Good Governance: Are credit unions ready for Gen Z?

It’s time to welcome the next generation with open arms and a board seat.

The demographic challenges facing credit union membership are cause for ongoing conversations at every gathering of boards and executives. A declining Baby Boomer population has been a trusted foundation for credit unions. Millennials (born between 1981 and 1996) have challenged us to polish our branding, refresh our delivery systems and move toward expensive and risker digital platforms to enhance service. Today credit unions straddle a wide age range with younger members harder to recruit to our membership. It’s time to welcome the next generation with open arms and possibly a board seat or two.

Gen Z is a gift to our cooperative banking model, and its members will represent 40 percent of the U.S. population by 2020.  Born between 1997 and 2016, members of Gen Z hold a set of core values and interests similar to what has made CUs great. Unlike their predecessors, Gen Z is concerned about financial security, building wealth, the economy and having a social impact.

These approximately 17 million young folks are the most racially diverse population in a while. They are more tolerant of racial, sexual and gender diversity than previous generations.

 

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