Credit Unions Bet on 5 Digital Plays to Win the Next Generation
Keeping Generation Z engaged is more than a marketing imperative; for credit unions, it’s fast becoming a survival strategy.
Gen Z’s digital-first expectations and readiness to adopt new technologies are forcing credit unions to rethink the basics and focus innovation where it matters most for growth, business adoption and loyalty over a lifetime.
Forward-thinking credit unions that prioritize innovation, especially the rollout of high-impact digital products and features, tend to secure stronger ties with young members while boosting business memberships.
Joint research from PYMNTS Intelligence and Velera exploring Credit Union Innovation Readiness shows that top-performing credit unions don’t just keep up with trends; they set them by embracing products that Gen Z wants and small- to medium-sized businesses (SMBs) need. This forward momentum translates into better member retention, deeper loyalty and robust growth.
Five Products That Set Credit Unions Apart for Gen Z
Contactless Credit and Debit Cards: Ninety percent of top-performing credit unions offer or plan to offer contactless cards compared to less than half of middle performers, addressing Gen Z’s 16% higher interest in tap-and-go transactions.
Mobile Wallets: Gen Z is 33% more likely than other consumers to want mobile wallets. Top credit unions are ahead, with 90% including mobile wallets in their product portfolios, boosting convenience and digital engagement.
QR Code Capabilities: With Gen Zers being 62% more likely to seek QR-based payments, top-performing credit unions outpace others by a 15-point margin in deploying this feature, capturing tech-savvy users looking for versatility at checkout.
Mobile Credit Card Apps: The leading institutions are 20 percentage points ahead of middle performers in providing mobile credit card apps. Mobile channels are vital for Gen Z’s preference for on-the-go account management and spending insights.
Small Business Credit and Payroll Solutions: Ex-credit union SMBs are 117% more likely to be interested in small business credit and 173% more likely to desire payroll products than the average. These offerings can win back lost business members and appeal to Gen Z entrepreneurs.
Credit unions that pursue digital capabilities and address gaps in mobile, contactless and business solutions position themselves at the front of the Gen Z adoption curve. These five product categories are not just catch-up plays. They’re essential for attracting young segments and sustaining business relevance into the next generation.
Top-performing credit unions understand that attracting Gen Z and new businesses means focusing on the digital features most in demand. Those who innovate with speed and strategic partnerships aren’t just future-proofing their institutions; they’re redefining what it means to belong to a credit union now and in the future.
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