A new Vertice AI report based on a panel discussion with Gen Z students found many younger consumers do not distinguish between banks and credit unions, with several participants saying they view both simply as "banks."
The report summarized a discussion that took place during the recent Southeast Credit Union Innovation Day at Georgia Tech's Advanced Technology Development Center. It included five students ranging from a high school senior to graduate students studying finance and fintech. Participants discussed topics including app usage, banking relationships, branch visits and financial decision-making.
Asked whether Gen Z sees banks and credit unions as distinct institutions, one high school senior participating in the panel responded: "Honestly, they are kind of one and the same. I don't fully understand the difference."
A graduate student in finance participating in the panel said many of his peers do not understand how credit unions work or how they differ from banks.
"A lot of my friends don't even know how credit unions work," the student said during the discussion. "But when I tell them about this concept of member-based or community-driven, their eyes go wide and they are fascinated by this concept. But they do not know how it works because it's not marketed enough or it's not advertised enough."
The report also found panelists were less likely to rely on a single primary financial institution and instead used multiple apps for different financial needs.
"It's not one app or one financial hub for all transactions. It's use case basis to be very honest," one graduate student in finance said.
Panelists said they relied on multiple apps for different financial needs, including traditional banking apps, peer-to-peer payment platforms, investing apps and cryptocurrency tools.
The discussion also highlighted how little panelists relied on physical branches, ATMs and cash.
Several participants said they had not visited a branch in years, while one graduate student in finance said he no longer remembered his ATM PIN.
One high school senior participating in the panel said he does not carry a physical wallet and instead relies on Apple Pay and a digital ID stored on his phone.
Panelists also described parents as a major influence on financial decisions, including where they bank and how they manage money.
"I think the biggest misconception is how important the voice of our parents is in making financial decisions. Whether it's choosing to bank with Wells Fargo or choosing to keep $20 in my wallet," one sophomore studying finance said during the discussion. "My opinion, whether it was correct or incorrect, was completely deferred to my dad because he's been alive for so many more years and handles more money."
Several participants said family members influenced their banking relationships, while others said advice from parents shaped habits including carrying cash or keeping certain accounts open.
Participants also said they wanted financial tools that were more proactive in helping users manage spending and upcoming expenses.
"I want something like a financial GPS that could tell me: Look, your insurance bill is coming up, which is X amount, and you've already spent 40% more on your food bills. So, this is how you should organize the rest of the month. I do not want somebody to tell me something after I have already done that," one graduate student in finance said during the panel discussion.
Other participants said they wanted better visibility into recurring subscription charges and spending habits.
The report said the discussion highlighted ongoing challenges for credit unions trying to connect with younger consumers, particularly as Gen Z participants described banking relationships built around multiple apps rather than a single primary financial institution.
Mitch Rutledge, CEO of Vertice AI, said the discussion was intended to give financial institutions direct feedback from younger consumers rather than relying on assumptions about Gen Z banking behavior.
"Too much of the industry conversation about Gen Z happens without hearing directly from Gen Z," Rutledge said. "This discussion offered something more valuable than trend speculation: An unfiltered view into how young consumers are approaching money, financial decisions and digital financial tools. Community financial institutions need a clearer understanding of Gen Z's priorities and expectations if they want to meaningfully compete with fintechs and neobanks."
Vertice AI's full report, "From Branches to Apps: Gen Z on Money and Banking," is available here.
Joyce Moed can be reached at joyce.moed@arc-network.com.
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