“OK boomer!!”

Yes, we can thank boomers for the fact that, today, credit unions’ average member age is 53, according to a McKinsey & Company report. While boomers remain the financial foundation for credit unions, their impending exit makes engaging younger members mission critical as younger generations are turning to fintechs, digital banks, embedded financial apps and even traditional banks that can deliver and better match their digital expectations.

Credit unions must attract younger members – especially Gen Z (born 1997-2012), who are now entering their prime earning years. They are the world’s largest generation (second only to millennials in the U.S.) – and, globally, Gen Z could be the wealthiest generation reaching $74 trillion in income by 2040, according to Bank of America Institute research. Yet for now, they are weighed down with affordability issues, struggling with debt and, according to the research, often “overeducated and underemployed.”

That may not make them ideal members today, but their long-term potential makes Gen Z critical to credit unions’ future. Credit unions already lead all financial institutions in trust – attracting Gen Z early can convert that advantage into lifetime loyalty.

But today’s Gen Z is indifferent to credit unions and focused on digital banking – and largely overlooked by credit unions. Eighty percent say digital banking defines their experience, only 23% even hold credit union memberships and just 14% consider one to be their primary financial institution. In fact, 37% say they’re likely to leave within the next year – more than twice the rate of older generations, according to a PYMTS Intelligence/Velera study. Let that sink in – credit unions are only capturing a small percentage of the next most powerful generation’s focus.

Instant Insights /

Credit Unions' Gateway to the Future: Aligning Financial Products With Gen Z Values

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