Nearly four in 10 Gen Z credit union members say they’re considering leaving their credit union within the next year, mostly in favor of traditional banks. That’s a significant number, and a substantial challenge for these institutions that want to remain relevant to the next generation of members.
But it’s not just young consumers who are considering their options.
In “The Real Story Behind Member Churn,” a PYMNTS Intelligence and Velera collaboration, we surveyed more than 15,700 consumers and nearly 2,000 small and medium-sized businesses (SMBs). The survey sought to discover why members are leaving credit unions and what it will take to keep them loyal.
In this edition of “Credit Union Innovation Readiness,” learn why:
- Two-thirds of members planning to leave say they’re likely to choose traditional banks over other credit unions. This highlights a clear preference for institutions that offer extensive digital capabilities, easier access and wider product ranges, which are areas where many credit unions currently lag.
- Former SMB credit union members are 131% more likely than average to want budgeting and card management tools. This is a critical wake-up call: These FIs must upgrade digital financial management tools to retain their business clients.
- Both Gen Z members and SMBs that have left these institutions want digital onboarding significantly more: 78% and 111% above average, respectively. Smooth digital onboarding isn’t a luxury anymore; it’s essential to attracting and keeping today’s digitally savvy members.
These insights point directly to what these institutions need to prioritize to reverse member churn. The full report outlines practical, achievable strategies to keep your members engaged and satisfied.
Download the report now to learn more about how these institutions can successfully tackle member churn and build lasting loyalty.
About the playbook
“The Real Story Behind Member Churn,” a PYMNTS Intelligence and Velera collaboration, is based on a census-balanced survey of 15,758 consumers conducted from Feb. 28, 2025, to March 31, 2025, as well as a survey of 1,996 SMBs conducted from Feb. 26, 2025, to March 27, 2025. The report examines which consumers and SMBs are considering leaving their credit unions and why.
