Getting a Gen Z member to join a credit union is one challenge. Keeping them is another, and the data points to it being a challenge credit unions are losing right now. Solving credit union member retention for this generation means rethinking what happens in the months after a member joins, and how to keep them engaged past sign-up.
Gen Z credit union members are 2.5 times more likely than the average member to say they’ll probably leave their institution: 36% vs. 14% across all age groups, according to PYMNTS Intelligence’s 2025 Digital-First Retention Playbook. Only 49% of Gen Z members who name a credit union as their primary institution consider it “extremely good value,” compared with 60% at the largest banks, per McKinsey’s research on the credit union sector.
Key takeaways:
- Gen Z credit union members are 2.5x more likely to say they’ll leave than the average member (37% vs. 14%), and only 49% see their credit union as “extremely good value,” compared with 60% at the largest banks.
- That elevated switching intent isn’t a one-time finding: a separate 2025 PYMNTS study found 37% of Gen Z members likely to switch institutions within a year, more than double the 15% rate across all generations.
- Gen Z doesn’t default to institutional loyalty. Filene Research Institute finds they prioritize convenience, value, and progress toward financial goals, and learn about money from creators and peers before their financial institution.
- Credit unions personalizing onboarding videos have reported stronger digital adoption. One credit union using SundaySky increased its video production and delivery by 75% without increasing headcount.
Credit unions have a Gen Z retention problem
The switching-intent data on Gen Z isn’t a one-off. PYMNTS Intelligence’s Credit Union Innovation Readiness Report found nearly the same pattern three months earlier: 37% of Gen Z members said they were at least somewhat likely to switch institutions within a year, more than double the 15% rate across all generations. That’s two independent surveys landing on roughly the same ratio, just months apart.
Want the full picture on video across financial services? Get the Video Solutions Guide for Financial Services Leaders.
What keeps a Gen Z credit union member engaged
Filene Research Institute’s research into how Gen Z navigates money offers a clue why Gen Z members are harder to retain: they prioritize convenience, value, and progress toward their own financial goals over loyalty to any single institution, and they don’t treat staying with one provider as a given. Many keep relationships with several financial providers at once and consolidate only once their goals become more concrete.
This generation also doesn’t learn about money from their financial institution first. Filene’s research found Gen Z turns to parents, YouTube creators, Reddit communities, and peers before their bank or credit union. A welcome email, a first statement, and a loan reminder are all competing with those sources for credibility.
For credit unions to stay relevant with Gen Z members, it requires continuous, fresh proof that the relationship is worth keeping and giving them reasons to stay engaged.
The credit union moments that work best for personalizing with Gen Z
Onboarding, loan servicing, statements, and routine member support questions are moments every member lives through, and among the highest-opportunity ones for feeling personal:
- A welcome sequence created around a member’s product and next step
- A statement that highlights what’s relevant to their situation
- A payment reminder tailored to their balance and due date
That opportunity lines up with the value-perception numbers above: Gen Z members rate their credit union noticeably behind the largest banks, per McKinsey’s research on the credit union sector. A communication that reflects a member’s balance, product, or situation gives them a reason to believe the relationship is personal.
Where credit unions get stuck
A common pattern with credit unions: a solid onboarding email, a clean statement template, consistent production of communication materials, but the same version gets sent to every member. When that’s the case, a 24-year-old member with a new auto loan and a member three years away from retirement can end up with identical guidance, even though the credit union already holds the data to personalize better.
Personalized video changes what those moments look like by assembling the video from each member’s account and behavioral data the moment it plays, instead of producing one version and sending it to everyone. SundaySky‘s enterprise video creation and personalization platform lets a credit union’s team create a single onboarding or statement video once and have it render individually for every member: their balance, their product, their next step, without a separate version for each one.
A common pattern: a solid onboarding email, a clean statement template, consistent production values, but the same version gets sent to every member. When that’s the case, a 24-year-old member with a new auto loan and a member three years from retirement can end up with identical guidance, even though the credit union already holds the data to tell them apart.
Personalized video changes what those moments look like by assembling the video from each member’s account and behavioral data at the moment it plays, instead of producing one version and sending it to everyone. SundaySky Create, SundaySky’s enterprise video creation and personalization platform, lets a credit union’s team build a single onboarding or statement video once and have it render individually for every member: their balance, their product, their next step, without a separate version for each one.
One credit union using SundaySky increased its video production and delivery by 75% without increasing headcount.
See how SundaySky Create works for credit union teams →
Start with onboarding, then expand from there
Credit unions don’t need to personalize everything at once. New member onboarding is a solid starting point, since it’s the highest-impact moment for activation and the one most likely to determine whether a new signup becomes a dormant account. Account statements and loan or product education are natural next steps, followed by targeted offers to members who’ve already shown interest in a specific product.
Each of these steps uses data the credit union should already have readily available.
Frequently asked questions
Why are Gen Z members leaving credit unions at a higher rate than other generations?
Gen Z members are 36% likely to say they’ll leave their credit union, compared with 14% of members overall, per PYMNTS Intelligence’s 2025 research with Velera, a pattern a separate 2025 PYMNTS study also found (37% likely to switch, versus 15% across all generations). The driver isn’t dissatisfaction with the idea of a credit union. Filene Research Institute finds Gen Z simply doesn’t default to institutional loyalty the way older members might, and expects an ongoing case for value rather than a one-time reason to join. When onboarding, statements, and everyday communications stay generic after signup, Gen Z members don’t get that case, and they act on it faster than other generations.
What’s the difference between personalized video and a standard onboarding email or statement?
A standard onboarding email or statement is the same document sent to every member, sometimes with a name and account number swapped in. Personalized video is generated from each member’s actual account and behavioral data, including their balance, product mix, and next best action, and rendered individually at the moment it’s viewed. Two members watching the same onboarding video see two different videos, each reflecting their own situation, without a video team producing a separate version for each one.
Does this require a big production team or budget?
No. SundaySky is geared for credit union teams without dedicated video production staff, not just large enterprises with in-house creative departments. One SundaySky credit union customer increased video production and delivery by 75% without increasing headcount. The heavier lift comes upfront, creating the videos themselves once and connecting them to member data. After that, the platform renders each member’s version automatically.
Is personalized video secure enough for financial services communications?
Yes. SundaySky holds SOC 2, HIPAA, and GDPR certifications, and the platform includes role-based access controls that let credit unions govern who can create, edit, and publish content. This matters because when personalized video draws on live member data rather than a static template, the governance around that data has to hold up to the same scrutiny as any other member-facing system.
See how it works
Gen Z members who join a credit union are already telling it something: they’re willing to try an alternative to a bank. What happens in the months after that determines whether they stay.
Book a demo to see how SundaySky helps credit unions turn onboarding, statements, and everyday communications into personalized video, without adding to a small marketing team’s workload.
