Nov 23 2015

Gen Y vs Gen Z: Understanding Key Differences

Report  
Number  
382

Generation z is made up of the millions of Americans. While engaging Gen y has been a priority for credit unions in the last 10 years, it’s not too early to start thinking about capturing Gen Zers as loyal members.

James Marshall
The Cooperative Trust Manager
Filene Research Institute
Manpreet Nat
Research Associate
Filene Research Institute
Report Number 382

Executive Summary

While engaging Gen Y has been a priority for credit unions in the last 10 years, it’s not too early to start thinking about capturing 'Gen Zers' as loyal members. Gen Z is made up of millions of Americans born in the mid 2000s to present day. Recognizing their importance is the first step. However, what distinguishes Gen Z from their predecessors, Gen Y?

What is the research about?

In this infographic we analyze the key similarities and differences between both generations as well as the financial solutions credit unions can offer to become Gen Z's financial institution of choice. By understanding the financial preferences of Gen Z today, credit unions can be on the fast track to engaging the credit union members of tomorrow.

What are the credit union implications?

Key implications for credit unions include:

  • Gen Z are looking for less credit opportunities. Credit unions need to find other services to supplement lending revenue.
  • Gen Z are the first true digital native generation. Credit unions need to utilize cellphones or computers outside of the branch.
  • Gen Z are more likely to start their own businesses. Credit unions need to have products and resources to serve entrepreneurs.
  • Credit unions face competition from mobile financial companies with Gen Z who significantly favor mobile platforms compared to Gen Y.