Culture’s Trajectory: Growth, Decline, or Absence?

Not every organization has a healthy, functioning culture.

Some cultures are growing - nurtured intentionally, reinforced by example, and aligned with mission. When healthy culture takes root, it becomes a leading indicator of resilience, trust, and regulatory strength. Even before issues appear in data or audits, culture often reveals what’s working - or what isn’t.

Other cultures are withering. Perhaps once strong, they’ve faded due to leadership turnover, rapid growth, competing priorities, or neglect. Warning signs often include disengaged or misaligned teams, inconsistent messaging, and breakdowns in accountability. The question becomes: can it be corrected - or does it need to be replaced?

And in some institutions, there is no shared culture at all. No common values. No clear mission. No sense of behavioral expectations. What are team members to make of it if Board members and executives are unclear - or if their words and actions send conflicting or harmful signals? In such cases, risk may go unrecognized and mitigation may be more illusion than reality.

Culture doesn’t thrive by default. It requires leadership. And it rewards vigilance.

For financial institutions - especially fintechs, large MSBs, and fast-scaling platforms and their servicing banks and credit unions - culture is a critical strategic asset. It can be a powerful mitigant, reinforcing compliance even under stress. But when culture is weak or misaligned, it doesn’t just fail to protect - it actively amplifies risk.

And governance matters so much more than many institutions recognize.  The presence of an outside, independent Board member - particularly one with compliance and risk oversight experience - can bring extraordinary value. The right outside director provides not only increased accountability, but much-needed perspective. If your institution lacks independent governance, don’t wait for a regulatory exam to raise the question - raise it now.

If your culture is growing—tend to it.

If it’s fading—confront it.

If it’s undefined—define it and build it.