13 Mar The ACTUAL Importance of Reaching Millennials and Gen Z: A Call to Credit Unions for Greater Engagement and Connection

One of the most crucial demographic shifts is the rise of Millennials and Gen Z—two generations that are now taking center stage in both society and the economy. As a credit union, if you haven’t already begun shifting your focus toward these younger generations, now is the time to act. Millennials (born 1981-1996) and Gen Z (born 1997-2012) represent a significant portion of the market, and their financial habits, needs, and values are different than what we may be used to with previous generations – this is now shaping the future of banking.

Why Millennials and Gen Z Matter for Credit Unions

Millennials and Gen Z are quickly becoming the dominant consumer groups in the U.S. economy. As of 2023, Millennials account for approximately 30% of the U.S. population, while Gen Z is rapidly growing in numbers, making up 27% of the population. Together, these two generations represent nearly 60% of the potential consumer base for credit unions.

The statistics are clear: these groups have substantial spending power, and they are increasingly looking for financial institutions that understand their needs. According to a 2022 study, 72% of Millennials and 63% of Gen Z prefer to bank digitally, using mobile apps and online platforms. This preference for digital channels underscores the need for credit unions to embrace technology and modernize their approach to remain competitive and relevant in a crowded market.

The Need for Greater Awareness: A Generational Shift in Financial Habits

While Millennials and Gen Z are tech-savvy, they are also facing unique challenges when it comes to financial well-being.

Both generations are deeply concerned about issues like social justice, environmental sustainability, and transparency in the financial services industry. This is where credit unions have an edge. With their emphasis on community, member-first service, and ethical business practices, credit unions align well with these values. But simply offering competitive interest rates and a local touch isn’t enough. Credit unions need to ensure they are visible, relevant, and engaging in a way that speaks to these younger generations.

How Credit Unions Can Relate and Thrive with Millennials and Gen Z

1. Embrace Digital Transformation Millennials and Gen Z demand convenience. Digital banking is a must. Credit unions must invest in user-friendly mobile apps, robust online banking services, and instant customer support through live chat or social media platforms. With many Gen Z members being digital natives, ensuring seamless online and mobile experiences is key.
2. Focus on Financial Literacy Both Millennials and Gen Z are eager to learn more about personal finance, from managing student debt to investing for the future. Credit unions can stand out by offering free financial education resources, webinars, and tools to help members understand budgeting, saving, and investing (and getting the word out about these offerings!). By empowering these generations with knowledge, credit unions can create long-term relationships based on trust and value.
3. Promote Ethical Banking Practices Millennials and Gen Z are more socially conscious than previous generations. They care deeply about where their money goes and how it impacts the world. Credit unions that highlight their commitment to sustainability, social impact, and ethical lending practices will appeal to this demographic. Highlighting the positive influence of their investments—such as supporting local businesses, providing affordable housing loans, or backing real people in need—can set your credit union apart.
4. Engage Through Social Media and Influencers Social media is where Millennials and Gen Z spend a significant amount of their time. Credit unions must go beyond traditional marketing and engage with these audiences on platforms like Instagram, TikTok, and Twitter. This is where storytelling comes into play—share your credit union’s values, success stories, and initiatives that resonate with younger members. Partnering with micro-influencers who align with your brand values can also help amplify your message.
5. Create Customized Solutions for Their Unique Needs Millennials and Gen Z have very different financial priorities and challenges than older generations. Many Millennials are navigating student loan debt and trying to balance saving for retirement with paying off loans. Gen Z, meanwhile, is starting to enter the workforce and is more focused on budgeting and building credit. Credit unions can offer tailored products, such as low-interest loans, first time homebuyer programs, and financial wellness programs, that meet the specific needs of these younger generations.
6. Foster a Community-Centered Approach One of the core values that credit unions already embody is community. Millennials and Gen Z are increasingly looking for financial institutions that can build a sense of community and connection. This is a perfect opportunity for credit unions to emphasize their roots in local communities, offering not just financial services, but a place to thrive, grow, and support one another.

The Takeaway: Don’t Miss Out on the Future of Banking

Millennials and Gen Z are not just the future—they are the present. Credit unions must adapt their strategies to meet their expectations as these two generations continue to make up a larger portion of the financial market. By embracing digital transformation, prioritizing financial literacy, promoting ethical practices, engaging on social media, offering customized solutions, and nurturing community connections, credit unions can build lasting relationships with these younger generations.

This is a call for greater awareness: these generations are here, and their financial influence is only growing. The time to act is now. Credit unions that take the time to understand and connect with Millennials and Gen Z will not only secure their place in the future but will also help shape a more sustainable and community-driven financial ecosystem.