Gen Z isn’t the future of banking—they’re already here

Generation Z is already spending trillions of dollars, switching financial institutions for better service and learning about money from TikTok. If you’re still marketing with a 2005 playbook, you’re not just behind, you’re obsolete.

Members of Gen Z, the oldest of whom are approaching 30, are in the midst of their “Choose Your Own Adventure” era (although I admit that reference may be lost on this cohort). While the younger members of this generation are navigating through adolescence, the older ones are well into adulthood—building lives and careers, buying houses and cars, saving money, starting families. Gen Z’s financial journey isn’t linear—it’s a branching path of choices, from budgeting apps and crypto wallets to payment apps and social media shopping.

According to Velera’s CU Growth Outlook study, Gen Z's annual spending is projected to reach $12.6 trillion by 2030, representing 18.7% of total global spending. And they’re not waiting for a banker to guide them—they’re searching, scrolling, and swiping their way to answers.

Gen Z doesn’t stick around out of habit. They’re curating their financial relationships based on trust, transparency, and relevance. In fact, Gen Z credit union members are twice as likely to consider leaving than the average member. Their top reasons for switching financial institutions include:

Credit unions have an edge in trust, but they must prove it daily through digital experiences that feel personal, not transactional. Reliability, responsiveness and clarity matter more than legacy branding.

Knowing that Gen Z wants transparency, instant access, and real value, here's how credit unions can actually connect with them:

Ditch the jargon. "Flexible overdraft facility" means nothing to someone who tracks spending with emojis. Even "checking account" might feel outdated to someone who's never written a check.

Gen Z is DIY by default—they’re not waiting for financial institutions to teach them. They’re building their own financial literacy through short-form videos, Reddit threads, and budgeting apps that feel more like games than spreadsheets. Credit unions have an opportunity to show up as guides, not just marketers. Instead of pushing products, offer bite-sized, relatable education that helps Gen Z make smarter decisions—whether it’s a quick explainer on credit scores, a budgeting challenge on Instagram, or a “what if” scenario powered by AI.

Hint: It's not always your homepage. It's TikTok, YouTube Shorts, Discord. Be there. Be real. Be helpful.

28% of Gen Z trust social media (TikTok, YouTube, Instagram) for financial advice—nearly equal to their trust in financial institutions and older family members.

YouTube is the top platform across all generations, but TikTok and Instagram are especially influential for Gen Z.

They’re not just consuming content, they’re curating it. If your financial institution isn’t part of their digital ecosystem, you’re not part of their financial journey.

Gen Z craves real, consistent experiences across channels that reflect their identity and values, like sustainability and authenticity. Performative messaging won't cut it anymore—they can spot it instantly and will disengage if their experience doesn’t match the message.

This isn’t just about community involvement—it’s about alignment. If your brand claims to care about equity, climate or inclusion, your products, partnerships and service model need to reflect that. Authenticity builds trust. Consistency builds loyalty.

Think rewards, savings goals and budgeting tools that feel fun, not like homework. Real engagement comes from meaningful, relevant solutions. They expect financial services to be embedded into their daily lives, not something they have to seek out.

Embedded finance isn’t a feature, it’s a default expectation. They want tools that show up when needed—like auto-savings, Buy Now, Pay Later (BNPL), or investing through their favorite shopping or gaming apps. What’s more, they are willing to turn to AI for these features—62% of them are interested in using AI for “what if” scenario planning.

Mobile-first isn't optional. And if it takes more than three taps to do anything, you've already lost Gen Z. According to the CU Growth Outlook study, Gen Z is digital-first—but not digital-only. While 79% prefer to conduct financial activities online, 28% still prefer in-person financial advice, showing their desire for hybrid engagement, not just pure automation.

Once you’ve designed a banking ecosystem that caters to these expectations, don’t forget to tell them about it! Gen Z ranks digital onboarding 78% higher in importance than the average consumer, meaning thoughtful onboarding is crucial to retaining new members.

This emerging generation is financially savvy and loyal to brands that get them. Financial institutions don't need to be cooler. They need to be clearer, faster and more useful. If your onboarding still feels like paperwork, your app hasn’t been updated in years and your social strategy is nonexistent—it’s time to rethink what relevance looks like in 2025.

So . . . who's adapting? Who's getting left behind?