CU Employee CULytics Founder

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Introduction

In the rapidly evolving financial landscape, credit unions face the challenge of staying relevant and appealing to younger generations. Recognizing this, a recent survey was conducted among credit union leaders, focusing on strategies for acquiring and retaining Millennials and Gen Z members. Here, we explore the key findings from this survey and discuss how credit unions are positioning themselves for the future.

The Critical Role of Attracting Young Members

An overwhelming majority of the survey respondents (80%) believe that attracting and retaining Millennial and Gen Z members is "Extremely Important" to their strategy, with another 20% finding it "Very Important". This consensus highlights the urgent need for credit unions to adapt and innovate to meet the expectations of younger generations.

Current Membership Trends

The survey revealed varied success in engaging these younger demographics:

  • 40% of credit unions reported that 51% to 75% of their new members over the past year were Millennials or Gen Z.
  • 20% each accounted for the brackets of 10% to 25%, 26% to 50%, and those unsure of the exact figures.

This spread suggests a diverse level of engagement across different credit unions, indicating that while some are making significant inroads, others are still in the early stages of understanding and attracting these age groups.

Confidence in Serving Millennials and Gen Z

While no credit union leaders expressed "Very Confident" in their ability to meet the financial needs of Millennials and Gen Z over the next five years, a majority (60%) were "Somewhat Confident", and 40% remained "Neutral". These findings underscore the ongoing uncertainty and the challenges credit unions face in fully grasping the unique needs of younger customers.

Challenges in Engagement

The survey pinpointed several key challenges credit unions face in engaging Millennials and Gen Z:

  • 100% of respondents cited "Creating a seamless digital experience" and "Competing with fintechs" as major challenges.
  • 60% struggled with "Building loyalty and engagement".
  • 40% found "Effective marketing strategies" crucial.
  • 20% were concerned with "Understanding their financial behaviors".

These challenges reflect the broader issues within the financial services sector, where digital innovation and personalized services are becoming critical competitive factors.

Effective Digital Tools

In terms of digital tools, respondents highlighted:

  • Social media platforms like Instagram and TikTok (60%) and other unspecified tools (60%) as most effective in reaching younger members.
  • Both mobile and online banking platforms were also considered effective by 20% of the respondents.

This indicates a shift towards more engaging, interactive platforms that resonate well with the digital-first habits of younger generations.

Conclusion

The insights from the survey underscore the necessity for credit unions to evolve rapidly to cater to the expectations and behaviors of Millennials and Gen Z. As these generations increasingly dominate the consumer landscape, credit unions must invest in technology, refine their marketing strategies, and create more personalized, engaging customer experiences to remain competitive and relevant in the years to come.

This blog aims to foster a rich discussion among credit union leaders and stakeholders at the upcoming roundtable on September 27th, where these strategies will be further explored and refined.

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