Velera Says Digital Tools and Personalization Key to Reaching Gen Z

Credit unions should focus on digital tools, personalization and authentic storytelling to appeal to members of the increasingly influential Generation Z, credit union service organization (CUSO) Velera said in a Tuesday (Sept. 2) press release.

Compared to members of other generations, Gen Z consumers are especially interested in omnichannel engagement that lets them shift between online and in-person transactions, more likely to explore alternatives if a financial institution does not meet their expectations, and increasingly likely to seek tech-driven personalized guidance from artificial intelligence and relatable financial advice from digital platforms, the release said, citing findings from the Velera and Mastercard study “CU Growth Outlook.”

“Gen Z is poised to become the largest and wealthiest generation in history, and their expectations will fundamentally redefine financial services,” Velera Chief Marketing and Communications Officer Tom Pierce said in the release.

Pierce added that credit unions have an opportunity to build on their core strengths like trust, service and community by adding new capabilities to “meet Gen Z where they are.”

The PYMNTS Intelligence and Velera collaboration “The 2025 Credit Union Innovation Readiness Index: Closing Gaps, Winning Members,” which was released in June, found that Gen Z consumers are 78% more likely than the average consumer to want digital onboarding.

The report also found that Gen Z consumers are 72% more likely to value open banking, a finding that signals the technology’s importance for attracting younger demographics to credit unions.

Another PYMNTS Intelligence and Velera collaboration, “How Credit Union Innovation Can Drive Gen Z Engagement,” found that the share of Gen Z credit union members who want their credit union to innovate on Zelle — 25% — is twice that of the average member.

When it comes to reaching Gen Z consumers, credit unions have the advantages of personalization and a receptive audience that will help deepen their digital relationships, Jeremiah Lotz, senior vice president, product and data experience at Velera, told PYMNTS in an interview posted in September 2024.

If credit unions are able to serve the needs of their various markets quickly and intuitively, “that’s how you’re going to capture the long-term digital users,” Lotz said.

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