A recent PYMNTS Intelligence report suggests that the biggest opening for credit unions with Gen Z may not be basic digital access, but the chance to become a trusted guide for a generation that is comfortable mixing providers, testing new tools and seeking advice from many directions.
The Credit Union Tracker Series, “Digital-First Retention Playbook: Winning Gen Z Loyalty at Credit Unions,” a PYMNTS Intelligence and Velera collaboration, finds younger consumers remain a high-value but high-risk group for credit unions.
The report says Gen Z members are more likely than older consumers to consider leaving, expect personalized and relevant service, and increasingly use AI tools as part of their financial lives.
At the same time, the findings point to a useful advantage for credit unions: this generation still values human advice, authenticity and institutions that appear to understand them.
That may be the most encouraging part of the report. Much of the discussion around Gen Z banking tends to focus on the threat from digital-only rivals. This research points somewhere more practical. Young consumers are willing to move. They are also willing to engage.
For credit unions, that creates room to compete if they can combine better digital tools with clearer advice and a more connected member experience across channels. That is a workable assignment.
- 36% of Generation Z credit union members say they are likely to consider leaving their credit union, compared with 14%of consumers across all age groups, according to the PYMNTS Intelligence Credit Union Innovation Readiness index cited in the report.
- 72% of Gen Z consumers say they face hurdles that other age groups do not, a sign that this cohort is looking for tools that make everyday money decisions easier and more manageable.
- 62% of Gen Z consumers are open to using AI for “what if” financial planning, while 46% prefer in-person engagement when seeking financial advice, showing that digital fluency and human guidance are both part of the same relationship.
The third finding stands out because it broadens the usual discussion. Gen Z is not simply asking credit unions for a better app. This group is building its own financial playbook, using chatbots, social platforms, family input and financial institutions at the same time. The report says younger consumers are comfortable curating a mix of products and services, and that they respond to messaging that feels authentic and relevant to their lives.
Credit unions may have a real opening here, since Gen Z rates them relatively well on understanding them and on being technologically advanced. If those institutions can sharpen personalization, improve cross-channel consistency and show up in places where younger members already spend time, loyalty can still be won. That is the upside.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.