The demands on credit union board management have never been greater. Today, boards have significant fiduciary responsibilities, need to govern substantial financial institutions, and manage capital risk.

The article below aims to show board members how to modernize governance, facilitate board meetings, and improve collaboration with the help of board portal software for credit unions and banks.

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Credit union board management

Before learning how board meeting software helps credit unions, let’s focus on what role a board member and a committee play in credit union governance. 

What is a credit union?

A credit union is a nonprofit financial organization owned by individuals who use its financial products. Credit union customers can access similar services as offered by a traditional bank, including credit cards, savings accounts, and loans. However, there are certain differences.

BankCredit Union
StructureProfitNon-profit
Membership required NoYes
Products and services A wide rangeLimited

Responsibilities of credit union board members

Members elect board directors to manage the credit union to represent their best interests. More specifically, board members have to:

  • Provide general direction and control of a credit union
  • Manage the affairs of the credit union fairly and impartially
  • Understand finance and accounting practices
  • Manage the board operations in accordance with the Federal Credit Union Act and similar laws and regulations

Importance of risk management for credit unions

Credit unions face a variety of internal and external risks. 

External risksInternal risks 
Natural disastersInternal fraud
Exchange ratesRegulatory non-compliance
CybercrimeData breaches
Interest ratesLegal risks
Loss of funds due to theft

According to a Black Kite study, cybersecurity vulnerabilities rank among the most problematic issues for credit unions as they’re fraught with financial losses.

Large credit unionsSmall credit unions 
Direct attacks on credit unions$1.2 million$190,000
Potential third-party attacks through credit union vendors $1 million $300,000

The statistics below reveal the reasons why most credit unions are at high risk of data breach or systems hack:  

  • 66% of credit unions and 88% of their vendors lack email security
  • 48% of credit unions and 58% of their vendors have critical vulnerabilities due to out-of-date systems

However, it’s possible to mitigate risks. Here’s how:

  1. Define key risk indicators (KRIs). KRIs predict potential risks that can negatively impact businesses. Conducting regular reviews of KRIs and indicating warning signs can significantly reduce potential risks.
  2. Have a disaster recovery plan (DRP) in place. DRP is a document describing how an organization can quickly resume work in the event of a crisis or disaster.
  3. Keep up with regulatory changes. Credit union regulatory compliance is continually changing. For example, in 2021, it shifted towards increased enforcement and stricter examinations. That’s why it’s essential that credit unions update policies and procedures to reflect new requirements.
  4. Implement board portal technology. Board management software helps credit unions prevent cyberattacks and mitigate risks due to numerous access, document, and infrastructure security features. 

Top reasons to use board management software for credit unions

“Credit unions are entrusted with the livelihoods of their members. With great trust comes great responsibility to mitigate cybersecurity vulnerabilities, whether they are internal or via a third party.”

Bob Maley, Chief Security Officer, Black Kite

Board management software is an easy-to-use tool that helps credit unions mitigate cybersecurity risks. It also allows board administrators to perform their duties faster, better, and easier.

Let’s have a look at other reasons why credit unions are using board portal software.

Real-time secure collaboration 

Thanks to board portals, board members can:

  • Upload, store, and distribute confidential information conveniently and securely
  • Communicate in chats
  • Have discussions in threads

Higher productivity

Board portal software for credit union allows users to:

  • Leave comments
  • Assign tasks
  • Receive news and updates

Straightforward access

Board portals function 24/7, which lets board members: 

  • Access and share board materials securely from any device
  • Take advantage of board portal mobile apps — prepare for the next board meeting, send reminders, receive approvals, etc.
  • Conduct a virtual board meeting from anywhere

Professional customer support 

Board portal providers offer professional client support that is:

  • 24/7
  • Multilingual 
  • Multichannel

Eco-friendliness

Board portal users reduce their environmental footprint because they can:

  • Conduct a paperless board meeting and save resources spent on printing paper documents 
  • Save on travel expenses by working remotely

If you want to take advantage of all those benefits and make board management simplified and more efficient, try a board portal.

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Board portal software for credit unions

Here are the main tools that online board portal providers offer to organizations.

FeaturesFeatures
Security featuresMulti-factor authentication to confirm users by requiring an email address, password, and a verification code sent to a secondary deviceRole-based permissions to control which users can access board materialsMulti-level encryption to protect data against cyberattacks
Meeting management featuresScheduling to pick the date and time and assign participantsAgenda builder to choose a template, attach files, and share them to board members Minutes drafts to generate meeting minutes quickly and share them with the meeting participantsCalendar and reminders to notify board members of scheduled meetings
Collaboration featuresVoting to add a question and voting alternatives, share them with the board, and get answers in minutes E-signature to electronically sign documents securelyTask assignment to create a task, set a deadline, assign a specialist, and monitor progressAnnouncements to update board members on the latest news
Document management featuresLibrary to securely store and distribute board materialsComments to ask and answer questions from within a documentSearch function to find files quickly and track older document versions
Communication featuresPrivate or group chats to communicate securely with board members in real-timeVideo integration to conduct video meetings through Zoom and Skype integration
Reporting featuresUser-activity tracking to track what users do in the board portalAudit trails to receive engagement analytics

If you’re looking for board portal software for your credit union, the iDeals board portal is a great option. This is our experts’ TOP pick as it’s cost-effective, user-friendly, secure, and has all the necessary features to improve efficiency and streamline board operations.

Time to use the modern board management software!

iDeals Board serves board of directors, committee members with a comprehensive suite for governance tools

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FAQ

What is credit union board management software? 

A board portal helps credit union board management by providing board members with a number of tools for secure collaboration, meeting management, and document sharing. It allows boards to improve efficiency and make quicker decisions.

What are the benefits of using board portal software for credit union?

Among the major advantages of board portals for credit unions are robust security, optimized meeting management, simplified communication, 24/7 accessibility, professional client support, ease of use, and eco-friendliness.

Top 3 board portals