Board Portals Help Bank Directors Enhance the Environment and their Governance

Growing concerns over environmental and liability issues are making the use of board portals more appealing to the directors of financial institutions.

Board portals are a definite positive for the environment. They provide electronic access to information, thereby, reducing the consumption of paper, ink and other resources. That’s an extremely important factor, given that the printed “board books” prepared for directors’ monthly meetings can run several hundred pages. These massive books are created month after month—often for more than a dozen directors—and that’s not counting the separate materials needed for committee meetings. 

American organizations and individuals utilize a great deal of paper. According to the Environmental Protection Agency, about 85 million tons of paper and paperboard are used in the United States each year. The average American uses about one 100-foot-tall Douglas fir tree in paper and wood products annually. Worldwide consumption of paper has risen by 400 percent in the past 40 years, with 35 percent of harvested trees being used for the production of paper.

In addition, there are a number of environmental concerns surrounding paper manufacturing & chemicals that can affect waste water and/or contribute to air pollution.

Besides benefitting the environment, board portals also provide a way for bank directors to better manage the inherent responsibility and potential liability that comes with their position.
The boards of financial institutions are responsible for having adequate risk monitoring and controls in place. They’re also expected to make business decisions in good faith.

However, the ongoing credit crisis and failures have led the government to increase its regulatory oversight of financial services. The Federal Deposit Insurance Corporation (FDIC) has brought civil lawsuits against bank directors and officers who fail to fulfill their responsibilities, including the duties of loyalty and care, and who do not make reasonable business judgments on a fully-informed basis and after proper deliberation.

Benefits of a Board Portal
A board portal is the answer to supplying directors with timely, ample and accurate information that can help them fulfill their governance responsibilities. Basically a private online environment, a board portal gives directors password-protected access to their institution’s information. Directors can use a Web browser to obtain their organization’s information quickly and easily from anywhere in the world. This convenient access to information is essential for directors who typically maintain busy schedules and travel a great deal.

With a board portal, bank directors have a secure method for obtaining, exchanging and transferring their organization’s confidential information. Portals typically offer two-factor authentication, prescribed access levels, encryption and other measures to thwart access by unauthorized individuals. Encrypted folders help to safeguard any data that board members download to their personal computers and mobile devices.

Portals can facilitate directors’ governance role in a number of ways. For instance, instead of waiting to receive information by mail, fax or email, directors can log onto a secure online environment and gain instant access to accurate and timely information. They can view archived and updated material in real time to better prepare for monthly meetings, committee sessions and other obligations.

A board portal can also enhance communication and collaboration among bank directors and other users. Directors can use a portal to contact fellow committee members, senior management, general counsel and other key personnel within their institutions. They can also view uploaded documents and provide comments promptly and securely online. This can help directors have more meaningful deliberation and make better informed decisions on behalf of their institution.

From a less tangible perspective, board portals can save a considerable amount of time. Board secretaries can avoid spending countless hours preparing, printing and mailing huge paper books. Secretaries can also reduce the use of mail delivery services, another cost savings. Since now directors can access data well in advance, they can cover more ground during meetings. Their increased productivity can result in faster loan approvals and other decisions that can give the bank a competitive edge.

DirectorsLink, the Ideal Solution
Board portals are becoming more and more popular, particularly with the growing emphasis on governance and adopting environmental-friendly practices. There are a wide variety of portals available on the market. DirectorsLink from Banc Intranets is ideal for bank boards because it was carefully designed to address their unique needs. DirectorsLink was created by banking experts especially for community and regional financial institutions.

Financial institutions praise DirectorsLink for its ability to save trees, time and other resources. Randy Parsons, S.V.P. and chief technology officer with Monticello Banking Company said: “Now the documentation being presented to the board is available in a more uniform and timely manner. In addition, the board secretary no longer has to prepare 100-plus page board books for each of the bank’s 15 directors. It works well; we don’t print any documentation for board meetings at all now. We expect DirectorsLink to pay for itself (in printing costs) in less than two years.”

DirectorsLink is a complete portal product that offers a wide range of benefits and features. It affords directors convenient access to information, making it easy for them to stay connected and informed on the latest board and company developments. Users can review corporate policies, financial information, meeting minutes and calendars. Having access to information through the online portal facilitates communications and collaboration—which, in turn, can make directors more productive and better able to perform their governance duties.

Other benefits of DirectorsLink include:

• Security: The DirectorsLink portal uses the latest encryption technology to provide a high level of security. DirectorsLink uses powerful Secure Socket Layer (SSL) technology to ensure data remains safe during access, storage and transmission.
• Simplicity: DirectorsLink is built with wizards and templates, so no programming is required. It offers a simple, point-and-click interface that is as easy to use as a word processor. A helpful search tool makes it easy to locate corporate and industry information throughout the system.
• Customization: Users can personalize the templates, graphics and other components to match their corporate colors.
• Functionality: DirectorsLink is compatible with Microsoft Office and works seamlessly with Outlook, Word, Excel and PowerPoint.
• Support: Although, the system is easy to use, Banc Intranets offers complete support from “live” experts who can address any questions or concerns users may have.

To learn more about how DirectorsLink can enhance the environment and governance of bank boards, contact Banc Intranets today.