Roxy Ostrem, chair of the boardof directors at Ventura County Credit Union, will never forget apivotal moment during childhood that launched her lifetimeconnection with the credit union industry.

“I was in need of glasses, but my parents had divorced and mymother could not afford them,” recalled Ostrem, who joined theboard at the $654 million cooperative in Ventura, Calif. in2000.

“My mother worked for the County of Ventura and she tried to geta bank loan, but because she was a single mom and did not makemuch, they turned her down,” she explained. “Fortunately, someonetold her about the newly-founded Ventura County Credit Union andsuggested she go there.”

Not only did her mother get the loan, she also regained herdignity, Ostrem added.

“The folks at the credit union made her feel like a human, awoman who now can help her daughter get what was needed,” shesaid.

Ostrem's mother, the late Patti Shobe, served on VCCU's boardfor over 30 years, including two terms as chair.

One big difference between VCCU and most Fortune 500 boards isthat the credit union has a high level of gender diversity, Ostremadded.

“Women have always made up at least half of our board,” sheexplained.

That's a rarity, according to recent studies. Last year atFortune 500 companies, women held only 16.9% of board seats, and10% of companies had no women serving on boards, according to the2013 Catalyst Census.

“Shareholders beware: a company with no women at the top ismissing one of the biggest opportunities in the marketplace today,”Ilene Lang, CEO/president of Catalyst, a New York-based nonprofitfounded in 1962 to expand opportunities for women and business,stated in a press release announcing the census results.

Recent studies have indicated that companies with femaleboard members and/or senior managers typically experiencegreater return on sales, equity and invested capital.

Plus, experts say, women provide a different perspective in theboardroom, which can provide a more balanced approach to strategicplanning, governance and risk management.

“Diverse business leadership and governance are correlated withstronger business performance, employee engagement and innovation,”Lang said.

Since women in the U.S. are responsible for 80% of decisionsrelated to consumer purchases, female board members can help drivedevelopment of new products and services, according to 2020 Womenon Boards, a national campaign to increase the percentage of womenon U.S. company boards to 20% or more within the next sixyears.

Read more: Credit union groups press for more boarddiversity …

Within the credit union industry, efforts are underway toincrease board diversity.

“Boards are most effective when attuned to the needs and goalsof all their members and when they reflect the full range ofexperiences and perspectives of those members,” said NCUA ChairmanDebbie Matz.

“I strongly encourage greater diversity—including women,minorities, and other under-represented groups,” Matz continued.“Increasing diversity will promote smarter business practices,expand the pool of future leaders, build a more effectiveworkplace, and inspire greater confidence among members.”

At Ventura County CU, having a diverse board has provided manybenefits, Ostrem said.

“If a board can be made up of both men and women, you get a goodbalance of emotion, different perspectives and practicality,” sheadded.

Female board members can serve as a catalyst to advance thecredit union philosophy and create positive social change, expertssay.

“I passionately believe the difference women make as leaders andin the boardroom will change society, poverty levels for women andfor children in the U.S., which makes this a critical mandate,”said SusanMitchell, CEO of Mitchell, Stankovic and Associates of BoulderCity, Nev.

Mitchell, who was named as one of Credit Union Times'Women to Watch 2012 Industry Supporters, serves as chair of theWorld Council of Credit Unions' Global Women's Leadership Network,which has launched a strategic initiative to encourage genderdiversity.

“Leadership within the credit union industry is transitioningand women now represent a significant influence as board membersand CEOs of credit unions, CUSOs, leagues and other organizations,”Mitchell explained. “However, as the transition of retirementscontinue, will there be enough women in the pool of candidates?Will traditional networking efforts be enough?”

Mitchell contends it is vital for credit unions and affiliatedgroups to entice more women to serve as volunteers in leadershiproles.

“This serious issue must be addressed to improve credit unionsuccess and build for the future of the industry,” she said.“Having an initiative to recruit women to the board will create amore dynamic volunteer group within the credit union and within theindustry.”

Providing women with forums for networking and brainstorming aretwo ways the credit union industry is spearheading change, shesaid.

Through collaboration, many female board members are learninginnovative ways to serve existing members and reach new ones. Forexample, Ostrem encouraged VCCU to pilot a mobile banking outreachprogram that utilizes handheld technology to bring credit unionservices to agricultural laborers working in the fields atBoskovich Farms, a large California food producer.

Ostrem, who is the food safety compliance manager at BoskovichFarms, suggested implementing the program after attending anengagement program for members of WOCCU's Global Women's LeadershipNetwork, where she heard about the success of a similar program inMexico.

Read more: Financial institution boards lag indiversity …

Despite increased diversity on many boards, some financialinstitutions have a long way to go, according to Mitchell and otheradvocates of gender diversity.

“Women have an insignificant presence at the executive level incorporations in all industries, but this phenomenon is morepronounced in financial institutions,” said Teresa Freeborn,president/CEO of the $810 million Xceed Financial Credit Union inEl Segundo, Calif.

Freeborn is chair of the California Credit Union League's boardof directors, immediate past board chair of CUES and an inauguralmember of WOCCU's Global Women's Leadership Network.

At Xceed, the board includes five women and four men, while theexecutive staff includes four women and one man, said Freeborn, whowas named one of Credit Union Times' Womento Watch in 2011.

Many factors contribute to the lack of gender diversity amongcredit union boards, Freeborn said, including:

• Lack of requisite corporate experience for many women.
• Low number of successful female role models.
• Inadequate mentoring and networking opportunities.
• Discrimination (or unconscious bias) against women.
• Stereotype and pre-conceptions regarding women's roles andpositions.
• Gender behavior traits, whereby women tend to undervalue theirown skills, experience, and achievements.
• Corporation selection criteria.
• Failure of senior leadership to assume accountability for womenadvancement and board diversity (understanding the businessand morale rationale for gender diversity as it relates tocorporate performance and moral significance within the broadersociety.)
• Lack of flexible work practices to assist with the juggling ofwork and personal life, particularly child rearing (time ofmeetings, travel requirements, etc.)

Fortunately, there are many possible solutions for enhancinggender diversity in the boardroom. Freeborn offers thesesuggestions:

• Improve recruitment and promotion processes and criteria toincrease the number of women firstly at the executive level – andthen encouraging credit unions to proffer individuals from theirown managerial ranks to industry boards.
• Enhance mentoring and networking opportunities.
• Make room for women directors by expanding the size of theboard and/or establishing mechanisms to increase director turnover(terms limits and performance assessments.)
• Involve diverse directors in the board search process, expandthe criteria to ascertain qualified board members, and establish adesired composition of a slate of nominees for consideration.
• Raise awareness and education around the subject of unconsciousbias and its detrimental effects.
• Promoting flexible work practices (remote attendance atcommittee and board meetings, reducing the number of days forannual planning conferences, avoiding weekend meetings.)

“Our industry is comprised of many amazingly competent womenjust waiting to be called into action,” Freeborn concluded. “Mostof the time, boards are just not aware of the issue. Once theeducation takes place (especially the part about why it makes suchgood business and moral sense to reflect gender balance at theboard table), the willingness to 'fix' the inequality isenthusiastic.”