Michael Dalglish, President, CEO, CBDO, United Financials Capital

As interest rates ease slightly and liquidity gradually returns, we are beginning to see an uptick in opportunities from developers, a positive sign for the broader financial industry. United Financials Capital (UFC) and its credit union partners are proactively addressing liquidity challenges by harnessing the strength of collaborative lending. “As a group, we’re experiencing a strong rebound in liquidity, enabling us to expand lending and support more businesses,” said Michael Dalglish, president, CEO, and chief business development officer of United Financials Capital, a credit union-backed lending platform, in an interview with Invest:.

What is the biggest challenge for credit unions right now?

The financial institutions focused on CRE lending have faced challenges due to higher interest rates and liquidity constraints across the sector. However, we remain optimistic. While market liquidity has been tight, our coalition of credit union owners has enabled us to develop creative solutions that keep deals moving forward—a significant advantage in today’s environment. We continue to actively lend, identify new opportunities, and adapt to the evolving landscape. By leveraging our collaborative approach and innovative strategies, we are committed to helping borrowers navigate these challenges and secure the right financial solutions to support their success. 

Conversely, what are the strongest opportunities for credit unions?

Credit unions are all seeking innovative ways to grow their balance sheets, and UFC provides a powerful advantage in that pursuit. We open doors to lending opportunities that credit unions may not have pursued independently, creating new pathways for growth and expansion. As a coalition, we’ve demonstrated the strength of collaboration, and that momentum continues to accelerate. I anticipate even greater partnerships ahead, as more credit unions recognize the value of leveraging UFC to better serve their members, drive revenue, and enhance their competitive edge in the marketplace.

What is your overview of the state of the credit union, banking, and financial services industry in the region? 

The financial services industry in this region is looking more promising each quarter, and we’re seeing positive momentum. Liquidity is making a comeback, and credit unions are starting to see more available capital to deploy into new opportunities. While the past couple of years presented challenges, the rebound we’re experiencing now is creating exciting possibilities. This resurgence not only strengthens our ability to support businesses and communities, but it also enables us to be more strategic in identifying and funding the right opportunities in the market. It’s an encouraging time for growth, collaboration, and innovation in the industry.

What makes the Twin Cities an ideal location for business expansions and relocations?

The Twin Cities market is incredibly strong and offers a unique environment for business expansions and relocations. It’s home to a wide range of major corporations, including UnitedHealth Group, Cargill, Target, Best Buy, General Mills, and Medtronic, just to name a few. In addition, the area is a vibrant sports hub, with top-tier teams like the Minnesota Wild, Vikings, and Twins, along with exciting new franchises like MN Frost. And of course, the Mall of America is another major attraction.

What makes the Twin Cities even more appealing is its solid business infrastructure. When it comes to lending, being in a market with so many influential organizations is invaluable. The region’s strength and the quality of life it offers not only attract people to live here but also encourage businesses to establish themselves in the area. The Twin Cities is truly a hub for innovation and growth. With a world-class international airport, which serves as a main hub for Delta, the region is an ideal location for businesses to thrive and expand.

How does United Financials Capital differentiate itself from other credit unions or financial institutions? 

United Financials Capital stands out by providing access to opportunities that many individual financial institutions may hesitate to pursue on their own. We primarily focus on midmarket loans, which are often larger or more complex than what a single credit union might be comfortable handling. As a coalition, we’re able to pool our resources, reduce risk, and move forward with deals that might otherwise be passed on.

This unique structure allows our owners to take advantage of valuable opportunities without taking on excessive risk to their balance sheets. It’s a collaborative approach that gives credit unions the ability to work with specific members, organizations, developers, or investors they might not have been able to support individually. By partnering with UFC, they can expand their lending capacity and serve a broader range of clients, which helps everyone grow.

How is the coalition leveraging technology and innovation to improve overall operations and lending services?

Our credit unions are truly forward-thinking and committed to staying at the forefront of technology. Many are actively exploring the latest advancements, such as artificial intelligence, to streamline their operations and enhance the member experience. These technologies are enabling credit unions to provide more personalized, efficient services while driving greater revenue for their member base. There is a strong interest in how AI and other cutting-edge tools can move their organizations forward, and by embracing these innovations, our credit unions are not just keeping up—they’re leading the way in offering advanced solutions that benefit both their members and their organizations.

Have you noticed a shift in client expectations?

We’ve seen steady growth in the credit union member base year over year, which is a clear reflection of the value they’re providing to their members. While growth is always exciting, it’s the innovation driving that growth that stands out. Credit unions are embracing cutting-edge technology, making it easier for members to interact and transact with them, whether through mobile apps, online platforms, or in-branch services.

Innovation is fueling success for credit unions and financial institutions across the sector, with those adopting forward-thinking approaches seeing significant growth. Today’s consumers expect seamless, real-time transactions, and they want access to their financial services at their fingertips. Credit unions that are meeting those expectations—through technology and a strong member-first approach—are thriving because they are delivering what members demand, when and how they want it.

What will be UFC’s top goals and priorities moving forward? 

At UFC, we have a visionary and forward-thinking board of directors, composed of the CEOs of our owning credit unions, who are deeply committed to our growth and success. Our primary goal moving forward is to expand our platform within the commercial real estate space, strengthen our brand in the marketplace, and position UFC as the go-to platform for investors and developers, both locally and beyond.

As we continue to evolve, we’re excited about the potential to expand our reach to new locations across the country. While we are currently focused on building our presence here in the Twin Cities, the future holds immense opportunities, and we’re prepared to seize them. These are incredibly exciting times for UFC, and we’re poised to continue advancing with confidence, purpose, and innovation.

What new markets are probable targets for expansion, aside from the Twin Cities?

At UFC, everything is always on the table when it comes to growth and expansion. While our primary focus is on strengthening our presence in the Minnesota market, we are actively building relationships with financial institutions across the Midwest. This positions us well to explore opportunities in the upper Midwest and beyond. Our approach is strategic and driven by the needs of our partners and the market.

As we continue to expand, UFC is committed to offering exceptional value to our partners, providing innovative solutions and deep industry expertise that make us a trusted partner in commercial real estate lending. Whether you’re in Minnesota or the broader Midwest, UFC is a partner you can rely on for growth, collaboration, and success.