How credit unions can attract Gen Z with physical touchpoints
Gen Z, the generation born between 1997 and 2012, already
represents a powerful economic force. In fact, according to a recent Nielsen report,
this group’s spending power is expected to exceed $12 trillion globally by
2030.This generation has distinct preferences and motivations.
They grew up with smartphones, social media and convenient access to
information via the Internet. A generation of digital natives, Gen Z demands
everything to be seamless and personalized – including their financial
services.
Financial institutions that can understand and meet Gen
Z’s behaviors have an opportunity to drive growth and member acquisition with
this critical group. Those who fail to do so risk losing significant market
share to fintechs and neobanks. This charge is especially important for credit
unions, which have an aging average member base.
However, the good news is that one of the channels
preferred by Gen Z is one most credit unions already have – ATMs. According to an
Insider Intelligence survey, a top factor considered when Gen Z choose a new
financial institution was if an ATM was located near them, ranking ahead of
both the presence of branches and online banking
Winning Gen Z at the ATM
While Baby Boomers tend to make more withdrawals because
they want cash, factors like the gig economy are prompting Gen Z to make more
cash deposits since they are often heavy debit users. In addition to ATM
deposits, according to the Federal Reserve’s Diary of Consumer Payments, 76% of
GenZers use cash at least once a month.
To appeal to this generation, the ATM experience must be
frictionless and intuitive, especially as Gen Z compares every interaction to
those with the likes of Amazon, Uber and Netflix. Convenience is key; when Gen
Z uses an ATM, they expect it to be convenient, capable of dispensing and accepting
deposits, and secure.
Gen Z wants more from every interaction. With a 37%
reduction in branches ove the last 15 years, finding a branch is harder than
ever before. This makes it critical to empower them to do as much from the ATM
as possible. Think cardless access, mobile pre-staging, bill payments, loan
applications and more. Finally, maximum availability is a non-negotiable. For
this generation, ATM downtime is more than an inconvenience, but a breach of
trust that could end the relationship.
Finding the Right Path to Success
Of course, this is all easier said than done, especially
for credit unions that have to be judicious with their resources. While most
institutions already have their own machines, many are starting to augment
their existing assets to better attract, retain and serve members.
One strong option that has emerged is joining a utility
ATM network, which means plugging into a network of ATMs located within trusted
retail locations, allowing members to withdraw and deposit cash from where they
live and shop. This provides Gen Z with the convenience they expect while
increasing efficiencies and reducing complexities for the credit union.
However, credit unions should choose their network
partner carefully. Look for those with a proven track record of success and a
large retail presence, especially since availability convenience is so
important to Gen Z. Also prioritize partners that can offer the enhanced
functionality and innovations this group will expect, including cash depositing
capabilities and the ability to tailor interactions.
Gen Z has the potential to disrupt financial services,
and credit unions have a clear opportunity to meet this generation where they are.
By modernizing the self-service channel with the seamless, personalized and
always‑available
experiences, credit unions can transform a traditional touchpoint into a
powerful engine for engagement and growth.
The path forward requires an intentional strategy and the
right partners, those who can deliver reliability,
advanced functionality and innovative features. Credit unions that take these
steps now can strengthen their relevance with Gen Z and position themselves for
long‑term
success.
About Author:
Greg Donahue, VP solution management, NCR Atleos
Greg Donahue, VP solution management, NCR Atleos