Credit Unions Must Modernize Board Governance

Meeting of credit union board members.

In today’s complex financial services industry, the governance of credit unions must be modernized to reflect relevant business practices and build organizational value for members. Strategic representation at the board level requires more than attending monthly meetings; it is about positioning the credit union to serve a diverse and changing field of membership. There’s so much more to know – from technology to regulation to business analytics. Engaged volunteer board members will strive to be aware of these matters at a high level, and how they can affect the credit union while refraining from getting involved in the operations of the institution. Boards should be looking on the horizon to the financial services landscape and simply guiding the credit union toward a destination that changes the lives of their members today and into the future.

High-performing boards shape the direction of the credit union through its mission, strategic plan, purpose statement and critical policies. If your credit union’s mission is to be the community’s financial institution, then the board and management should be reassessing policies that stand in the way so the board can approve changes. Management should also be ensuring a seamless process is in place for new account openings, whether it’s reducing paperwork, simplifying the legalese or making digital options available.