5 ways to capture Gen Z’s attention in 2025
Engaging Gen Z is critical for the future success of credit unions. This generation is in the workforce, building financial habits, and deciding which institutions to trust. According to HubSpot, Gen Z is expected to comprise 40% of all consumers by 2030 and holds an annual spending power of over $450 billion in the U.S. alone. This highlights the importance of credit unions connecting strategically with this demographic.
Here are 5 ways for credit unions to engage with Gen Z in 2025:
1. Hyper-personalization
Gen Z has grown accustomed to personalized experiences, whether it's their Netflix recommendations, Spotify playlists, or morning coffee orders. A study by Salesforce found that 70% of Gen Z expect companies to anticipate their needs and 54% expect offers to always be personalized.
To elevate personalization, credit unions can utilize tools that support data-driven marketing strategies. This enables hyper-targeted campaigns that resonate with specific customer segments, creating a more tailored experience.
2. Short-form video content
Gen Z consumes more short-form video content than any other generation. HubSpot research found that 85% of Gen Z prefers to learn through video, from platforms like TikTok, Instagram Reels, and YouTube Shorts. Credit unions should leverage this by producing educational, engaging short-form videos that simplify complex financial topics.
For example, Chime effectively uses TikTok to share fun and digestible content about savings and budgeting. This enhances their brand awareness and trust with this key demographic. Credit unions that provide financial literacy in an entertaining, accessible manner through video will resonate more with Gen Z than those still relying on long-form articles or emails. Indeed, companies leveraging video have been shown to grow revenue 49% faster than those that don’t.
3. Seamless mobile experiences
Having grown up with smartphones, Gen Z expects seamless mobile experiences from every brand they interact with. ABA research shows that 57% of Gen Z prefers using mobile banking apps over visiting branches, calling, or mailing communications.
In 2025, credit unions need to go beyond basic mobile banking services. Features like AI-driven budgeting tools, peer-to-peer payment options, and instant customer service via chatbots will be crucial to keeping Gen Z engaged. For instance, Alliant Credit Union has developed a mobile app that includes features such as mobile check deposits, customizable budgeting tools, and real-time transaction alerts. The app also allows members to set savings goals and track their progress, making it easier for Gen Z users to manage their finances effectively.
4. Tailored credit card options
Gen Z is increasingly interested in credit cards as they seek ways to establish their credit history and improve their understanding of financial products. However, research by Investopedia indicates that only 46% of Gen Z feel confident in their financial literacy. Secured credit cards offer an excellent entry point for this demographic since they reduce risk for financial institutions while providing a safe way for Gen Z to learn responsible credit usage.
And according to TransUnion, 47% of Gen Z plan to apply for a credit card in the next year, making it an ideal time to promote secured card offerings. By providing secured credit cards with features like no annual fees and the potential to transition to unsecured cards after demonstrating responsible use, financial institutions can help Gen Z build their credit while minimizing risk. Additionally, offering educational resources alongside these products empowers Gen Z to make informed financial decisions, laying a solid foundation for a strong credit history.
5. Brand matters
Investing in your brand is a vital strategy for attracting a generation that prioritizes social and environmental causes. Credit unions must reflect these values and present themselves as relevant and appealing choices for younger audiences.
Over one-third of financial institutions have rebranded since 2020 to better resonate with younger consumers. This trend reflects a broader shift in the industry, emphasizing the need for brands to evolve continuously. A great example of successful rebranding is Trailhead Credit Union, which grew its Gen Z membership by an impressive 63% through strategic changes to its brand identity. Their approach illustrates the power of a fresh and authentic image that aligns with the values of younger consumers. As financial institutions refresh their messaging and visual identity, they position themselves as not just banks but as partners in the financial journeys of Gen Z.
As you plan for 2025, engaging with Gen Z should be central to your marketing strategy. This generation’s expectations are shaped by their digital experiences, desire for personalization, and commitment to social causes—the brand and user experience you create should be as well.
This article was originally published in CUInsight.