How Banks and Credit Unions Can Attract Millennials and Gen Z before the Great Wealth Transfer

Anyone savvy on the financial landscape knows we are on the cusp of a significant transformation known as the Great Wealth Transfer, where an estimated $84 trillion will pass from Baby Boomers to younger generations. As Millennials and Gen Z begin to pursue new opportunities for spending and investing this wealth, banks and credit unions must prepare by adopting strategies that resonate with these tech-savvy, value-driven generations. Success hinges on understanding their unique preferences, building trust, and offering solutions tailored to their financial needs.

Let’s start with the basics. Why do Millennials and Gen Z matter? Millennials (born 1981–1996) and Gen Z (born 1997–2012) represent a substantial portion of the population, with their combined purchasing power set to dominate the global economy. According to studies, Millennials are expected to inherit $30 to $68 trillion, while Gen Z is poised to follow closely behind. These generations bring different financial habits than the generations prior to them, as they prioritize convenience, personalized experience, and social responsibility. To successfully engage them before the wealth transfer, banks and credit unions must adapt to their expectations.

DeepTarget Experts Offer 4 Key Strategies to Recruit Millennials and Gen Z:

1. Prioritize Digital and Mobile-First Experiences Both Millennials and Gen Z are digital natives who expect seamless, on-demand financial services. More than 95%% of Gen Z owns a smartphone, and Millennials are just as mobile-centric, favoring apps over physical branch locations. To capture their attention, financial institutions which invest in user-friendly mobile banking apps, robust online platforms, and cutting-edge digital services like peer-to-peer payments, budgeting tools, and real-time notifications will receive an excellent ROI. Instant access and intuitive interfaces are also essential such as instant account opening, mobile check deposit, and easy-to-use digital wallets. This streamlined and accessible digital experience is no longer optional—it is expected. Offering these features makes it more likely these generations will choose your bank or credit union over your competitors.‍
2. Emphasize Financial Education Despite their digital savvy, many Millennials and Gen Zers feel underprepared to manage wealth, with studies showing a gap in financial literacy. Banks and credit unions that offer educational resources—like informational videos, online courses, workshops, webinars, or financial literacy apps—can position themselves as trusted advisors for the next generation. By providing guidance on essential topics like debt management, investing, saving for retirement, and homeownership, these generations can feel more in control of their financial futures thus solidifying their trust and loyalty.

1. Promote Social Responsibility and Sustainability Both generations highly value social responsibility and often choose to support companies that align with their values. In fact, nearly 75% of Millennials are willing to pay more for products or services from socially responsible companies. Financial institutions that demonstrate a commitment to environmental sustainability, community support, diversity, and inclusion will resonate with these younger consumers. Promoting your bank’s social initiatives, involvement in local communities, and efforts toward financial inclusion can help build an emotional connection that     attracts these value-driven generations.
2. “Show me that you know me” - Deliver Personalized Financial Solutions Personalization is another key to winning the hearts of Millennials and Gen Z. Financial services solutions that offer data-driven insights allow banks and credit unions to create personalized financial offers, recommendations, and solutions that speak directly to their individual needs. Depending on their individual financial journey, one accountholder may appreciate mortgage solutions or saving strategies, while another might be more interested in student loan management and micro-investment platforms. By harnessing the transformative power of AI, data analytics can create highly targeted marketing campaigns based on individuals’ user behavior, spending habits, and life milestones versus segments or groups. Customized offerings will not only attract these generations but also foster long-term loyalty, when each touchpoint demonstrates that their needs are being understood and met.

It's time for your FI to seize the moment. The Great Wealth Transfer is a once-in-a-lifetime opportunity for banks and credit unions to capture the loyalty of Millennials and Gen Z. By adapting to their needs and preferences, you'll not only secure a prosperous future for your institution but also cement your role as a trusted financial partner for generations to come. The clock is ticking–are you ready to inherit the future?

DeepTarget has a team of seasoned professionals that harness the transformative power of AI through a patented Digital Experience Platform (DXP) and Growth as a Service™/GRaaS™ managed services approach that sets hundreds of community banks and credit unions on the path to success. Combined, these take the guesswork out of personalized communications with automation and scalable solutions where FIs of all sizes can leverage the power of AI to strategically compete with top financial brands.