A Direct Line Blog

By Donya Parrish, MCU VP- Risk Management

Each year during our annual Power Up, we try to get the attending board members together. Some years it is with a breakout session on a board topic; other years it is an informal gathering for discussion. This year was the latter. We had twelve board members pull up a chair during breakfast to engage in dialogue. (pictured below)

We were also blessed to be joined by Scott Simpson, President/CEO of America’s Credit Unions, who was speaking right after to open the conference. He asked if he could sit and listen because he was genuinely interested in hearing the discussion. It was humbling to have him there, and the conversation gave him your perspective on a variety of issues.

Here was some of what is keeping those directors awake at night:

• Keeping up with Technology — Smaller credit unions are especially worried about being left behind in this area. Are you chasing the newest and shiniest technology that a few members asked for, or are you taking a thoughtful approach to what benefits most and can be done with current or known providers? We discussed member focus groups and talking to frontline staff about what they are hearing from members as ways to gain valuable input without making promises.
• Board Succession — As directors continue to age and plan to transition off their boards, how does the credit union maintain institutional knowledge and ensure it still represents the demographics of your membership? Several mentioned success with their associate board member program, and one credit union shared that they just intentionally shifted roles so the person moving out of the role could mentor the one moving into it, which broadens knowledge.
• Staff Succession — We discussed planning for CEO succession and the new NCUA requirement and planning template. Some are seeing the value of developing talent internally to prepare for future succession.
• Political Continuity & Advocacy — With Senator Daines’s retirement later this year, we lose a strong credit union advocate. Our advocacy champions are already working to build relationships with local and federal candidates. We discussed the value of advocacy involvement. It was mentioned that a board should ensure its credit union’s executive staff feel empowered to get involved in advocacy.
• Impact of AI — Artificial intelligence is gaining traction and showing up in programs across the financial landscape. Some board members are trepidatious about using and supporting it. We talked about ways to use it as a tool to improve efficiencies and noted that it is less daunting if you can find ways to step into it where it makes sense, especially since it is not going away.
• Staying True to Purpose — Credit unions were created for people to serve people. To stay true to that mission, it is important to keep that mission at the forefront in your credit union. Our Montana Credit Union Philosophy Certification Program is a perfect place to start! A credit union shared that they have had their full board and staff complete it, and they challenged others to consider it.
• Generational Needs — Younger generations have different needs than previous ones did. They want to be able to transact when it works best for them and their lifestyle. We discussed the challenge of the credit union serving multiple generations at one time and into the future.

As you can see, it was a robust and worthwhile conversation! Thank you to all who were able to attend. Your time and dedication to sharing and improving are always inspiring! And, yes, a few of these will likely be explored more in future blogs!