Why Gen Z Isn’t Joining Your Credit Union (And How to Fix That)

Key points

• Gen Z values convenience, personalization, and purpose, yet only 6% of UK adults aged 18–34 are members of credit unions.

• Major barriers for Gen Z in joining credit unions include outdated digital experiences, lack of visibility, and misconceptions about credit unions.

• Credit unions can attract younger members by modernizing their digital experiences, leading with immediate value, and enhancing communication.

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Gen Z is shaping the future of finance. They’re digital natives who value convenience, personalisation, and purpose in the organisations they choose to engage with. Yet many credit unions are struggling to attract them. If this generation is not joining your credit union, it’s not because they reject your values. It’s because they don’t see you as relevant to their world.

What You’ll Learn

• The reasons Gen Z is overlooking credit unions

• The gaps in engagement that hold you back

• How to align with what younger members want

• Practical steps to modernise your approach and grow membership

The Engagement Crisis with Gen Z

Gen Z and younger Millennials are redefining what it means to be a member. They are digital first, values driven, and highly selective about where they put their trust.

Gen Z is now entering the workforce in large numbers. They’re financially active, open to community-focused organisations, and looking for providers that align with their values. But research shows they are not choosing credit unions in significant numbers.

According to Fair4All Finance (2024), only 6% of UK adults aged 18–34 are members of a credit union. For many credit unions, the challenge isn’t a lack of values but a lack of visibility and modern delivery. Gen Z expects seamless experiences. If they don’t see that, they quickly move to providers who offer it.

Why They’re Not Joining: The Core Barriers

1. Outdated Digital Experiences

Gen Z expects everything to be mobile first, from account setup to benefit access. Slow onboarding, clunky portals, and limited app functionality push them towards fintech competitors.

2. Lack of Visibility

If your credit union isn’t present in the online spaces where younger people spend their time, you’re invisible to them. Traditional marketing is not enough to reach this audience.

3. The Engagement Gap Beyond Financial Products

Gen Z wants more than savings accounts and loan rates. They expect everyday value that fits their lifestyle. Expanding your offer with relevant perks helps build stronger connections and stand out from digital-first alternatives.

4. Misunderstood and Overlooked

Many younger people don’t realise they’re eligible to join a credit union, or understand what makes one different. Misconceptions around outdated technology, limited services, or lack of relevance often get in the way. Without digital-first onboarding, strong visibility, and a clear value proposition, your offering can be dismissed before it’s even explored.

What Gen Z Wants From You

• Instant access and convenience – streamlined onboarding and mobile-first tools

• Personalised value – benefits tailored to their life stage and priorities

• Meaningful connections – organisations that stand for something and support their wellbeing

• Ongoing engagement – regular touchpoints that make them feel valued beyond the sign-up phase

How to Fix the Gap and Win Younger Members

Here’s what you can do today to make your credit union stand out to Gen Z:

1. Modernise Your Digital Experience

Invest in user-friendly platforms and mobile-first solutions. Provide instant access to accounts, benefits, and support.

2. Lead with Value From Day One

Show new members the value of joining immediately. Highlight savings tools, benefit platforms, and everyday perks that they can use right away.

3. Speak Their Language

Frame communications around their challenges, like cost of living, financial independence, and wellbeing. Make your messaging relatable.

4. Educate and Empower

Use digital content to clear up misconceptions and highlight why credit unions align with their values. Short videos, social posts, and interactive tools work well.

Why This Is Urgent

Fintech companies and digital banks are already winning this generation’s attention with sleek, personalised experiences. Credit unions have an edge that these competitors lack: trust, community, and member ownership. The opportunity is there, but only for those willing to evolve.

Final Thoughts

Gen Z is not out of reach. They are waiting for credit unions to meet them where they are: online, mobile, and seeking value that fits their lives. By modernising your approach and focusing on personalised engagement, you can transform this challenge into an opportunity for growth.

Ready to Engage the Next Generation?

At Parliament Hill, we help credit unions deliver mobile-first, benefit-led experiences that members actually use and value.

Book a free demo to see how we can help you attract and retain younger members while staying true to your mission.

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.