BOSTON–Engaging with Generation Z is more than a marketing imperative, its “fast becoming a survival strategy” for credit unions, according to a new report that says there are five products that can help set CUs apart.
“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,” said PYMNTS Intelligence.
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, the organizations said.
“This forward momentum translates into better member retention, deeper loyalty and robust growth,” PYMENTS said in releasing its findings.
Five Differentiating Products
According to PYMNTS Intelligence and Velera, there are five products that can set credit unions apart with Generation Z. Those five products are:
- 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,” the organizations said.
- 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.”
‘Positioned in Front’
“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,” PYMNTS said. “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,” the company continued. “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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