From Products to Purpose: Reaching the Next Generation of Members

​What drives Gen Z's financial decisions? Explore how this generation views money, trust, and financial institutions, and why credit unions have a unique opportunity to earn their business.

​By Nahar Abboud, Corporate Communications Intern, Velera

A few weeks ago, I was talking with a friend when my paycheck hit my account. "A day early?" he asked.

I smiled — one of the perks of banking with my credit union. He asked who I banked with, and I told him the name of a local credit union. "A what?" His response surprised me. He had never even heard of a credit union.

I pulled out my phone and showed him the app. Naturally, he was able to see how easy it was to use, some of the features I rely on and, of course, one of my favorites: getting paid a day early. We talked for a few minutes about how credit unions work, how they're different from traditional banks and why I've stayed with mine for years.

The next week, he came back and told me he joined a credit union.

A few weeks later, I joined Velera’s summer internship program. Throughout the summer, that conversation with my friend stayed in the back of my mind. It made me wonder how many others my age were in the same position of not avoiding credit unions because they weren't interested, but simply unaware of their existence. What actually motivates Gen Z to choose a financial institution? And more importantly, what would make them choose a credit union? 

To find out, I surveyed fellow Velera interns, all members of Gen Z. One theme emerged almost immediately: Gen Z isn't thinking about finances in terms of products. We're thinking about life goals and expecting financial services to support them.

What Gen Z Really Wants From Financial Institutions
When asked about their biggest financial priorities, nearly two-thirds of our intern respondents said building savings was important, while more than half selected building credit and creating an emergency fund. Saving for travel also ranked highly. As we enter adulthood amid rising costs and economic uncertainty, financial education matters — but only if it's delivered in a way that's easy to consume and relevant to our everyday lives.

That pattern continued when respondents were asked what would actually make them stop scrolling on social media: 26% chose short, TikTok-style explainers, while 22% preferred goal-based content like saving for a first apartment or paying off a car. Visuals were also important, with 18% saying they wanted infographics.

When asked what communication style feels most trustworthy coming from financial institutions, 25% chose educational content, while 24% selected both expert-led and clear, simple messaging. Casual content appealed to just over 15% of respondents, while very few associated a humorous tone with trust.

In other words, Gen Z doesn't necessarily want financial institutions to sound like influencers. They want them to sound knowledgeable, approachable and easy to understand.

Nearly 53% of respondents said financial communication is sometimes too full of jargon, while another 24% said it's often too complicated and 18% said it's always confusing. As someone who's studied communications, I don't think the problem is that financial concepts are inherently too complex. I think we sometimes make them sound more complicated than they need to be.

Awareness Isn't the Problem. Action Is.
One finding surprised me. Going into the survey, I expected unfamiliarity with credit unions to be the biggest barrier. After all, that's exactly what I had experienced with my friend. However, only 5% of respondents said they had never heard of a credit union, and another 5% said they didn't know how credit unions differ from traditional banks. The barrier wasn't awareness; it was inertia. Half of respondents said they simply continued banking with the first financial institution where they opened an account. Products may capture someone's attention, but guidance is what builds long-term relationships.

The Industry Shift Toward Personalization
As I continued researching, I realized my survey reflected a broader industry trend. Younger consumers expect their banking experience to match the convenience and simplicity of other apps. Younger consumers also increasingly expect personalized experiences and are comfortable sharing information if it leads to more relevant recommendations. Personalization isn't just about recommending the right product, it’s about understanding where someone is in life and helping them achieve their goals through relevant guidance and digital tools.

Gen Z wants digital tools that support financial goals, from building credit to managing spending, while strengthening loyalty to their financial institution.

Industry examples reflect this shift. Cash App's "Cash In" campaign focuses on relatable financial moments rather than product features, showing how its services fit into everyday life. Likewise, SoFi's found that consumers increasingly value financial experiences that are easy to understand and free from surprises.

Meeting Gen Z Where They Already Are
Many financial institutions are blending education and engagement through videos and social media content on topics like fraud prevention and financial wellness. While the survey suggests this approach is effective, it also highlights an opportunity to go further.

Gen Z is not only looking for bite-sized, engaging content. We also want information that helps us make real financial decisions with confidence. While many organizations have increased their focus on financial education, much of that content still centers on promoting products. Survey responses suggest that leading with relatable life experiences and financial challenges, then introducing products as part of the solution, is far more likely to build meaningful connections.

Credit unions don't need to chase trends to connect with younger members. Instead, they should position themselves as trusted guides. That means leading with milestones. Products become more meaningful when they're presented as tools that help members achieve goals they already care about.

Throughout my internship, I've realized that Velera's role goes beyond providing technology and financial solutions. It also helps credit unions better understand the next generation of members. If credit unions can pair the right digital tools with communication that feels personal, educational and relevant, they'll be in a much stronger position to build relationships that last for decades. 

Looking back, my friend didn't switch because I gave him a sales pitch. He switched because I showed him how a financial institution fit into my life.
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If credit unions want to connect with Gen Z, don’t start with the product. Start with the person, the goals they're working toward and the role financial services can play in helping them get there.
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About Velera
Velera, formerly PSCU/Co-op Solutions, is the nation’s premier payments credit union service organization (CUSO) and an integrated financial technology solutions provider. With over four decades of industry experience and a commitment to service excellence and innovation, the company serves more than 4,000 financial institutions throughout North America, operating with velocity to help its clients keep pace with the rapid momentum of change and fuel growth in the new era of financial services. Velera leverages its expertise and resources on behalf of credit unions and their members, offering an end-to-end product portfolio that includes payment processing, fraud and risk management, data and analytics, digital banking, instant payments, strategic consulting, collections, ATM and POS networks, shared branching and 24/7/365 member support via its contact centers. For more information, visit velera.com.