Why Credit Unions Must Act Now to Engage Gen Z and Younger Members

Credit unions across the UK are facing a quiet crisis. Their member bases are ageing while Gen Z and younger Millennials, who are digital first, values driven, and increasingly selective, are not engaging with credit unions in meaningful numbers. Without urgent action, the future of the movement could be at risk.

What you'll learn:

• Why younger members are not currently choosing credit unions 

• What Gen Z expects from financial providers 

• The main barriers to youth engagement in the credit union sector 

• Practical steps to attract and retain younger credit union members 

The Member Engagement Gap: Why Credit Unions Are Missing Younger Generations 

While over 1.4 million people in the UK are credit union members, a significant proportion are over the age of 45. At the same time, Gen Z and younger Millennials are actively seeking financial services that reflect their values, provide digital ease, and support their goals. Yet they are not finding those qualities in credit unions. 

According to a 2025 survey by Digital Federal Credit Union, 36 percent of Gen Z respondents did not know what was required to join a credit union, and 25 percent believed they needed perfect credit. After learning more about the benefits, the number likely to consider joining increased from 33% to 55%.

Barriers to Gen Z Credit Union Membership 

Young people are not rejecting the values of credit unions. They simply do not see credit unions as accessible, digital, or relevant. Some key barriers include: 

• Low visibility in online and mobile first spaces 

• Outdated or slow onboarding processes 

• Generic communications that do not speak to their life stage 

• A perception that credit unions are for older or financially secure members 

Why Gen Z Engagement Should Be a Top Priority for Credit Union Leaders 

The competition is moving quickly. Fintech apps, digital banks, and financial influencers are already capturing the attention and trust of younger consumers by offering: 

• Fast and seamless account setup 

• Mobile first user experiences 

• Engaging financial education content 

• Strong branding that aligns with social and personal values 

If credit unions do not act now, they risk being overlooked by a generation that expects both convenience and meaning from their financial providers. 

How Credit Unions Can Attract Younger Members Today 

Here are three practical steps credit unions can take now to strengthen engagement with Gen Z and younger Millennials.

1. Modernise the Member Journey 

Ensure your onboarding, application, and account access processes are intuitive, quick, and mobile friendly. A smooth user experience is essential to meet the expectations of younger members who are used to managing everything online. Adding value at the point of entry, such as access to lifestyle benefits and discounts, can also help make membership feel immediately rewarding. 

Find out more about lifestyle benefits: Why Lifestyle Benefits Are Essential for Members? 8 Reasons

2. Speak Their Language 

Younger members respond to communications that reflect their everyday challenges and aspirations. Instead of focusing solely on financial products, frame your messaging around topics like cost of living, saving for the future, and wellbeing. Offering benefits that support these priorities, such as discounts on essentials or access to health and wellbeing tools, shows that your credit union understands their day-to-day reality. 

Parliament Hill offers a wide range of wellbeing benefits and essential discounts that can be used to enhance your member offer in a way that feels both practical and relevant.

3. Build Meaningful Partnerships 

Partnerships with employers, youth organisations, or professional networks can help you connect with younger audiences in relevant and trusted spaces. For credit unions that offer payroll deduction schemes, combining this convenience with access to ongoing lifestyle savings can reinforce the long-term value of membership. 

See What Younger Member Engagement Can Look Like

Engaging Gen Z and younger Millennials is not about reinventing your values. It is about making those values visible, accessible, and relevant in the lives of a new generation. With the right tools and support, credit unions can build meaningful relationships that last. 

If you would like to see how a tailored benefits and engagement platform can help your credit union attract and retain younger members, we would be happy to show you how it works

Book a free demo to see the Parliament Hill platform in action and explore how it can support your member engagement goals.

About author

Christina Loukissa

Christina Loukissa is the Growth Marketing Lead at Parliament Hill, where she helps membership organisations grow, retain, and energise their communities through targeted perks and benefits strategies.