Gen Z & CUs: Engaging the Now Generation

Generation Z (ages 13–28) isn’t the future of banking — they’re the now generation. This article explores what’s shaping Gen Z’s financial lives, busts common myths, and shows how credit unions can win their loyalty with accessible, experience‑first banking.

Let’s talk about Gen Z. They aren’t the future generation — they are the now generation. And now is the time for credit unions to engage this vibrant demographic of 13‑ to 28‑year‑olds.

Three of Allied Solutions’ summer interns were recently interviewed on the Allied Angle podcast, where they shared the “Zoomer” viewpoint on credit challenges, financial hopes, and what credit unions can do to get their attention — and their loyalty.

What’s Shaping the Financial Life of Generation Z?

Social media is their search engine. The rise of “finfluencers” is changing how and where Gen Z learns about money.
Values drive behavior. Ethics, authenticity, inclusivity, and sustainability strongly influence how Gen Z spends and saves.
Credit unions are underrepresented. CUs hold just 4% of Gen Z’s market share, while 80% bank with a non‑credit union (fintech or bank).
Early in their financial journey. Half of Gen Z is financially inexperienced; the other half is just beginning to build their financial lives.

Fact, Fiction, or Friction: Generation Z Edition

Generation Z has poor credit capacity. Fact. The youngest Gen Zers aren’t old enough to build credit. Older Gen Zers are hitting major life milestones — launching careers, buying homes, getting married, starting families — but shorter credit histories and heavier debt loads often place them in the subprime category. Those building credit are doing so slowly, while younger members of the cohort are still firmly in the “figuring life out” phase.

Generation Z is entitled. Fiction. Their strong values sometimes earn them the misconception of being entitled or overprivileged. In reality, 7 in 10 Gen Zers live paycheck to paycheck. They’ve come of age during pandemic recovery and a period of high inflation, without the financial head start that benefited older generations. They’re not entitled — they just haven’t had the same time or opportunity to build credit and buying power.

Generation Z is addicted to their phones. Friction. As a digitally native generation, Gen Z spends an average of 9 hours per day on screens, interacting with dozens of apps. They readily admit they’re glued to their devices. The friction? They want breaks from digital life. Many crave brands that cut through the online noise, not with more ads, but with physical mail, flyers, and in‑person experiences. Physical marketing has surprising value for the digitally fatigued.

Generation Z isn’t loyal. Fiction. Gen Z is ambitious and empathetic, but they aren’t brand purists like Boomers or Millennials. They’ve grown up in the fraud era, making them more skeptical. They may lack deep financial roots, but they have breadth — interacting with dozens of financial brands daily. This isn’t disloyalty; it’s the result of abundant choice and the skill to customize their own banking ecosystems. For Gen Z, loyalty is earned through experiences, not brand names.

What Gen Z Needs to Thrive

Cancel culture is real for this generation, yet they also live in tension between their values (like sustainability) and their access (like affordability). They have a loud voice now, and in 3–5 years, their buying power will match it.

Cashless payment options
Buy Now, Pay Later flexibility
Short‑term loans
Student loan refinancing
Savings accounts for life milestones
Personal finance management tools

The Bottom Line

Generation Z is coming of age in a highly inflated market. More than being understood, they need autonomous, affordable, and accessible banking. Credit unions are uniquely positioned to meet those needs — helping Gen Z grow in financial confidence.