ago, fraud was not the No. 1 issue. Credit unions were. But even today, it's probably fraud and competition because banks face it not only from credit unions but from others as well. You have to be out there with your membership as much as possible. There is no substitute for sitting down in a banker's office where they feel comfortable, where they feel in control, so they can tell you what they think are the largest challenges facing their particular institution and what they think the association can do about them. I intend to do that. I've always enjoyed traveling around the state.

What's the state of your relationship with Daryll Lund and the Community Bankers of Wisconsin?

Daryll is a friend of mine. When I was with government relations, he and I got along very well. Our associations have had a very good relationship. I expect that to continue.

How will your leadership style differ from Harry Argue's?

I consider Harry to be a mentor. I have tried to adopt many of his approaches to management and administration. But I am very different. I'm probably a bit more excitable, which has served me well at times. I don't think that the staff of WBA or the bankers will see a radical change. I don't think radical change at the association is necessary. A way for me to honor Harry's legacy is to continue it.

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Kurt Bauer, will become Wisconsin Bankers Association executive vice president & CEO on March 22 when the organization's current leader, Harry Argue, officially retires. Bauer spent 10 years with the WBA, in communications and government relations, before becoming president & CEO of the Arizona Bankers Association 5 months ago.

North*Western Financial Review's Jackie Hilgert interviewed Bauer at the WBA Executives Seminar.