According to PYMNTS.com, a new report from PYMNTS Intelligence and Velera reveals that 62% of Gen Z turns to AI for financial planning guidance. The study, titled “Digital-First Retention Playbook: Winning Gen Z Loyalty at Credit Unions,” shows this generation feels they face a tougher financial landscape and demand fast, tech-forward service. Their willingness to switch financial providers is accelerating, and nearly one in three say they trust digital creators on platforms like TikTok and YouTube for financial advice. While they prefer online tools for payments, nearly half still want in-person support for advice, requiring a consistent cross-channel experience. The report warns that Gen Z views AI as an everyday utility and expects institutions to anticipate needs and offer personalized insights immediately.
The Loyalty Trap
Here’s the thing: credit unions are in a tricky spot. The report says they actually score well with Gen Z on understanding needs and being tech-savvy, even outperforming marks from older groups. But that might not matter. Gen Z’s loyalty isn’t automatic; it’s assembled. They’ll pull advice from an AI chatbot, a TikTok creator, a parent, and their bank app without a second thought. The institution that provides the best, fastest, most relevant piece of the puzzle gets that piece of their business. It’s a brutal, modular approach to personal finance that traditional customer lifetime value models just don’t account for.
Authenticity Is A Channel Problem
So what does “authentic” even mean to this group? The data presents a fascinating contradiction. They want digital speed for transactions but human touch for complex advice. That’s not really a contradiction, though. It’s a specification. They want the right tool for the job, and they expect every tool—whether a branch teller or an AI chatbot—to speak in a way that feels genuine and relevant to them. The peril for credit unions is creating a fractured experience. The opportunity? Building a brand voice and service quality so consistent that moving from a mobile app to a teller window feels seamless. That’s incredibly hard to do.
AI Is The New Table Stakes
Let’s be clear: when 62% of a generation is already using AI for financial planning, the debate is over. AI isn’t a fancy feature for the future; it’s a basic utility they expect right now, like online bill pay. The report’s warning is stark: if credit unions fall behind, the comparison will be immediate. Young consumers won’t wait for you to catch up. They’ll compare your clunky, generic interface to the hyper-personalized, anticipatory insights they’re getting from whatever fintech app or tool they downloaded last week. The bar isn’t just high; it’s moving upward at a dizzying speed.
The Window Is (Actually) Open
Now, this isn’t all doom and gloom. The report points out that credit unions retain edges in member service and community understanding—things that are very hard for pure-play digital apps to replicate. Gen Z is poised to become the largest, wealthiest generation ever. The institutions that can marry that trusted, local reputation with a genuinely digital-first, AI-native service model have a huge chance to win. But they have to move fast. They need to speak Gen Z’s language across social media and podcasts, not just in brochures. Basically, they need to be omnipresent and omnipotent with their service. No big deal, right?
