How Credit Unions Can Appeal to Gen Z

In recent years, credit unions have seen a renewed opportunity to engage younger members, especially Generation Z. Known for their digital savvy and value-driven mindset, Gen Z is redefining expectations in financial services, seeking relationships with institutions that align with their values and provide personalized, flexible services. Here’s a look at how credit unions can effectively reach and retain this unique demographic.
 

1. Connect Through Values

Gen Z is particularly interested in organizations that prioritize community, social responsibility, and ethical practices. Research from The Center for Generational Kinetics shows that close to 60% of Gen Z would be more likely to support a brand if it actively advocates for a social cause they care about. 

Credit unions, with their people-over-profit approach, are well-positioned to connect with this generation by highlighting their commitment to supporting local communities and offering transparent, member-focused services. Showcasing these values through marketing, social media, and community involvement can establish a sense of trust and authenticity that resonates with younger members.
 

2. Establish a Digital-First Presence

With nearly constant access to digital content, Gen Z expects their banking experience to be seamless, intuitive, and available on demand. According to the 2022 Consumer Research on Digital and Mobile Banking Report, 79% of Gen Z say they prefer to manage all their finances online or through a mobile app.

Credit unions should prioritize a user-friendly digital presence that allows members to manage their finances with ease—from mobile banking apps to digital customer support options. By investing in accessible and secure technology, credit unions can create a convenient experience that caters to Gen Z’s digital preferences.

Several credit unions have already made strides in connecting with Gen Z through digital initiatives:

• Gulf Coast Educators FCU: Used predictive analytics and artificial intelligence to target potential Gen Z members, enhancing outreach through personalized marketing.
• Community 1st Credit Union: Enhanced their digital platform to appeal to Gen Z’s preference for quick, accessible communication by offering live chat, a texting service for banking questions, and a digital wallet with Apple Pay, Google Pay, and Samsung Pay. They also introduced an online education center with interactive learning modules on topics like auto loans and budgeting.
• OnPoint Community Credit Union: Offers a robust digital banking platform with features like mobile check deposit, person-to-person payments through Zelle®, and customizable account alerts. Their digital wallet integration supports Apple Pay, Google Pay, and Samsung Pay, catering to Gen Z’s tech-savvy lifestyle.

With a digital-first strategy, grounded in social media engagement, fintech partnerships, and data-driven insights, credit unions have a variety of tools at their disposal to effectively build connections with Gen Z members.

3. Engage Early with Financial Education

Financial literacy is a growing area of interest for Gen Z, who are navigating major financial decisions, often for the first time. In fact, 58% of Gen Z consumers believe that financial providers have a responsibility to help them become financially strong. Programs that offer financial education—such as budgeting tools, loan management tips, and workshops on saving—can make a credit union the go-to resource as young people move from high school through college and into the workforce.
 

Credit unions are finding effective ways to support early financial education:

• SchoolsFirst FCU: Recognizing the importance of teaching kids about money from a young age, SchoolsFirst launched the Diamond Award-winning “Money Smart From the Start” Youth Membership, and encouraged parents to open a membership for their child. 
• VyStar Credit Union: Created high school branches run by students, providing hands-on financial management experience and early relationships with young members as they prepare for adulthood.
• Zogo’s Financial Education App: Partners with credit unions to offer gamified financial literacy lessons that reward users for learning, making financial education fun and accessible.

Creating these connections early helps credit unions establish lasting relationships and position themselves as trusted resources in financial education, meeting Gen Z on their financial journeys.

4. Meet Members Where They Are

To maintain relevance, credit unions should consider connecting with Gen Z on platforms they already frequent, like TikTok, Snapchat, and Instagram, where relatable, informative, and sometimes humorous content performs best. These apps are the most popular among Gen Z, making them ideal channels for short, engaging videos that demystify financial concepts or share member stories, increasing visibility and making the credit union experience feel more approachable.

What makes these platforms even more valuable for credit unions is that nearly 80% of young adults report getting financial advice from social media, with younger generations like Gen Z and Millennials most likely to seek financial information on platforms like TikTok and Instagram from "finfluencers" or financial influencers. This presents a powerful opportunity for credit unions to position themselves as trusted and reputable sources of financial information. By stepping into this role, credit unions can provide young adults with accurate, reliable advice that not only helps them make informed financial decisions but also fosters trust and long-term member relationships.

Here are a few examples of credit unions who have utilized social media effectively to target Gen Z:

• Royal Credit Union: Leveraged TikTok to create relatable content, effectively connecting with younger audiences and earning a Diamond Award for their innovative approach.
• Truliant Federal Credit Union: Created a sub-brand called “Money Burst” to share quick financial tips on TikTok and YouTube. Featuring their playful mascot, Truceratops, the credit union produces both practical advice videos and humorous, relatable content that incorporates brand values. 
• Community Credit Union of Florida: Developed the “321 Financial Liftoff” series by partnering with local influencers from universities, NFL teams, and businesses to promote financial literacy. 

5. Develop Products for Every Stage of Life

Gen Z’s financial journey spans diverse life milestones, from financing a first car and taking out student loans to opening credit cards or saving for a post-college trip. As many in this generation are entering adulthood—often living at home, receiving family support, and largely child-free—they benefit from flexible products that adapt to their evolving needs.

By offering products tailored to these stages, such as first car loans, credit-building accounts, and travel savings plans, credit unions can build trust with young members. Cross-product incentives, like pairing savings accounts with credit-building or rewards programs, further encourage Gen Z to explore new offerings as their financial needs change.

Final Thoughts

Gen Z represents a unique opportunity for credit unions to forge long-term relationships rooted in shared values, digital convenience, and engaging content. By staying attuned to emerging trends and aligning with this generation’s priorities—from community impact to seamless digital experiences—credit unions can position themselves as trusted financial partners, building strong, lasting relationships that ensure continued growth and relevance.