How credit unions can diversify their customer base

The trend: Credit unions face a demographic challenge: Their average customer age is 53, and baby boomers now account for 39% of their members—an 11-point increase since 2015, per PYMNTS.

How we got here: Many younger consumers default to the FIs used by their parents. Even if they were to consider a different provider, credit unions would likely not make the cut:

• 30% of Gen Zers and 21% of millennials are unaware of credit unions as an option, per an Apiture study. 
• Young consumers gravitate toward FIs with superior digital experiences—but credit unions' experiences often fail to meet members’ expectations, per CUTimes.
• Gen Zers are four times more likely than baby boomers to cite high rates and restrictive credit options as their reasons for banking elsewhere, according to PYMNTS.

What credit unions are doing next: 76% of credit unions planned to increase their tech budgets in 2024, per Cornerstone Advisors. This investment is crucial for digital innovation—including through partnerships with fintechs—enabling better digital tools and enhanced security. 

• Security is a top factor when choosing an FI for the majority of Gen Z and millennials, per PYMNTS.
• Credit unions can find the most in-demand digital features, including for security, in our “US Mobile Banking Emerging Features Benchmark 2024. 

But increasing budgets alone won’t reverse this trend. Credit unions must engage younger consumers through marketing campaigns, such as with a finfluencer partnership, or by starting a student-run credit union in a local school.

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