ST. PETERSBURG, Fla.– The fifth annual CU Growth Outlook has been released by Velera and reveals new insights into how Generation Z – “the first fully digital-native generation” – is “accelerating profound shifts in consumer behavior and financial services expectations,” according to the company.
Velera said it found that Gen Z – those born between 1997 and 2012 – feels “uniquely challenged by today’s economy, with 72% reporting they face hurdles other generations did not.” According to the new CU Growth Outlook, this generation “prioritizes financial independence, consistency in paying bills and building emergency savings, while demanding a seamless blend of digital and in-person experiences.”
A Redefining of Financial Services
“Gen Z is poised to become the largest and wealthiest generation in history, and their expectations will fundamentally redefine financial services. With this in mind, Velera is aiming to arm credit unions with the knowledge they need to address these rapidly shifting expectations,” Velera Chief Marketing & Communications Officer Tom Pierce said in a statement. “The 2025 CU Growth Outlook reveals a pivotal opportunity for credit unions to build on their core strengths – trust, service and community – while evolving to meet Gen Z where they are. This means embracing digital fluency, reimagining personalization and delivering authentic engagement and immediacy in ways that resonate with this generation’s values and behaviors.”
The Key Findings
According to Velera, key findings in the new report include:
- Digital is the Default: “Consumers across generations expect modern, mobile-first experiences. Gen Z, in particular, values omnichannel engagement, shifting easily between online and in-person interactions.”
- Trust is Evolving: “While credit unions remain the most trusted financial institutions, younger consumers increasingly view financial relationships as transactional – places to compare products and rates – and are quick to explore alternatives if expectations are not met.”
- AI Adoption is Mainstreaming: “With 62% of Gen Z respondents open to using AI for financial “what if” planning, tech-driven personalized guidance is quickly becoming baseline expectation,” Velera said.
- Authenticity Drives Engagement: “Gen Z increasingly turns to digital platforms like TikTok, YouTube and Instagram for financial advice, favoring relatable, empathetic voices over product-driven messaging.”
Recommendations Shared
According to Velera, the new research underscores that “while credit unions’ traditional differentiators – service, community and trust – remain valued, they must be paired with modern digital tools, personalized journeys, immediacy and authentic storytelling to sustain growth and relevancy.”
The study also includes recommendations and considerations for credit unions as they look to address this generation, the company said.
About the Study
Velera said the CU Growth Outlook was conducted in partnership with Mastercard and surveyed 1,500 U.S. financial consumers age 18 and above, with a boost among Gen Z respondents (ages 18 to 27), as well as an even distribution of male and female respondents. The study also included qualitative digital interviews and diaries with 16 consumers across generations to capture deeper insights into motivations, barriers and opportunities for credit unions.
To download the 2025 CU Growth Outlook white paper, go here.
