Crissi Cole is the CEO and founder of Penny Finance, an online financial planning platform for women and the digital generation.
When I say, “the digital generation,” what comes to mind? If you’re thinking Gen Z, you’re right—and you’re also wrong! The digital generation represents a broader group: It covers those in their mid-20s to mid-40s who manage the most significant aspects of their lives within the digital ecosystem.
The digital generation uses Venmo for splitting dinners with friends, orders coffee ahead through the Starbucks app, and books an Uber or Lyft to get where they need to go. But this distinction is not only for small, everyday purchases. They’re also making major life moves––such as creating a will or buying a car––online.
Their reliance on digital tools has ultimately shifted how they prefer to manage their money. Millennials, in particular, now demand a seamless digital banking experience that is “equal parts sales and service.” But here’s what might surprise you: While a first-class online experience is crucial to meeting member needs, it’s not the full picture. The digital generation also wants to connect with real humans beyond the tech.
So, what does this mean for credit union leadership as you plan your 2025 priorities?
Financial Literacy Is The New Currency
Contrary to popular belief, the digital generation’s interest in financial education is alive and well. While they value the ease and independence of digital banking, they also recognize the importance of educational content.
In a survey published by MX, 58% and 56% of Gen Z and Millennials, respectively, revealed that they believe financial institutions have an obligation to educate their members on how to achieve financial strength––and many want it via personalized insights based on their data and behavior.
Educational content served through data-driven recommendations represents an opportunity for financial institutions to attract and retain members based on their individual needs.
Investing Is About More Than Money. It’s About Values
When the digital generation invests, their values are top of mind, often playing a vital role in how they manage their money. According to a U.S. Bank Investor Research Survey, 65% of Gen Z are motivated to invest in causes they are passionate about, followed by 59% of Millennials and 45% of Gen X.
This means that the digital generation is likely to care about not only what you can do for their personal wealth but also what your financial institution does for the world. Credit unions have a significant advantage here. As member-owned nonprofits, your missions are rooted in community support.
The digital generation feels best served when making financial decisions that align with their identities. That’s why when it comes to engaging new members from the digital generation, mission-driven marketing and messaging are key.
Artificial Intelligence Must Align With Human Integrity
AI is a hot topic, but that doesn’t mean it’s the perfect solution to every financial problem. While the digital generation values innovation, they also value the ability to engage with their banking provider––their human banking provider.
Nearly 30% of Americans prefer in-person banking options. While digital banking succeeds in delivering convenience, it is missing one critical component: human connection. Accenture’s Global Banking Consumer Study reports that while most members rely on digital banking for “quick functional tasks,” when it comes to solving more complex problems, 63% turn to their branches for emotional support and guidance.
As digital solutions continue to evolve, financial institutions that strike a balance between digital and traditional banking solutions will win. And what is least surprising of all? Everything the digital generation is seeking can be well-served by a credit union partner.
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