Washington, DC (January 28, 2026) |
CUCollaborate, a leading credit union consulting firm that delivers outcomes-driven analytics for credit unions, released its 2026 Credit Union Consumer Perception Report, surveying 1000 consumers across the US in December 2025 to gauge their opinions on credit unions. More than three-quarters of U.S. consumers stated they are familiar with credit unions, and 75% hold a positive impression. Nearly 70% describe credit unions as trustworthy, and a majority recognize their advantages in fees and rates compared to traditional banks. Yet only one in four consumers banks primarily with a credit union, and positive sentiment is in decline with younger bankers
Younger generations like Gen Z represented a sharp shift in credit union perception from older generations. Among respondents 18-29 years old, 36% indicated they had only heard the term "credit union" without having a deeper understanding or had never heard of the term at all. 44% said they were somewhat familiar with credit unions, and a mere 20% reported being very familiar with them. And, while most Gen Z consumers have a positive impression of credit unions (63%), this is a stark decrease from older generations (81%). This represents a 22% decrease in the overall positive impression of credit unions in Gen Z.
“Credit unions are struggling to connect with younger generations due to confusion about eligibility and misconceptions that credit unions do not offer the same convenience and digital experience as their banking counterparts,” said Sam Brownell, Founder & CEO at CUCollaborate. "Addressing convenience concerns, clarifying eligibility, modernizing onboarding, and aligning messaging with what truly motivates consumers are no longer incremental improvements; they are leadership decisions that directly affect growth, relevance, and long-term sustainability."