6 ways credit unions can attract Gen Z members
A significant portion of the dollar earning and spending population — an estimated 1.7 billion people — will be entering into the economy in the coming years. Credit unions need to start considering how to reach this generation with unique values and exceptional digital fluency.
We’re sharing six ways your credit union can captivate Gen Z members and secure a place in the hearts and wallets of tomorrow’s financial leaders.
Understanding the Young Gen Z Population
Understanding the key traits of Generation Z is crucial for credit unions to captivate this demographic. Gen Z members are typically:
- Digital natives: Gen Z has grown up immersed in technology. You’ll need to make seamless digital experiences a top priority.
- Socially conscious: This generation values sustainability, social responsibility, and ethical business practices. Does your brand mission align?
- Individualistic: Gen Z seeks personalized experiences tailored to their unique needs and preferences. A cookie-cutter approach won’t work.
- Financially savvy: Despite their youth, many Gen Z members are economically savvy and look for credit unions that offer educational resources.
- Authenticity and community-oriented: While digital natives, Gen Z also craves authentic connections and community engagement. You’ll want to strike a delicate balance between the allure of automation and the warmth of human interaction.
Understanding and catering to these Gen Z traits allows you to position your brand — or at the very least, your offerings — as a preferred financial partner.
Tactics Credit Unions Can Use to Attract Younger Members
Keeping Generation Z members satisfied requires innovative strategies. Here are six suggestions.
1. Offer a seamless digital and mobile-first banking experience
While over three-quarters of financial institutions believe embracing digital transformation is vital to their business success, not all have fully boarded the digital train just yet. But ask the typical Gen Z bank customer: there’s no alternative to a seamless digital financial experience.
Credit unions can meet the expectations of Gen Z by investing in a variety of digital and mobile features, including:
- Intuitive mobile app interface
- Seamless account management
- Easy fund transfers
- Convenient bill payment options
- Quick access to account information
- Secure mobile deposit functionality
- Instant alerts for transactions
When integrating additional digital offerings, avoid overlooking accessibility features for users with disabilities or neglecting cybersecurity measures. Regaining the trust of a Gen Z consumer can be a difficult task.
2. Provide personalized experiences tailored to each member’s preferences
According to research, 84% of Gen Z say their favorite brand treats them like individuals. For credit unions aiming to attract Gen Z members, providing personalized experiences is key.
If you’re currently taking a standardized approach to marketing and services, you may want to reconsider offering a more personalized experience. For example, your credit union can:
- Offer tailored financial advice based on individual goals and preferences
- Provide personalized recommendations for savings plans or investment opportunities
- Customize communication channels, such as email or text, according to member preferences
- Recognize members by name and remember their preferences during in-person interactions
While Gen Z values personalized experiences, preferences can vary significantly from person to person. Ensure each member feels valued and heard by providing a variety of options.
3. Highlight corporate responsibility and ESG (Environmental, Social, and Governance) goals
A company’s ESG rating measures its sustainability, social responsibility, and corporate governance. As a result of their social and environmental awareness, Gen Z prioritizes sustainable and ethical practices in investment and banking.
Showcase your commitment to these values by integrating ESG principles into your operations. Consider doing one or all of the following:
- Investing in renewable energy projects
- Providing loans for energy-efficient home upgrades
- Partnering with local organizations for environmental conservation efforts
- Offering affordable financing for sustainable transportation options
- Ensuring diverse and inclusive leadership and board representation
4. Provide accessible and engaging financial education resources
Gen Zers are highly interested in learning more about investing and saving, with four out of ten taking a financial education course. Credit unions should offer interactive and innovative education programs to better connect with this demographic.
This can include:
- Hosting workshops on budgeting, investing, and credit management
- Offering one-on-one financial coaching sessions
- Creating educational content on social media platforms
Partnering with financial education platforms can also help. Financial education organizations have the expertise to elevate your institution’s approach to financial literacy, giving your institution new ways to connect with your members. By offering fun and rewarding financial education opportunities, you can provide members with the skills and knowledge they need to make informed financial decisions.
5. Leverage social media platforms to connect with and educate Gen Z members
The average Gen Zer spends four hours a day on social media. When trying to target this demographic, meet them where they already are.
Here are some platform-specific tips to educate and connect with Gen Z members on social media.
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- Utilize Instagram Stories to share bite-sized financial tips and behind-the-scenes content.
- Create visually appealing posts, such as infographics and carousel posts, to grab Gen Z’s attention.
TikTok
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- Participate in TikTok challenges or trends related to finance or education.
- Utilize TikTok’s duet feature to collaborate with influencers or users on financial topics.
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- Share bite-sized financial tips, news updates, or resources in tweet format.
- Use polls or Q&A sessions to gather feedback and insights from followers.
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- Share thought leadership content, industry insights, or success stories related to financial literacy.
- Connect with Gen Z users by sharing career advice, internship opportunities, or networking tips.
6. Offer rewards programs that align with Gen Z’s values and interests
Offering rewards programs that align with Gen Z’s values and interests can be a powerful strategy for credit unions to attract and retain this demographic. Suggestions include:
- Cashback incentives for sustainable purchases
- Donations to charitable causes chosen by members
- Exclusive access to events or experiences
- Personalized rewards based on spending habits or interests
Authenticity and transparency make these programs work without seeming gimmicky or insincere. Additionally, continuously gathering feedback will help you tailor reward offerings based on changing preferences.
Take a Calculated Approach to Win Gen Z
Connecting with Gen Z may be the key to your credit union’s future success. Whether you offer seamless digital experiences, personalized services, or socially responsible initiatives, you can capture the loyalty of this growing demographic.
Gen Z members love Zogo’s innovative financial education platform. Partner with Zogo for a dynamic financial education solution that meets Gen Z’s needs. Sign up for a free demo!
