School is out, but given fintech evolution, digital transformation and cybersecurity threats, credit union planners must provide a learning environment and add directors with specific competencies for better board composition.

Add in the customary fiduciary and regulatory aspects of its duties, that most board positions remain unpaid, and the financial services landscape is becoming increasingly difficult to navigate, and choosing credit union board members can be difficult.

Brandi Quinn, SVP of enterprise reporting at St. Petersburg, Fla.-based CUSO PSCU, which has established its own set of criteria for building a successful and knowledgeable board, passed along some ideas to help credit unions with their board decisions:

• Develop a complete grasp of expectations that could influence the credit union in the coming years by evaluating the current state of business. This should include an understanding of any related income taxation changes.
• Address required skills by identifying a competency matrix that highlights what the board needs to best oversee the financial institution given the credit union's challenges. This would include cyber and enterprise risk, tech or vendor platforms, and payments shifts.
• Establish a culture of performance via board self-assessments, individual director assessments and/or shorter terms. The credit union should also document responsibilities and expectations in governance policies and director job descriptions.
• Instill diversity in the boardroom to allow for differences in thought. Ensuring an assortment of opinions can elevate the boardroom discussion and put credit unions in a position to address essential topics in a knowledgeable and timely fashion.
• Create a learning culture with the ability to provide boardroom or external training to ensure directors can effectively help a credit union board navigate critical issues and risks.

Read more about credit union board composition in the June 27 issue of CU Times.