Winning Over Generation Z

By: David Fehrer , EVP/Chief Strategy and Innovation Officer, Unitus Community Credit Union

Generation Z is quickly becoming the future of the financial industry, but here’s a startling fact: only 4% of them are members of credit unions. Think about that for a moment. This digitally savvy, financially conscious generation is reshaping how we think about money, yet credit unions haven’t fully tapped into their potential. As someone who’s dedicated to strengthening the credit union movement, I see this as both a challenge and an incredible opportunity.

To connect with Gen Z, we have to understand what drives them. They grew up watching financial instability during the Great Recession, which made them more cautious and strategic with their money. They want financial security, but they also value experiences over material possessions and expect the companies they engage with to reflect their social values. If we’re serious about building relationships with this generation, we need to meet them where they are—on digital platforms—and align with what matters most to them.

The Financial Mindset of Gen Z

Gen Z’s approach to money is shaped by one overarching goal: security. This is a generation that has watched financial crises unfold in real-time, making them more risk-averse and focused on saving. They start early, invest in their futures, and avoid debt whenever possible. They value experiences over things. Instead of chasing material wealth, they’re looking for financial flexibility that allows them to enjoy life now while securing their future.

This mindset opens a door for credit unions to offer more than just products—we can offer guidance. Our role can be to empower them with the tools and knowledge to make those early investments, avoid debt traps, and create sustainable financial habits. But first, we need to meet them where they’re already looking for this information: online.

Gen Z Is Digital-First, But Craves Authenticity

Let’s not beat around the bush—Gen Z lives in a digital world, and they expect their financial services to keep pace. According to Bankingly , a staggering 75% of Gen Z prefers digital banking over in-person interactions. Convenience, speed, and user-friendly apps are non-negotiable for them. However, simply offering online banking isn’t enough. They want seamless, mobile-first experiences that allow them to do everything—from opening accounts to moving money—without ever stepping into a branch.

But here’s where things get interesting. St. Louis Fed reports while 61% of Gen Z turns to social media for financial information and 59% consult friends and family, they actually find advice from financial professionals more helpful. This is the gap credit unions can fill. We have the expertise, but we’re not necessarily engaging with them on the platforms they trust most. If we can meet them on social media with accessible, value-driven content, we can establish ourselves as trusted financial partners.

This is where credit unions need to embrace a shift in communication. Rather than relying solely on traditional marketing, we should focus on creating relatable, informative content on platforms like Instagram, TikTok, and YouTube. Think financial literacy tips, explainer videos, and real-life member success stories. By speaking their language and addressing their concerns, we can start building relationships in the spaces where Gen Z is already active.

Transparency and Values: The Cornerstones of Trust

Gen Z is more likely to switch financial institutions than any previous generation if they feel they’re not getting what they need. Why? Because they value transparency and authenticity above all. This generation can sniff out insincerity a mile away. To win them over, we need to show—not just tell—how we align with their values.

Credit unions have a unique advantage here. As member-driven organizations rooted in local communities, we are naturally aligned with many of the values Gen Z holds dear. We can highlight our commitment to social responsibility through green loans, sustainable business practices, and community-focused initiatives. This isn’t just good for business; it’s what Gen Z expects. Offering eco-friendly lending products and demonstrating a commitment to environmentally friendly practices can enhance a credit union's appeal. By tracking and communicating the impact of these initiatives—such as carbon footprint reductions—credit unions can show they are genuinely invested in sustainability and social responsibility.

In fact, when asked why they choose certain financial institutions, many in Gen Z cite a company’s ethical practices and social impact as deciding factors. This means transparency about fees, clear communication, and demonstrating a genuine commitment to positive change are no longer optional—they’re essential. And let’s be clear: Gen Z will hold us accountable. They want to see action, not just hear promises.

The Power of Social Media and Influencer Partnerships

While only 42% of Gen Z currently turn to financial institutions for information, social media remains their top source, according to St. Louis Fed . This presents a prime opportunity for credit unions to step in and position themselves as trusted financial advisors by engaging with Gen Z on the platforms they already frequent. And we don’t have to do it alone.

