Trade associations refer to the informal groups to which individual banks or bankers belong in order to promote the industry’s viewpoint with the public and to educate bankers on the latest trends affecting the industry.
Trade associations are typically nonprofit organizations formed by firms in the same industry to collect and disseminate information, offer legal and technical advice, furnish industry-related training and marketing materials, and provide a forum for the people in the industry to network.
To accomplish these goals, many trade organizations organize annual meetings and trade shows. For example, the Internet Society (ISOC) is a professional trade association with more than 80 organizations and 28,000 individual members. Members of the association meet in local chapters and come together once a year for an annual conference to discuss issues related the Internet.
For many people, the biggest advantage of belonging to a trade association is the opportunity to network with industry peers. This is one reason busy CEOs and entrepreneurs are willing to donate to serve on the board of directors of their respective associations. Serving on the board or on an association committee gives them the opportunity to exchange ideas with their peers.
Recognizing the benefits of networking, some associations have even created online forums. For example, the American Booksellers Association (which restricts its membership to independent bookstores, thus eliminating the potential divergent interests of bookstore chains like Borders and Barnes & Noble) hosts a number of password-protected online forums, where its members can ask each other questions and collectively brainstorm the best ways to compete against big-box competitors. Another example is the Craft & Hobby Association. Along with providing its members traditional trade association benefits, it offers business-building seminars, workshops, and social events for its members.