With economic conditions in a constant state of flux, it's safe to say the phrase "business as usual" is solidly in the rear-view mirror when it comes to credit unions managing their balance sheets and fulfilling member needs. University Federal Credit Union knows this well, and for the Austin, Texas-based, $4.1 billion institution, closer coordination between its finance, lending, retail and people teams has been the key to quickly responding to shifting marketplace factors without straying from its strategic growth goals.
Rhonda Pavlicek, UFCU's EVP of finance and risk and CFO, said the credit union's finance team is focused on managing liquidity, capital and risk in ways that allow other parts of the organization to pivot swiftly to meet member expectations.
"At UFCU, the balance sheet is not an end in itself," Pavlicek said. "It is a tool that enables us to meet members where they are, whether they are building savings, buying a car or home, or navigating uncertainty. Sound financial decisions ensure members can rely on us, regardless of broader economic conditions. That requires disciplined management of liquidity, capital and risk, focused on protecting access, not limiting it. By understanding risk early, we build the financial confidence that allows leaders to move faster and make decisions closer to members. This strength allows us to support members through both life's milestones and challenging environments."
On the lending side, UFCU leaders said growth has come from adjusting how the credit union evaluates member needs and affordability.
Danielle Frawley, UFCU's chief lending officer, said the credit union has focused on using data and insights to guide lending decisions and better understand what members can realistically afford.
"At UFCU, growth hasn't come from tightening lending," Frawley said. "It comes from being more precise about understanding member needs and affordability, and then using our balance sheet to meet them. Every lending decision begins with understanding each member's situation and helping them move forward with confidence. Growth for us is about impact. By focusing on responsible lending, long‑term relationships and affordability, we've strengthened our portfolio while staying true to our cooperative values. We apply data and insights to understand what members can realistically afford and design solutions that fit today's environment, rather than relying on one‑size‑fits‑all thresholds."
Frawley said a key part of this approach has been integrating agile teams directly within the credit union's lending lines of business.
"That allows teams to test, learn and improve at a faster pace, and to focus on the parts of the process that matter most to members," Frawley said. "Combined with our digital investments, this creates faster, more transparent lending experiences while keeping risk well-managed. We've also continued to advance our lending channels, including bilingual support that expands access and deepens trust in the communities we serve. The result is a balanced portfolio that widens access to credit while remaining sustainable."
UFCU is also making changes in its retail operations as members increasingly combine digital and in-person banking. Janice Matthews, UFCU's vice president of retail, said the credit union has focused on simplifying processes and improving the branch experience.
"We're evolving our retail model to reflect how members live today," Matthews said. "That includes enhancing digital experiences, modernizing branches and equipping our teams to deliver thoughtful, personalized financial advice that helps members achieve financial success. The goal isn't to replace personal service; it's to remove friction so our teams can spend more time building relationships."
One example of this was how UFCU approached improvements to its branch account‑opening experience.
"Nothing was broken, but over time, the process had become more complex than it needed to be," Matthews said. "Using an agile approach, instead of redesigning it in isolation, we involved frontline employees from the start, tested changes in real branches and adjusted based on direct feedback. That allowed us to confirm assumptions and simplify the experience without losing the personal connection that sets UFCU apart.
"Retail is where UFCU's purpose comes to life every day. The result is an experience where branch teams spend less time on paperwork and more time engaging with members – where getting started with UFCU feels easier and more attentive, not rushed, or transactional."
Julie Harrison, UFCU's chief people officer, said the credit union has been rethinking how teams are organized so decisions can be made closer to members.
"One of the most important shifts we've made is looking at the organization through an enterprise lens rather than optimizing individual functions one at a time," Harrison said. "In some cases, that has meant moving functions to different places, so work flows more naturally and can be digitized and scaled. That clarity reduces friction and helps teams focus on what matters most. We are continuing to invest in leadership development, workforce planning and internal mobility."
Joyce Moed can be reached at joyce.moed@arc-network.com.
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