Report: 30% of Gen Zers, 21% of Millennials Unaware of CU Membership Option
But, 47% of these generations combined are willing to switch to a credit union, according to an Apiture survey.
Thirty percent of Gen Zers have not only chosen a primary financial institution that is not a credit union – they are also unaware that credit union membership is even an option for them. The same is true for 21% of millennials.
That’s according to a new report, “Attracting Gen Z and Millennials: Seven Essential Strategies for Community Banks and Credit Unions,” from the Wilmington, N.C.-based digital banking services provider Apiture. The report was based on a survey conducted by The Harris Poll on behalf of Apiture in February 2024 of 2,004 U.S. consumers ages 18 and older; 38% of respondents were boomers, 29% were Gen Xers, 25% were millennials and 8% were Gen Zers.
However, there’s hope for credit unions looking to convert younger bank customers to credit union members – 47% of Gen Zers and millennials combined are open to switching their primary financial institution to a credit union, according to the report.
At the time of the survey, just 14% of Gen Zers and 20% of millennials said they considered a credit union their primary financial institution. Most Gen Zers (80%) and millennials (75%) said they considered a large bank their primary financial institution.
“Like older consumers, Gen Z and millennials are most likely to choose a large, national bank,” the report stated. “However, they indicate an openness to switching institutions, and banks and credit unions that cater to the specific preferences of younger consumers can win a greater share of this strategically important group.”
The report offered seven keys to attracting Gen Zers and millennials:
- Provide a modern, highly available digital experience. According to the report, 80% of Gen Zers and 81% of millennials said digital banking is at the core of their banking preferences, and they also expect it to be available 24/7. About half of Gen Zers (51%) and millennials (58%) are currently satisfied with their financial institution’s digital banking availability, the report found.
- Offer in-demand digital features that appeal to younger consumers in particular. These include P2P payment services, account-to-account transfers, budgeting and expense tracking tools, and credit score monitoring.
- Make cybersecurity a top priority. The survey found that 60% of Gen Zers and 54% of millennials consider security a top factor when choosing a financial institution.
- Give new members the ability to quickly and easily fund an account online. The report found that 41% of Gen Zers and 38% of millennials consider a digital account opening option a top need when choosing a financial institution.
- Don’t sleep on artificial intelligence. According to the report, more than 25% of Gen Zers and millennials can envision using AI-powered financial assistants within the next five years. Other AI use cases sparking the interest of younger generations, the report found, include using AI for financial education, and augmented or virtual reality to support their banking activities.
- Advertise your values and ethical practices. The report found that 28% of Gen Zers would consider switching away from a large bank to a community bank or credit union due to ethical or moral alignment with the smaller institution’s practices.
- Make it easy for new members to move over functions such as bill payments, direct deposit and subscription payments to your credit union.