Why Millennials and Gen Z are Turning to Credit Unions

People born between 1981 and 2012 are typically classified into two generations: Millennials and Gen Z (also called Zoomers). Although there is a 31-year span of time that exists between elder Millennials and younger Gen Zs, the rapid evolution of technology has uniquely impacted their worldview and shaped how they engage with the world around them.

In general terms, there are many notable differences between these two groups. But they also share a stark similarity when it comes to money: both generations hold strong feelings of financial insecurity. According to Deloitte’s 2025 survey, 48% of Gen Zs and 46% of Millennials say they do not feel financially secure. The increasing cost of living continues to be a top concern that weighs heavily on their minds.

While credit unions can’t control the economy, they can serve as stable partners for Millennials and Gen Zs who are trying to get their financial footing and build confidence in the face of uncertainty.

Credit Unions vs Banks for Millennials and Gen Z

Credit unions are not-for-profit financial cooperatives that are member-owned, while banks typically operate for profit so they can benefit their shareholders. Because of their operational structure, credit unions bring value to their members in ways banks can’t — credit unions return profits to members through lower fees, better rates, service enhancements, scholarships, and community involvement. Their purpose is to improve their members’ overall financial well-being.

This fundamental difference is especially impactful to Gen Zs who are just starting out or older Millennials who are trying to accumulate assets.

Why Do Millennials and Gen Z Choose Credit Unions?

There are several reasons Millennials and Gen Zs choose to bank at credit unions, but we’ve compiled five reasons below.

1. Credit unions are aligned with Millennial and Gen Z values. Credit unions are purpose-driven financial institutions; aside from being member-owned, they’re locally managed with increased interest in doing their part to make a positive impact on the local communities they serve. From hosting food drives to employee volunteerism, credit unions take action to improve the well-being of people. Membership is inclusive, and every member has an equal voice, regardless of how much money is in their account.

2. Credit unions provide accessible financial solutions to help members save money. As Millennials and Gen Z are establishing themselves financially and working towards big life goals, it’s important they have access to options and flexibility. Credit unions rise to the occasion by offering a full range of financial services with competitive rates and lower fees than banks. This winning combination is crucial for young adults who may face more financial insecurity than older generations. Lower rates and fees decrease the overall cost to borrow money, effectively removing barriers that can prevent Millennials and Gen Zs from reaching financial goals.

3. Credit unions offer personal service backed by technology. A member isn’t just an account number. Each member has unique goals, and credit unions develop deep relationships to offer personalized services that help turn dreams into reality. Members can also benefit from robust digital banking services that provide real-time access for banking on-the-go (often at no extra charge!) as well as a nationwide network of ATMs.

4. Credit unions believe knowledge is power. Many young adults have questions about how to successfully manage their finances. Credit unions promote financial literacy through free on-demand learning portals, webinars, one-on-one meetings, and in-person events. At Peak Credit Union, sharing knowledge is a part of our DNA. we continue sharing financial education in local schools to help the next generation feel empowered.

5. Money deposited at a credit union is safe. Most credit unions are insured by a federal agency called the National Credit Union Administration (NCUA) for deposits of up to $250,000. This is a similar level of protection that banks offer through the Federal Deposit Insurance Corporation (FDIC). To see if a credit union is regulated by the NCUA, search this directory on their website.

It’s important to acknowledge that, yes, these benefits are for all credit union members regardless of which generation they belong to. However, with the heightened financial stress that Millennials and Gen Z are under, choosing a financial institution like a credit union can both maintain personal convictions while helping ease doubt and establish a positive trajectory for future financial goals.

How Do I Join a Credit Union?

Joining a credit union is a straightforward process that typically involves showing government-issued ID, depositing a small amount of money that serves as your ownership share, and/or proving you reside in a specific area where they are allowed to operate.

Depending on their rules and directives from the NCUA, they may have other specific eligibility requirements that are clearly stated on their website.

How Do I Join Peak Credit Union?

Peak proudly serves over 250,000 members with 35 branches across Oregon and Washington and powerful digital banking tools. We value the perspective each member brings and are honored to help unite our communities in lifting each other up.

We’re here to support you in achieving your unique financial goals — whether that be to save, buy a new car or boat, purchase a home, invest money, bundle insurance, fund retirement, start a business, or a combination of this and more!

At Peak, building community isn’t just a belief — it’s a promise. We’d love to have you join our community. You’re eligible if you meet any of these:

• Live, work, worship, or attend school in Washington.

• Live or work in the following Oregon counties: Benton, Clackamas, Coos, Crook, Deschutes, Douglas, Jackson, Jefferson, Josephine, Klamath, Lane, Linn, Marion, Multnomah, and Washington.

• Make a $5 charitable donation to Relay for Life or Habitat for Humanity (through the credit union during account opening).

• Are an immediate family or household member of a Peak CU member.

If you’re ready, click here to get started.