Corporate boards can be traced back to the trade guilds of Medieval Europe. Craftsmen or merchants who were members of their respective guilds would elect members to serve as the primary decision-makers, voting collectively on matters related to trade regulations and apprenticeships. In 1602, the Dutch East India Company, one of the first multinational corporations, introduced a more formalized corporate governance structure with a board of directors and shareholders. From there, corporate boards have continued to evolve.For millennia, managing board meetings was often a cumbersome feat — organizing board packets that frequently needed last-minute changes, juggling the availability of extremely busy people, and following up to see if they were making progress on strategic tasks assigned to them.Today, more community financial institutions (CFIs) are turning to board management software — a one-stop digital location to share documents, hold board and committee meetings, assign and track tasks, create discussion boards, and brainstorm new ideas. Board portals — whether online or on apps — are vastly more efficient, more secure, and often more collaborative than traditional manual processes for board activities.The Benefits of Board Management SoftwareWhen it comes to improving board meetings and processes, board management software has a leg up on just about any other solution you could dream up. Here are a few of the best perks of implementing board management software at your CFI:
- Efficiency. Digitized board packs and accompanying documents are stored in one place, powered by search engines so that board members can more quickly find and organize critical information. Everyone receives alerts when documents, schedules, and tasks are revised in real time — something much harder to follow when CFIs use email and manual records.
- Example: The $2B-asset MainStreet Bank in Fairfax, Virginia, used to print roughly 250 pages, 11x a year, for each of its 11 directors — more than 30K pages annually. Making any last-minute changes was a major headache. Since implementing board management software, CEO Jeff Dick notes that “three minutes before the board meeting, we could make a major change and everyone would get it.”
- Enhanced security. Board management software offers encryption, multi-factor authentication, and detailed access controls like granular permissions — far more secure than emails and standard document-sharing software. Moreover, only authorized individuals can access confidential documents, and if designated, only on bank-issued tablets or phones that the CFI can restrict access to remotely, if the device is lost or stolen.
- Example: Troy A. Peters, president and CEO of $933MM-asset Jonestown Bank & Trust Co. in Jonestown, Pennsylvania, says that with board management software, his internal team no longer has to worry about how board members store or dispose of sensitive bank documents. “We look at paper as one of the least secure forms of storing information, because it can get lost, it can get mislaid and it can get compromised or stolen,” Peters says. “It can also get photocopied and disseminated.”
- Increased accountability. CFIs can now better assign and track any strategic tasks assigned to board members and more easily follow up on whether they are in the process of accomplishing them, complete with automated reminders.
- Enhanced compliance and corporate governance. CFIs can more readily demonstrate to auditors or bank examiners that they are complying with legal and regulatory rules by maintaining all documents securely on the digital board portal, as well as tracking board decisions.
- Greater collaboration. Board members can more easily share information and brainstorm new ideas with each other in secure discussion forums. This also ensures everyone has an equal chance of promoting their ideas or sharing any concerns, potentially leading to greater collaboration.
- AI-powered functionalities. CFIs can leverage artificial intelligence (AI) to create meeting agendas, summarize discussions, and answer questions posed by board members about particular documents or items on the upcoming meeting agenda.
When considering which software to use, you should consider choosing a vendor that is certified by the International Organization for Standardization or a comparable body. Doing so ensures the software meets high-quality standards and adheres to rigorous security protocols, safeguarding sensitive board information. In addition, look for a user-friendly interface so board members can easily navigate through the dashboard; the ability to connect to other applications used by your CFI, such as Microsoft Office or Google Workspace; and mobile access, so that board members can participate from anywhere in the world. Also, consider if the vendor offers adequate support for both bank management and board members, if needed.Consider board management software to greatly ease tasks for both your internal team and board members. Digitized documents, real-time discussions, and better tracking mechanisms can vastly improve efficiency and corporate governance, and potentially improve collaboration among board members.
