While millennials and Generation Z (Gen Z) often dominate the headlines for digital innovation, Generation X (Gen X) remains a powerhouse of economic influence. Currently navigating their peak earning years while simultaneously caring for children and aging parents, Gen X represents a critical demographic for U.S. regional and community financial institutions (RCFIs), as of the 2020 US Census this generation comprised approximately 58 million people (the second largest, only surpassed by millennials).
If a financial institution is vying to become their primary institution, they need to understand that this generational cohort is facing a unique set of pressures. For one, they are poised to receive the most wealth over the next decade via the great wealth transfer, yet many report feeling financially uncertain about their own retirement.
For credit unions, winning Gen X requires more than just checking accounts; it requires a strategy rooted in Anticipatory Banking. By leveraging data to predict needs before they are expressed and personalize engagement, credit unions can become the trusted advisors this generation desperately seeks.
What the latest research says about serving Gen X members effectively
For Gen X, digital channels are no longer just a convenience. They are the primary gateway to earning their trust and increasing their engagement. While they may not be as quick to switch providers as their younger counterparts, Gen X defines their primary financial institution (PFI) increasingly by the quality of digital engagement rather than branch proximity or where they choose to deposit their paychecks.
This generation values:
- Quality: When asked how essential the quality of a new provider’s digital banking experience was, Gen X and digital-native Gen Z stressed equally that it was essential. While not digitally native themselves, Gen Xers have developed a zero tolerance for technology friction. They expect a unified experience where mobile and online banking mirror one another seamlessly.
- Self-service efficiency: As the "sandwich generation" pressed for time, they prioritize features that allow them to handle complex tasks, like moving money or managing cards, without visiting a branch or sitting on hold.
- Protection: Gen X values when their institution takes steps to protect their data from financial fraudsters and hackers, while also being comfortable with their data being used to make relevant product recommendations. Gen X thinks when it comes to advancements in artificial intelligence in banking, the quickest initial impacts they foresee will be in security and fraud protection.
- Financial planning tools: Unlike Gen Z, who may prioritize savings buckets, Gen X is looking for digital tools that provide a comprehensive view of their financial health, helping them balance current obligations with future planning. This generation is finding themselves at a place where they are the custodian of not only their finances and their children’s—many for their aging parents as well.
- Consistency: Gen X is second only to baby boomers when it comes to longevity with their primary financial provider and were significantly more likely than younger generations to say their most important financial provider “is significant due to having been with them the longest”. Not so fast . . . don’t assume that means they’re ready to grow with your financial institution. This generation was significantly less likely to grow their deposits, loans, or other transactions-based banking actions in the next year, compared to younger generations. This generation also was the least confident that their current PFI would continue to be so in the coming year, indicating during the research study that while 61% of them plan to maintain the number of companies with which they have a financial relationship, 17% plan to grow that number and 14% plan to reduce.
Financial products in demand by Gen Xers
Current economics, the impending wealth transfer, growing families, retirement realities, and aging parents are heavily influencing Gen X’s product demands. When it comes to the spectrum of financial products available today, Gen Xers are in that particular place in one's financial journey where they are not in need of the basics—checking accounts, debit cards, credit cards, credit builder or Buy Now Pay Later loans. However, according to the National Association of Realtors, Gen X is the second largest homebuying population (just below baby boomers) and are growing in a particular area: multi-generational homes.
When surveyed, Gen X said that over the next year they are in the market for:
- Advisory and wealth management: Gen X is looking for extensive financial planning and investment services, seeking institutions to help them navigate the complexities of managing aging parents' finances, supporting their children during the college years, and securing their own retirement.
- Deposit and higher yield savings products: As they manage high expenses, Gen Xers are looking for competitive deposit products to grow their liquid assets and loan options that offer flexibility. Their interest in certificates of deposit, micro-trading or micro-investing, as well as long-term investing accounts are notable.
- Business banking: With many Gen Xers owning established businesses, there is a significant opportunity for credit unions to cross-sell business solutions that offer the same ease of use as their retail banking experience.
The best ways to approach Gen X
To bridge the relevancy gap, credit unions must adopt a unified approach to digital sales and service. Integrating onboarding, engagement, and growth activities into one seamless experience for account holders.
- Leverage data for anticipation: Use transaction and behavioral data to identify life events and preferences. If data shows payments to universities or elder care facilities, use those insights to offer relevant financial planning services or bridge loans. If a Gen X member is not using your digital channels now and growth of their accounts has stalled, outreach about the tools and features available digitally should be a high priority to prevent potential attrition.
- Educational content vs. hard sells: Gen X responds well to educational resources that help them solve specific problems on their own. This latch-key generation appreciates being led to water, not peppered with SPAM. Put in front of the right Gen Xers, content regarding student loan options for their children, estate planning, business or wealth transfer, and retirement strategies can position your credit union as a trusted ally who “gets them”.
- The "data-informed banker": Equip your staff with the same insights available in digital channels. When a Gen X member calls or visits, the representative should immediately see their potential needs, creating a cohesive conversation that reinforces trust.
What Gen X wants their credit union know
The gap between what Gen X consumers want and what they get is often widest regarding "relevancy." Gen X account holders want their financial institutions to know that they are looking for a partner, a trusted advisor, not just a processor. They want credit unions to move from reactive service to proactive guidance.
- Anticipate, don’t just react: Gen Xers want their financial institution to identify financial stress points before they become crises, to curate the best product recommendations and financial literacy tips direct to their inboxes or mobile devices so they do not need to waste hours doing research. Whether it is suggesting a loan consolidation, the ability to aggregate accounts into one easy to use experience, or flagging a savings opportunity, they value proactive insights.
- Value their loyalty: This generation is stickier than Gen Z, but that loyalty must not be taken for granted. Continuing to earn their trust by rewarding their long-term relationship translates with personalized benefits and recognition, not generic mass marketing.
- Humanize the digital experience: While they rely on digital channels, Gen X still values the "people helping people" ethos. They want digital tools that feel human, using data to offer empathy and relevant solutions rather than cold algorithms. But they’re also time-deprived and will leverage on-demand guides, 24/7 chatbots, and virtual appointments if offered.
By focusing on the key areas of digital channel excellence, data-informed product recommendations, anticipatory education, and conveniences blended with a human touch, credit unions can effectively engage Gen X and earn their loyalty, turning their financial complexity into a deepened, profitable, and long-lasting relationship.
Better understand and support every generation of account holder by downloading Alkami’s Generational Trends in Digital Banking Study 2025.
