The financial landscape is rapidly evolving, and credit unions must adapt to meet the changing needs and expectations of younger generations. Millennials and Gen Z will become a growing force in the market, and their preferences are reshaping the industry. To attract and retain these valuable members, credit unions need to understand what younger members will be looking for in 2025. One of the areas this group has historically been interested in is investing. In the article we are exploring what younger members are looking for when it comes to investing.
Here are the top three things that should be on every credit union's radar:
1. Digital-first investing solutions
Millennials and Gen Z have grown up in a digital world. They're accustomed to managing every aspect of their lives through their smartphones and online platforms, and their investments are no exception. They expect seamless online experiences, user-friendly interfaces, and 24/7 access to their investment accounts and tools.
For credit unions, this means prioritizing digital innovation and offering a comprehensive suite of online and mobile investing services. This includes:
- Intuitive investing platforms: Provide a user-friendly platform, accessible via mobile app or website, that allows members to easily manage their investments, track performance, and make informed decisions.
- Integrated investing experience: Seamlessly integrate investment services into the digital banking experience, allowing members to manage their investments alongside their traditional banking activities. This eliminates the need to navigate separate apps or websites.
- Real-time information and tools: Offer real-time market data, portfolio tracking tools, and personalized insights to empower these younger investors
2. Low barriers to entry for investing
Many young people are new to investing and may feel intimidated by the process. They need a simple and non-intimidating option to get started.
Credit unions can empower young investors by:
- Offering low minimums: Reduce or eliminate minimum balance requirements for investment accounts, making it easier for young people to begin their investment journey.
- Providing fractional shares: Allow members to purchase fractional shares of stocks, making it possible to invest in high-priced companies with smaller amounts of money. This is especially helpful for young investors who want to diversify their portfolios with self-directed investing but may not have the funds to purchase whole shares of expensive stocks.
- Offering a variety of investing options: Provide options for beginners to invest in diversified portfolios with minimal effort. Pre-built portfolios offer a curated selection of investments, while hybrid models allow for some customization with guidance. This lowers the barrier to entry for those who may not be comfortable selecting individual stocks.
3. Investing with impact: Aligning values and interests
Millennials and Gen Z are increasingly seeking ways to align their investments with their personal values and make a positive impact. This includes supporting companies that prioritize environmental sustainability, social responsibility, and good governance, as well as investing in initiatives that resonate with their interests and benefit their communities.
Credit unions can cater to these preferences by:
- Offering values-aligned investment options: Provide access to Environmental, Social, and Governance (ESG) funds, Socially Responsible Investment (SRI) options, and other impact investing strategies. This allows young investors to support companies and causes that align with their beliefs.
- Facilitating local investments: Offer investment products that support local businesses and community development projects. This allows members to directly invest in the economic growth and well-being of their communities.
- Curated investments: Curate investment portfolios focused on specific themes or interests, such as renewable energy, technology, or healthcare. This allows members to invest in areas that resonate with their passions and knowledge.
Eko: Democratizing investing for credit unions
Eko is a leading provider of integrated investment solutions designed specifically for credit unions. Our platform empowers credit unions to attract and engage younger members by offering a modern, user-friendly investing experience that meets their unique needs. Visit our CSS website to learn how Eko can help you drive membership growth and operational excellence at an attractive price.
