Gen Z should be the credit union generation
How can we learn from our mistakes with millennials?
Cast your mind back to not too long ago, when every credit union marketing campaign, research program and member segmentation initiative seemed to be built with the millennial in mind.
A seemingly endless slew of wily youngsters was entering the workforce, and CUs were primed to capitalize on the opportunity … or so we thought.
The reality was that millennials matured when fintech disruption was burgeoning, driving traditional banks to invest heavily in digital services. Some credit unions—certainly the highly capitalized—kept pace, but most of the system is (or at least was) traditionally cautious about innovation. The market demanded convenience, CUs prioritized service, and the flashy apps and digital shopfronts won out.
“You know, there’s a saying: Man plans, and God laughs,” said David Metz, CEO of Prizeout.
“One of the great things about credit unions is they don’t typically engage in anything risky; they don’t have investment banking. People value that sense of security, but there are also downsides.
“Credit unions are realizing now that digital services are not a nice-to-have but a have-to-have. We’re seeing a much more aggressive approach to tech investments and partnering with fintech, ... and it’s putting the entire credit union ecosystem into a more competitive space.”
A Missed Opportunity
In all, the opportunity to capitalize on millennials—and truly position the credit union system as their primary partner for a lifelong—may go down as a missed one.
An early 2022 GoBankingRates study shows only 14% of millennials are members of a CU. A June 2023 PYMNTS study finds that just 5% of millennials are credit union members.
Of course, there’s still significant opportunity. Even the oldest millennial is barely into their 40s, but credit unions do need to learn from past mistakes, and quickly.
This article was written by Mission Brands Founder/CEO, Sam Plester for CUES. Visit CUManagement.com to read the full article.