What Does ChatGPT Know About Credit Union Boards? (And Do You Want to Know?)

I asked ChatGPT what is the biggest failing of credit union boards of directors. It spit out a very interesting (dare I say “thought”-ful?) list. A healthy director and board will consider these potential failings with a hard look in the mirror.

By Kevin Smith


What does ChatGPT know about credit union boards of directors?

I’m generally not a bleeding-edge adopter of technology. But I’m no Luddite either. My preferred category is fast-follower. So, this whole AI, large language model of machine learning thing has finally gotten my attention. (Given it’s prevalence in the media, it’s no wonder.) And I decided to try it out. What’s this got to do with credit union boards of directors, you say? Well, let’s see.

I decided to find out what ChatGPT had to say about something I felt I knew something about: credit union boards, so that I could evaluate the response. And the prompt that I chose was this:

What is the biggest failing of credit union boards of directors?

And here is ChatGPT’s Response to the prompt:

While credit unions generally operate with a member-centric focus and strive to fulfill their mission of serving their members, they are not exempt from potential challenges and failings. One of the most significant failings that credit union boards of directors might encounter is a lack of diversity and inclusion. Here are some aspects to consider:

  1. Lack of Diversity on the Board: Credit union boards may suffer from homogeneity in terms of demographics, professional backgrounds, and experiences. This lack of diversity can limit the board’s ability to consider different perspectives and adequately represent the diverse needs of their membership.
  2. Insufficient Expertise and Skills: Sometimes, credit union boards might lack specific expertise, such as financial, technology, or marketing knowledge, which are crucial for making informed decisions and staying competitive in the financial industry.
  3. Limited Understanding of Membership Needs: If the board is not adequately connected to the credit union’s membership or lacks insight into their evolving needs, it may lead to misaligned strategies and services that do not effectively address member concerns.
  4. Ineffective Governance and Oversight: Boards that do not have clear governance structures or fail to provide proper oversight might face challenges in ensuring financial stability, managing risks, or maintaining compliance with regulations.
  5. Resistance to Change: In rapidly evolving markets, credit unions must adapt to new technologies and member preferences. If the board is resistant to change or slow to respond to shifts in the financial industry, the credit union’s ability to remain competitive and relevant could be compromised.
  6. Inadequate Succession Planning: A failure to plan for board member succession can lead to a lack of continuity in leadership and a loss of institutional knowledge. Effective succession planning ensures a smooth transition and fosters a long-term vision.
  7. Weak Communication and Engagement: Boards that do not actively engage with their members and fail to communicate transparently may lead to dissatisfaction among members and weaken the credit union’s sense of community.

It’s important to note that not all credit unions will experience these challenges, and many credit union boards effectively address and overcome these potential failings. By promoting diversity, fostering a culture of continuous learning, engaging with members, and maintaining strong governance practices, credit union boards can improve their ability to serve their members and fulfill their mission effectively. Regular assessments, training, and ongoing self-evaluation can also help boards identify areas for improvement and ensure they are meeting the evolving needs of their members.

End of ChatGPT and back to Kevin. 

Keep in Mind

Keep in mind that what ChatGPT does is “scrape” the interweb-tubes for its information, which means that what you see above is information that came from humans at some point.

What do you think? What do I think?

What do you think of this list of “failings?” Does it resonate with you? With your board? With your experience of the credit union movement?

What I think is that people in our industry don’t like to dwell on the negative for fear of being seen as pessimistic. But a lot of what is said above, is also said in hallways outside of conference rooms, or in one-one-one conversations. And I agree with most all of what’s in that list … to one degree or another.

Before You Get Defensive

Now before you start drafting a salty comment or email to me about how your board isn’t like that and isn’t failing, etc., please take a breath. I make a clear caveat quite often: This list of failings that I agree with represents a broad generalization about boards in the credit union movement as a whole. Notice very carefully the final paragraph from the results, starting “It’s important to note that not all credit unions ….” Isn’t that interesting how ChatGPT has its very own caveat about this not being true of every organization? I’m giving it some added style points for that flourish as I wasn’t expecting that.

What Do We Do With This?

Every board would be prudent to review this list and put it on an agenda for discussion. (This would be a great topic to bandy back and forth on your board portal.) Every board should reflect in an honest way about where they stand on all of these issues. It’s very important to acknowledge that it can be very difficult to see your own failings, to have anything but a rosy view of how your board is doing. No one ever says, “Yes, it’s me. I’m resistant to change.” But it is very clear that credit union boards can be prone to this issue. What’s worse, is when there’s one board member with this problem that is holding back the full board but no one will confront them on it.

