The banking industry has undergone significant transformation. But ongoing challenges like the need for greater efficiency and cost savings, particularly in areas like board meetings, remain critical. Board portals help address these challenges. These platforms are not just a tool but a necessity for companies looking to increase operational efficiency, reduce risks, and ensure regulatory compliance.
This focus on efficiency comes at a time of substantial growth in the sector, with global revenue reaching $8.52 trillion in 2024 and an expected annual increase rate of 15% from 2019 to 2029.
In this article, you will learn why board portals for financial services are a necessity for your institution. Find out how these technologies can improve everyday operations in today’s banking industry.
What is a board portal?
A board portal is a seamless board meeting management solution and document repository, enabling committee members to securely access board materials, manage documents, conduct board meetings, and communicate in real-time.
- For a more detailed overview of the board meeting software, read our dedicated article: What is a board portal?
In highly regulated industries like banking and finance, this technology becomes even more critical. Managing a board in the financial sector presents unique challenges that board portals are specifically designed to address.
These include:
- Regulatory compliance. Banks and credit unions must keep up with strict regulations that demand accurate documentation and reporting. Otherwise, they can open themselves up to heavy penalties and litigation.
- Risk oversight. The banking crisis of 2023 demonstrated the consequences of failure in managing risk. Oversight requires a keen eye and a strong foundation for corporate governance.
- Document security. Paper-based systems, outdated and vulnerable, pose a significant security risk. With cyberattacks on the rise, protecting sensitive and confidential information is crucial.
- Timely decision-making. Busy board directors require information on demand to support their decision-making processes. Any delays caused by accessing or sharing documents will slow down the efficiency of the entire board.
In the following section, we’ll break down the features that make up an intuitive board portal solution, answering some of these major board governance challenges.
To address these issues, board portals for banks come equipped with a suite of security tools, including encryption and multi-factor authentication, which prevent unauthorized access to sensitive board information. Automated document storage and reporting also streamline compliance management, making audits quicker and more effective.
- Useful reading: The rise of board portals in healthcare organizations.
Key features of board portals for banks
Information management is critical in financial institutions, particularly when handling sensitive data and complying with strict regulations. Here are some of the most important features designed to meet the needs of banks:
- Security and compliance. Prioritize features like end-to-end encryption and multi-factor authentication to ensure the utmost protection of sensitive financial data. In addition, compliance tools ensure that the portal aligns with industry regulations like SOX, GDPR, and Dodd-Frank, providing automatic audit trails and secure storage.
- Document management. A solid document management system allows for the secure storage and distribution of board materials, with role-based access controls ensuring that only authorized personnel can view specific documents. The version control feature keeps track of updates, while automatic archiving makes it easy to store and retrieve past documents.
- Collaboration tools. Board members can collaborate seamlessly with real-time or private annotations, allowing them to comment on documents during meetings. With a digital board book and secure messaging, board members can easily access information and communicate privately.
- Meeting management. Features like automated scheduling help plan productive meetings, while agenda builder and reminders ensure participation. Also, automatic minute recording captures key points and decisions made during sessions.
- Integration with existing banking systems. The portal should integrate smoothly with your banking CRM, ERP, and other essential software. Also, the calendar management tool ensures smooth information flow and alignment between board activities and overall operations.
Benefits of using board portals for banks and financial institutions
Let’s explore the benefits of banking board management software, which improves governance, enhances data security, and saves time.
Improved decision-making
Board software allows instant access to up-to-date board documents, meeting minutes, audit reports, and communications, helping board members make informed decisions more quickly.
This feature saves time compared to scrolling through multiple emails or sifting through physical paperwork, with all the relevant information available in a few clicks.
Enhanced security and compliance
Board portal software has strong data protection and security features including data encryption, two-factor authentication, and role-based access controls. These security tools ensure that sensitive information is only accessible to authorized users, ensuring that the organization meets compliance standards more efficiently.
Simplified operations and board meeting processes
Digitizing all activities — such as document sharing, meeting scheduling, and task management — simplifies board operations. Over time, this reduces the costs and time associated with product or service development.
Better collaboration
Even when board members are scattered across different locations, collaboration remains strong through the digital board platform. Tools like real-time voting, task management, secure messaging, and document sharing keep everyone connected. Using modern tools contributes to dynamic communication and stronger governance overall.
