Younger generations crave authenticity and social responsibility paired with realistic financial solutions.

The numbers tell a stark story: The average American is approximately 39¹ years old but the average American credit union member is 53² — which is 14 years older. In fact, only 20% of Americans under 40 use credit unions.³

For credit unions, this isn’t just a growth challenge. It’s a sustainability threat.

As demographics shift and digital-first competitors capture younger generations, credit unions face a pivotal moment. The good news? Research shows these generations want exactly what credit unions offer: community values, financial guidance and authentic relationships. The challenge lies in bridging the gap between what younger members say they want and how they behave.

Understanding the values reality gap

Gen Z and millennials live with a fascinating contradiction that shapes their financial lives. Research reveals that they strongly value sustainable, mission-driven brands. In fact, 84% of Gen Z say they buy based on beliefs, with a five-point jump to 64% among those 18-26 years old in the past year saying they’re activists via brand choice.⁴  Meanwhile, they’re also among the biggest consumers of fast food and fashion.

This isn’t hypocrisy. It’s aspirational values colliding with economic reality.

Consider the financial pressures: 18% of millennials and 12% of Gen Z believe they’ll never own a home.⁵  Financial insecurity continues to challenge Gen Z and millennials. Thirty percent of Gen Zs and 32% of millennials say they are not financially secure. And 56% of Gen Zs and 55% of millennials live from paycheck to paycheck.⁶ Student loan debt has fundamentally altered life trajectories, forcing moves back home and delaying major investments.

These generations don’t need judgment about the gap between their values and spending. They need financial partners who understand the tension and can help navigate it.

What younger members really want

Forget simple convenience: Younger generations seek optimization. After all, they are used to personalized vitamin regimens based on blood work, makeup perfectly matched to their skin by AI, and fitness programs designed for their specific health situations and goals. They want the same from their financial institutions: financial tools and advice tailored precisely to their needs, delivered exactly when they need them.

“The easiest way to break trust is when you offer things that don’t make any sense to that consumer,” said Vanessa Stock, Vice President of Product Management and Strategy for Credit Union Solutions at Fiserv. “You’re seeing every transaction, all their data, so they expect you to use that to personalize their experience and be relevant.”

“The good news is the credit union industry is in a very strong position to win this group because we have that level of trust. It’s about translating what we’ve done historically in a way that’s authentic for this younger generation,” said Stock.

 

Practical strategies that work

Let’s have a look at what resonates with today’s younger generations.

Make financial education stick

Despite being digital natives, Gen Z and millennials visit branches more frequently than older generations. In fact, 76% of Gen Z and 80% of millennials conduct in-person branch transactions within a typical month⁷ – not necessarily for transactions but for conversations about mortgages, financial planning and major life decisions. They want guidance and education, and that’s where credit unions can show up.

Traditional financial literacy falls short because it doesn’t acknowledge reality. Instead of lectures about ideal budgeting, credit unions can normalize the struggle. Consider acknowledging that choosing between student loan payments and saving – a challenge many young members face – can feel impossible and then help them figure out a solution that works for their situation.

Deliver education through micro-moments: three-minute videos explaining credit scores, in-app notifications about spending patterns or text-based coaching for specific goals. Meet them where they are: on their phones, between classes, during late-night anxiety scrolls.

Partner with schools and employers to embed financial wellness into existing routines. But make it relevant: How do you negotiate your first salary? Does that side hustle need a business account? Do I really need to give up my coffee subscription in order to save?

Build authentic digital relationships

With younger generations, transparency drives trust. Having grown up amid misinformation and social media skepticism, they value straight talk about money. When surveyed, high schoolers ranked parents and family as their top source for financial information, with social media second.⁸ But the trust levels differ dramatically: They’re influenced by social platforms but remain wary of the information there. 

Avoid trying too hard. Gen Z has finely tuned sensors for inauthenticity. Instead of chasing every trend, focus on being genuinely helpful. Answer the questions they’re really asking: How do I start investing with $50? What happens if I miss a loan payment? Is this financial advice I saw online legitimate?

One credit union in Ireland launched TikTok content and within a year attracted thousands of fans from Ireland and beyond.⁹ Its secret? Sharing real stories and practical tips with a side of good humor. The same faces appear regularly, sharing real stories and practical tips.

Use employees and members as your influencers. Their stories resonate more than polished campaigns. A member explaining how they saved for their first car or an employee sharing their student loan payoff journey creates real connection.

Deliver products that bridge values and reality

Gen Z and millennials are drawn to mission-driven organizations like credit unions, especially when those organizations prove themselves to be socially responsible. But mission alone won’t capture market share if the products don’t perform. Yes, offer green loans and sustainable investment options, but pair them with competitive rates and seamless digital experiences for an authentic experience that also supports members’ best interests.

Create products acknowledging their life stage: graduated savings accounts that grow with income, mortgage preparation programs for those years away from buying a home, or “practice investing” accounts with low minimum requirements. Show them you understand that they’re not ready for everything today, but that you’re preparing them for tomorrow.

Products and tools should address their pain points too. Student loan payments are resuming after pandemic-era pauses; growing buy now, pay later transactions are becoming a struggle to repay; and consumers are having a hard time seeing why retirement savings matter when they may never own a home. Provide tools that help them see paths forward, not just current shortfalls. Consider how you name your products. Gen Z and millennials need deposit accounts, but if you are still calling them checking accounts, you might be missing an opportunity to speak to them in their language.