How to engage and win millennials and Gen Z

Many Gen Z and millennial members have yet to select a primary financial institution. As a result, credit unions have an enormous opportunity to attract and secure these young adult members.

In an ever-changing economy, credit cards are a key tool for credit unions to connect with the younger generations as they grow into the life they desire.

Millennials (born between 1981 and 1996) and Gen Z (born between 1997 and 2012) hold an average of two credit cards, and their allegiance to card products is likely to shift based on opportunity and financial need. These cohorts are using credit cards as a tool in their efforts to combat challenges such as housing costs, day-to-day expenses, and consequences of the pandemic.

• In the second quarter of 2022, credit card balances for younger people increased by 30%.
• More than 40% of Gen Z and millennials plan to apply for new credit or refinance existing credit within the next year.
• 42% of millennials would move their accounts to a different financial intuition that is more engaged with charitable giving, triple the rate of baby boomers.

Competitive reward products are not necessarily the deciding factor for Gen Z and millennials. They prize digital experience and an organization’s values and community involvement higher than other generations. So much that many leave financial institutions because of misaligned social values or disappointing experiences.

Gen Z and millennials are also particularly interested in obtaining automated financial guidance or engage with a virtual assistant to help manage their finances. For example, 57% of millennials indicated that they want to improve their credit score. They want a high-touch, personalized experience that delivers financial education on affordability (especially with home-buying), long-term savings plans, and repayment modeling to help them better understand the implications of purchasing decisions.

Connecting effectively with these cohorts, and winning their loyalty, involves a multi-layer approach including:

• Presenting a brand that authentically mirrors their social values
• Offering a combination of high-touch and low-touch experiences
• Integrating real-time and personalized services

Gen Z and millennial members are looking for reasons to reward a credit union with loyalty through competitive services, targeted incentives, and a demonstrable commitment to causes they care about.

By partnering with Elan Credit Card, you obtain access to our expertise, tools, and resources with a partner committed to your members and the community. A partnership with Elan will minimize your risks and maximize your ability to build long-term relationships.

Sources available in full whitepaper.