Choosing the right board portal software for financial services
Thorough board portal feature comparisons are essential for choosing the right software for financial services. Consider areas such as:
- Security. A secure portal reduces risks for your bank and its customers by shielding them against cyber threats.
- Compliance. Banks are subjected to endless shifts in regulations. The board software automates document tracking and audit trails to keep you compliant and stress-free.
- Ease of use. Even the most effective tool is of little use if it’s hard to work with. Select a user-friendly solution, so that your board members can adopt it with little or no training.
- Integration. Ensure that the portal is compatible with your bank’s current software. Your new system should build on your current processes rather than complicate them.
- Support. Technical issues can cause unnecessary meeting delays. Choose a solution with 24\7 ongoing support and prompt ticket handling so that any concerns affecting your board will be solved immediately.
Once you’ve identified your organization’s specific governance needs, it’s essential to conduct a thorough evaluation of potential board portal vendors. To ensure the solution aligns with your needs, ask targeted questions such as the following:
- How do you handle ongoing data security in the face of evolving cyber threats?
- What specific compliance features do you offer for financial institutions?
- Can your portal scale with our organization, and does it integrate with our existing tools?
- What kind of customer support and training do you provide post-purchase?
Finally, it is crucial to define whether the investment in a board portal is financially reasonable. It should not only improve governance but over time, bring a tangible return on investment.
- Useful reading: board management software for the government.
Future trends in board management for banking and financial services
Technological developments and evolving market trends have transformed board management within the financial services sector. Let’s look at three trends that are set to influence the financial sector in the future.
Trend 1: Generative AI in the financial industry
The current value of the AI in the banking industry is $20.87 billion. However, it’s expected to reach $310.79 billion by 2033 with an annual growth rate of 31.01%.
Currently, generative AI is being used operationally, with financial institutions such as OakNorth, Bank of America, and Goldman Sachs leveraging the technology as a customer service tool.
Another finding stated that 74.9% of financial executives are looking to implement AI in the next five years or earlier.
Boards have a crucial role in overseeing these initiatives. They must ensure AI integration is done responsibly, balancing innovation with regulation and ethical considerations. As AI becomes more central to decision-making processes, boards must be vigilant about its impact on privacy, security, and the overall strategic direction of the institution.
Trend 2: More digital and cryptocurrencies
As of 2024, digital and cryptocurrencies are returning to the focus of financial regulators. Over 130 countries are currently in some stage of developing their central bank digital currency (CBDC), which may indicate a shift towards incorporating digital assets into legacy banking frameworks. Also, bitcoin is now on the recovery path after the 2021 drop, igniting renewed interest from investors.
In addition, we expect to find numerous applications of blockchain in developing smart contracts, managing payments, and verifying transactions.
For boards, this trend means staying informed on regulatory changes and guiding how digital assets fit into banking systems. Integration of cryptocurrencies has its risks and boards must manage them to stay compliant. Additionally, the key challenge for boards is adopting these technologies while protecting the institution from market instability.
Trend 3: Sustainable finance
In 2024, environmental, social, and governance (ESG) factors became a key concern for consumers when assessing financial institutions.
This shift is seen particularly in financial institutions’ investment in green areas such as renewable power, recycling, and their carbon footprint. Financial products that align with ESG goals offer customers an alternative to investing in companies with potentially harmful social or environmental practices.
To support the trend toward sustainable finance, Goldman Sachs announced a target of $750 billion for sustainable finance by 2030, while the EU’s Green Deal plans to invest at least €1 trillion.
For boards, it’s essential to ensure these initiatives align with the institution’s long-term financial and ethical goals. Keeping a close eye on ESG performance will be crucial for staying competitive in the future.
Conclusion
As cyber threats and regulatory demands intensify, adopting a board portal is no longer optional — it’s essential for banks seeking to improve document management and streamline governance. Board portals protect your sensitive data, save time in meeting compliance requirements, and simplify information management.
iDeals Board equips financial institutions with the tools to meet industry-specific challenges, from meeting preparation to document sharing and real-time communication among board members.
With 24/7 customer support and an intuitive interface, iDeals Board helps financial institutions stay ahead of industry demands. Explore how iDeals can transform your board management today.