Gen Z Credit Union Members Consider Leaving
Almost four out of ten members from the 10th generation of the Z Credit Union are contemplating a shift to traditional banks next year. This significant percentage poses a major challenge for credit unions eager to maintain their connection with younger members.
Yet, the trend goes beyond just young consumers pondering their banking choices.
A study titled “The Real Story Behind the Member Churn” conducted by PYMNTS Intelligence in collaboration with Verella, surveyed over 15,700 consumers alongside nearly 2,000 small and medium-sized businesses (SMBs). It aimed to uncover the reasons behind member departures and what credit unions could do to retain their loyalty.
Key Insights from the Study:
- About two-thirds of members indicated a preference for traditional banks over credit unions, largely due to the former’s more advanced digital capabilities, easier accessibility, and a more extensive array of products—areas where credit unions seem to be falling short.
- Former SMB members are 131% more inclined to seek budgeting and card management tools compared to the average member, signaling the need for credit unions to enhance their digital financial management offerings to keep business clients satisfied.
- Both Gen Z and SMB members who previously belonged to credit unions expressed a strong desire for digital onboarding, with interests 78% and 111% higher than average, respectively. Effective digital onboarding isn’t just a bonus anymore; it’s essential for attracting and retaining today’s tech-savvy clientele.
The insights from this report clearly indicate what credit unions must focus on to curb member attrition. The full report provides actionable strategies for engaging and fulfilling the needs of their members.
About the Study
“The Real Story Behind the Member Churn” by PYMNTS Intelligence and Verella is based on a balanced survey of 15,758 consumers conducted from February 28, 2025, to March 31, 2025, and another survey of 1,996 SMBs from February 26, 2025, to March 27, 2025.
