In 2026 and beyond, your most strategic growth lever isn’t a product. It’s a person.
Specifically, a younger one.
For decades, credit unions have been fueled by loyal, long-tenured members - many of them Baby Boomers. But as this population ages, the need to attract and retain younger members is no longer a marketing goal. It’s an existential one.
The Demographic Crossroads
The average credit union today is facing an uncomfortable truth:
A high concentration of deposits is held by aging members. According to the Fed, Baby Boomers control over 50% of U.S. household wealth. In many CUs, 80% of deposits sit with just 20% of members, and those members are often in their 60s or 70s.
These members borrow less. Credit union profitability depends heavily on interest income from consumer lending, but older members typically don’t need new car loans, personal credit, or student lending.
They also spend less. With fewer everyday purchases, credit and debit card swipe volume drops, which directly lowers interchange income; a key non-interest revenue stream.
As deposits age out and exit the institution, access to low-cost loan funding diminishes, forcing credit unions to turn to more expensive alternatives (like borrowing from the FHLB) to keep their lending programs afloat.
That leaves a vulnerability. As these members age, their deposits will be withdrawn, whether to pay for long-term care, or transferred to beneficiaries who often leave the credit union altogether.
Why Younger Members Matter
Gen Z and Millennials represent the future revenue engine of the credit union:
They are more active borrowers; buying cars, consolidating credit, financing large expenses
They are higher frequency spenders, generating more interchange
They are tech-native and open to forming new financial relationships, if the experience aligns with their expectations
Yet many credit unions struggle to reach them, not because they don’t offer the right products, but because they don’t deliver them in the right way.
What These Members Want
Younger generations aren’t just looking for mobile apps and fast approvals. They expect:
Digital-first experiences that mirror what they get from Amazon, DoorDash, or Chime
Transparent pricing, instant feedback, and intuitive workflows
Purpose-driven brands with values that reflect inclusivity, environmental responsibility, and member advocacy
Smart personalization that uses their data to offer relevant solutions - not static product pitches
Strategic Questions for 2026 Planning
If your credit union is serious about long-term viability, ask:
What % of our portfolio is concentrated in members 65+?
What are we doing to ensure those assets aren’t withdrawn and lost?
Do our onboarding, lending, and account flows appeal to digital-native members, or do they still assume an in-branch world?
Are we using AI and data to personalize engagement, or still marketing by segment?
What investments will help us serve younger members not just better, but differently?
From Compliance to Connection
You don’t need to compromise your mission to win younger members. In fact, Gen Z and Millennials are deeply values-aligned. They want guidance, transparency, and fairness. They want smart, human-centered technology that makes their financial lives easier.
Modernizing your digital presence through experiences like instant account opening, AI-guided loan fulfillment, and intelligent member communications, does more than improve efficiency. It repositions your institution as a relevant, forward-thinking partner in the financial lives of tomorrow’s member base.
Next Up in the Series:
Deposit growth