5 Gen Z marketing mistakes that credit unions must avoid

Credit Unions have adjusted to the marketing trends and preferences of Millennials, but there is a new generation that is here and ready to shake up the financial industry. Marketing to Gen Z is an exciting new frontier and the latest buzz amongst marketers at Credit Unions.

Gen Z, those born from the mid-1990’s to early 2000’s, are just coming into their own financially, and there is a great opportunity to reach a previously untapped member base. However, they are very different previous generations and your marketing techniques must be different as well. Avoid these following mistakes to attract young customers to your bank.

1. Don’t Mistake Gen Z for Millennials

Gen Z-ers have positioned themselves as a generation unlike the previous few. They are referred to as the “Throwback Generation” because of their old-fashion values. Unlike Millennials or Gen X, Gen Z values financial security over flash and style. They work hard, are frugal and realistic.

Gen Z’s defining childhood moment was the housing and stock market crash in 2007. Many of them experienced the devastation of losing their childhood homes and witnessed their parents losing their jobs. As a result, they value financial stability and security.

If your credit union is to market to this new generation, you must adjust your marketing accordingly. Although they may use the same mediums as Millennials, what catches their attention will be very different. Gen Z is less interested in flash and more interested in what your bank can offer them towards financial security.

2. Marketing to Their Parents Instead

Gen Z are very much in charge of their own finances and financial future. Although they are young, they’re already earning their own money through hard work and are interested in putting that money to good use. Their parents may be required to drive them to the credit union (those who are still teenagers), but Gen Z-ers are making their own financial decisions.

A Gen Z credit union marketing strategy should be geared towards them, as opposed to their parents. The parents offer guidance, but Gen Z has control. With the rise of technology, many in Gen Z are managing their money and making decisions from their mobile-apps on their phone, which leads us to the third mistake.

3. Ignoring Mobile Banking

It’s no secret that many people live by their phones, and Gen Z is no exception. Although many Gen Z-ers come to the physical credit unions, do not mistake that for preferring it. If your credit union offers online and mobile apps, they will prefer and take advantage of that.

Mobile-apps give Gen Z more control over their financial decision making and less dependency on their parents. Additionally, it’s more convenient and will give your credit union an edge. A Gen Z marketing strategy must include a strong mobile presence.

4. Not Offering Educational Materials

Gen Z-ers are eager to achieve financial independence. Because of this, they will quickly take advantage of any financial advice and education. By offering financial education services, you will gain authority, respect, and attention.

Likewise, parents often feel helpless to give good financial literacy advice to their children. A successful Gen Z marketing strategy would include offering financial materials to both children and parents.

5. Ignoring Digital Marketing

Without an online presence, especially a mobile one, your bank mostly does not exist to Gen Z. Most of their information, purchasing, and socializing happens online. To reach them, your financial institution must learn Gen Z trends and adapt your strategy accordingly. Boost your presence on social media, especially Instagram and Twitter.

Are you interested in learning more about the financial and behavior trends of Gen Z? Download our free report today!