In 2025, PwC (PricewaterhouseCoopers) published the results of a board effectiveness survey where only 35% of the c-suite respondents rated their board’s effectiveness as “excellent” or “good”. How would you rate your current board’s effectiveness and what are the implications of its performance on your credit union’s ability to meet its strategic goals?
With strategic planning season in full swing, this co-authored article offers practical insights, questions, and suggested actions to strengthen board composition and effectiveness to better align with credit union strategic growth objectives. We included additional findings from the PwC survey as well.
Survey results: The board effectiveness gap
In May, PwC published a report, “Board effectiveness – A survey of the C-suite”. The survey gathered insights from over 500 executives of publicly traded companies across various industries, with 60% representing organizations generating more than $1 billion in annual revenue.
The results included the following gaps and opportunities:
- Only 35% rate their board’s overall effectiveness as “excellent” or “good”.
- Only 31% think their boards have the right expertise.
- 93% want someone on their board replaced; 78% want 2+ directors replaced.
- 56% responded that “advanced board member age has led to diminished performance.”
- The top two answers to “How do you think boards need to evolve over the next five years?”
- 37% responded: “Invest more in board education and development.”
- 36% responded: “Encourage more innovation and forward-thinking approaches.”
Across industries, board optimization can be a challenge and an opportunity. Credit unions that build a team of directors with differentiated talent, perspectives, connections, and mindsets will have an advantage within an evolving landscape.
Importantly, “optimizing” means prioritizing qualified directors who bring professional expertise and business acumen alongside representation of the markets served including firsthand insight, language fluency, and authentic connections to community stakeholders. When board capabilities match growth priorities, institutions are better positioned to seize opportunities in high-growth markets such as the Latino market.
The Latino market opportunity
One of the clearest examples of new market growth for credit unions is the Latino market. It is large, rapidly growing, notably young, highly entrepreneurial, and still significantly underserved by mainstream financial institutions. This creates clear room for credit unions to differentiate and win this market. That means steady demand across core products and greater lifetime value driven by multigenerational relationships and referrals.
Consider these five “Did you know?” insights before setting next year’s growth strategy:
- Latinos represent about one in five U.S. residents—and an even larger share of Gen Z—driving the majority of population growth in many credit union footprints.
- Latino consumers show strong willingness to pay for solutions that remove friction—clear eligibility, bilingual support, faster approvals, and trusted service.
- Latino-owned businesses are the fastest-growing segment of U.S. small business formation.
- Latino household incomes and educational attainment have been rising, with many members entering peak homebuying and small-business formation years.
- Family networks and entrepreneurship are fueling wealth creation—and growing intergenerational transfers.
Readying the Board for this significant growth opportunity strengthens governance and positions the credit union for long-term growth.
Board readiness: 5 questions every board should be asking
Strategic planning season is the ideal time to assess readiness and determine whether your board has the skills, perspectives, and governance practices needed to guide expansion into new markets. Readiness is the difference between a board that passively acknowledges growth opportunities and one that actively positions the organization to capture them.
Preparing now means asking tough questions about alignment between strategy and board capacity, setting clear metrics for progress and ensuring resources are allocated to support long-term engagement. By deliberately building readiness into this year’s planning cycle, boards can move beyond awareness to action and make growth in markets like the Latino community both intentional and sustainable.
Failing to act carries real risks: boards may overlook the fastest-growing member segments, lose ground to competitors, or inadvertently signal to underserved communities that their needs are not a priority.
To mitigate these risks, boards and leadership teams should ask the following questions:
- How well does our current strategic plan reflect demographic shifts, and what new membership growth strategies are limited by our board's current composition?
- What is at risk (growth, trust, reputation) if we do not take action this planning cycle?
- Do we have the right board mix of career expertise, firsthand perspectives, and community connections to advance inclusive growth? Do we have important skillsets missing?
- What strategic partnerships or community relationships could accelerate growth strategies and help us better understand untapped member needs?
- If our members sat in a board meeting, what would they think about our board’s effectiveness and commitment to serving their financial needs?
Improving effectiveness: 5 actions to take
Representation cannot stop at staff or the leadership team—it must reach the board to be effective. Board members who reflect your markets bring industry knowledge, cultural insight, language fluency, and community connections that sharpen strategy, surface risks, and increase accountability. Qualified directors help the board ask better questions about product fit, service design, and outreach that signals respect and belonging to members.
To further enhance board effectiveness and impact, consider the following five (5) actions:
- Prioritize the conversation: Reserve time this planning cycle for a frank board discussion on readiness and alignment to membership growth objectives.
- Define competencies needed: Create competency-based board position profiles including business acumen, education, age, language fluency, and community connections. Find skillset gaps.
- Strengthen succession now: Launch a pipeline of diverse, qualified candidates (e.g., young professionals, business owners, community leaders); set a timeline for outreach and interviews.
- Invest in board education: Schedule training on demographic trends and inclusive governance practices. Engage outside experts where in-house capabilities are thin.
- Engage strategic partners: Bring in external specialists to help the board and leadership team identify gaps and define a strategic market growth plan that ensures shared responsibility and alignment between the board and management.
Conclusion
The next era of your credit union’s growth is now. Optimizing board composition and how it operates will strengthen the foundation for growth and improve reach into emerging markets—particularly the Latino market. What is the first action your credit union needs to take?
If your credit union is ready to accelerate board readiness and translate strategy into measurable growth, connect with us. De Dios Consulting specializes in Latino market strategies—helping your credit union identify high-opportunity segments, design product, marketing, and outreach strategies, and train boards and staff. Vine2Brand Consulting Group helps credit unions further grow, adapt, and reach through strategic planning, go-to-market action plans, turnaround initiatives, CDFI consulting, and grant writing.
Co-author: Sue Schroeder, Vine2Brand Consulting Group
