Published by PYMNTS – December 2024

01

CUs are seeing their average membership grow older as younger consumers gravitate toward banks and FinTechs instead.

02

Younger consumers prioritize digital-first and self-service banking, so credit unions will need to match these services with their competitors’. However, digital natives are also uniquely willing to switch FIs for personalization — an area where CUs excel.

03

CUs are kicking their innovation agendas into overdrive with new digital banking technologies to attract younger members.

Despite their strong reputation for service, credit unions (CUs) may face frustration in overcoming certain other public perceptions. As we saw in the previous edition, one of these is the notion that CUs are less innovative than their bank or FinTech peers — an image that is rapidly growing obsolete as CUs make digital strides. Relatedly, younger consumers may not be getting a consistent message about how well CUs can serve their needs. According to research, the average CU member is in their mid-50s, and less than 20% of Americans under the age of 40 use a credit union. This aging membership base underscores the need for CUs to engage with younger demographics for long-term sustainability.

Attracting these younger members presents challenges and opportunities. Larger banks and FinTechs are already making inroads with this segment, so CUs will have to be agile competitors. This will mean pulling out all the stops when it comes to the modern, digital banking experiences that younger consumers expect. However, CUs already possess unique strengths for serving this demographic, including a personalized, member-centric approach. Captivating and engaging younger consumers will require CUs to increase public awareness of the singular benefits of CU membership for digital natives.