Partnering with influencers who align with our values can be a powerful way to extend our reach. Influencers already have the attention of Gen Z, and they can speak to their audiences in ways that feel authentic and relatable. By collaborating with influencers who understand personal finance, credit unions can create educational content that resonates, builds trust, and drives membership. Take a look at Unitus’ collaboration with college football quarterback Dillon Gabriel . His influence and credibility lend an important voice to our financial education series on social media.

Products That Reflect Gen Z’s Needs

Let’s talk about products. It’s not enough to simply offer standard checking and savings accounts anymore, although that is where we should start. Creating youth products to engage and educate Gen Z early in their financial journey is key to long-term membership. Youth checking, savings, and small-dollar credit builder loans are some of the first products these members will have. Extending those products out to include investing will start this generation on a path toward building wealth.

Gen Z is entrepreneurial, with many embracing side hustles and small businesses as part of their financial plan. Credit unions can support this entrepreneurial spirit by offering micro-commercial loans and credit-building programs.

Experience-based rewards programs that focus on cash-back for environmentally friendly purchases or offer perks tied to social causes will resonate deeply with this generation. Gamifying products like rewards and education are great ways to keep this generation engaged. Additionally, tools that promote financial education—whether in-app features, workshops, or partnerships with schools—are essential for building trust and fostering long-term relationships.

Giving this generation access to the instant gratification lifestyle they are accustomed to is the very definition of “meeting them where they are.” Buy Now Pay Later (BNPL) products are especially attractive to Gen Z, as it gives them the opportunity to get their hands on the must-have product of the moment while providing them the flexibility to pay over time without interest or an impact to their credit.

Products that align with this generation’s values can also help us meet their needs. Green loans for electric vehicles or bikes give credit unions the opportunity to highlight their social responsibility while giving Gen Z the buying power to make sustainable purchases.

Capitalizing on Financial Trends

To remain relevant to Generation Z, credit unions must keep a close eye on several emerging trends in the financial industry. One of the most significant developments is embedded finance, which integrates financial services with other industries, enhancing convenience and streamlining transactions. As I mentioned, BNPL is a strong option to help this generation manage their finances more easily. Credit unions can also partner with third-party platforms to offer their services in places where Gen Z already shops, thereby increasing visibility and engagement.

Another critical trend is the rise of decentralized finance (DeFi) and blockchain technology. As cryptocurrency gains traction among younger investors, credit unions have the opportunity to offer services that allow members to buy and sell digital currencies. Blockchain technology can streamline traditional financial services through automated, smart contracts, providing an additional layer of security and transparency—qualities that resonate with Gen Z's demand for authenticity and trustworthiness.

Hyper-personalization of interactions will be essential for credit unions as they look to the future. By harnessing AI and data analytics, credit unions can deliver tailored experiences that cater to the unique preferences of each member. Generation Z values personalized services, so those credit unions that effectively use technology to create customized solutions will be better positioned to stand out in a competitive marketplace.

In a world where everything is at our fingertips, the demand for mobile and digital apps continues to grow. Credit unions can engage members by providing comprehensive digital platforms that serve as one-stop shops for banking products, investment opportunities (including stocks and cryptocurrencies), and insurance services. This integration not only keeps members connected but also reduces the need for them to seek services elsewhere.

The concept of open banking is gaining momentum in the U.S. This innovative approach allows consumers to share their financial data securely with third-party providers, enabling a range of financial services and products to be offered seamlessly. After successful implementations in other countries, it’s crucial for credit unions to adapt quickly. Generation Z values transparency and the ability to choose their financial service providers, so moving toward an open banking model will not only meet these expectations but also enhance member trust and loyalty. By embracing open banking, credit unions can offer personalized services and foster competition, ultimately creating a more engaging and responsive banking experience for their members.

The Time to Act Is Now

Generation Z is shaping the future of finance, and credit unions have a golden opportunity to connect with them on a deeper level. By embracing digital innovation, aligning with their values, and delivering transparent, meaningful products and services, we can position ourselves as the financial institutions of choice for this forward-thinking generation. But to do this, we must act now, before fintechs and big banks take the lead.

Let’s seize this opportunity to innovate, build trust, and offer meaningful financial solutions that align with this generation’s unique needs. By doing so, we not only secure the future of our organizations but also strengthen the financial futures of Gen Z. Let’s start the conversation today—on their terms, on their platforms, with authenticity and purpose.