This requires candor. It requires trust. It requires a full-fledged desire to do what’s best for the credit union. And it’s very worthwhile.

So, thank you to ChatGPT for this interesting exercise. Now … what do you think? As always, we’d like hear your thoughts.

Diversity Gains on the Board

Diversity Gains On the BoardBy Kevin Smith

“Companies appear to be discovering that a big talent pool of nonwhite people and women for board seats does, in fact, exist. Some, like Dr. Hammond, have been hiding in plain sight.”
Board Diversity Increased in 2021. Some Ask What Took So Long
Peter Eavis, New York Times, January 3, 2022

Board succession planning and recruitment has been a hot topic for a while now. This isn’t my first blog post about it and I’ve been talking about it at trade conferences and in individual credit unions more in the last couple of years. It’s heartening to see diversity gains on the board highlighted in this news story as accomplished, not just a talking point and an “elusive” goal. This is tremendously valuable to the board’s role and it can be done. But … and I hope you know this … it’s work. It doesn’t just fall in the collective lap of the board.

Do the Work

I’m not going to rehash the value of diversity here. It’s at the point where I’m going to take that as a given. However, in the same breath, I know that there are those out there who aren’t convinced. There is no doubt that’s true, because I have been part of the debate and an observer in the room while it happens.

If you’re not convinced about the value, do the work. A Google search will yield weeks’ worth of reading from qualified researchers.

Buy In

Not long ago a director insisted to me that diversity is ALWAYS secondary to the qualifications of the candidate. That was his reason for pushing back on diversity efforts from his colleagues. Never once came the acknowledgement that there can and should be both qualifications and diversity. And the “qualifications-first” argument feels very disingenuous. I’ve worked with thousands of board members. One of the conversation sparks that I use in training rooms is to ask long tenured board members how long their learning curve was when first joining. This is typically measured in years. I ask those senior directors to tell the rookies in the room what they wished they’d learned first or faster. There is plenty to talk about! In fact, the majority of the directors I know don’t come from a background in financial services, credit unions, or the like. They ALL have plenty to learn as quickly as possible. So, at a basic level, those “qualifications” we’re looking for are critical thinking skills, curiosity and the desire to learn (with maybe a few more sprinkled in as well).

How to Achieve Diversity Gains on the Board

I tend to say this a lot: It’s simple, but not necessarily easy.

  • Start with what you have. Write down what you want. Examine the gaps. Fill the gaps.
  • With 7-9 board members you may never get to perfect, and that’s okay. Push for always just a bit better.
  • Create an evergreen list of candidates. Require that every board member add a name to the list every year. (C’mon. One per year! Doable!) Names may come and go.
  • You don’t have to look for existing members (though it doesn’t hurt). You can look for people in the community that show the leadership and qualities that you want and go talk to them. Figure out how to make them members when the time comes. Identify the most impressive people you can find. Set the bar high.
  • Change your mindset. No longer can we look to friends who look and act just like us from down the hall to fill the seat. It’s important. Do the work.
  • Sell it!


I hear from plenty of board members who lament the fact that people don’t have the time, don’t have the interest, don’t have the [fill in the blank], yadda yadda yadda. Then I ask them, “why do you do this?” They brighten and tell me all of the passionate reasons why they serve. Board recruitment means selling the job and giving candidates the WIIFM (What’s in it for me?). It’s not an understatement to say that you can change people’s lives! Yes, people are busy, but if you give them the right reasons, they will share your passion. Anything else is a copout.

A Variety of Ages Also Counts as Diversity

My colleague, TEAM Resources founder, Tim Harrington pushes for young professionals to join credit union boards. I couldn’t agree more. They come with a fresh perspective; they’re steeped in technology that some of us with graying hair are still learning. And it can be pretty easy to give them their WIIFM. The resume item, “board member of a financial services provider” yields results to someone looking to advance. And think of the connections the rest of the tenured board and senior leaders at the credit union can provide for an up and coming professional. Sell it, baby!

I’m encouraged by the article I posted above. Likewise, I’m encouraged by the discussions I’ve been part of and the growing acknowledgement of the value of diversity. But I’m eager to see more results, more diversity gains on the board. You can do it. It’s worth it. Let Tim and me know how we can help.

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