Why Gen Z can be credit unions best friend or worst enemy

In the current economic environment, Generation Z consumers struggle more than older consumers. Nonetheless, they are a growing demographic that financial service providers — including credit unions (CUs) — need to watch.

This generation is made up primarily of digital-first consumers who manage and spend their money via digital channels. Financial institutions (FIs) can increase engagement among Gen Z consumers by offering innovative products and services.

Data shows, however, that Gen Z consumers can be fickle. For example, 4 in 10 Gen Z CU members say they switched FIs in the past year. In contrast, only 4 in 100 baby boomers and seniors switched. Lack of innovation drives Gen Z away. In fact, Gen Z are 2.5 times more likely than baby boomers and seniors to say they would leave FIs that don’t innovate.

There is a disconnect between CUs’ innovation roadmaps and what Gen Z members want. CUs must align their innovation agendas with Gen Z’s needs and expectations.


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