Banking Needs to Catch Up to Gen Z

Key Findings of the Study

• Gen Z will be the wealthiest generation in history by 2035 – yet legacy lending systems are completely misaligned with how they borrow. They don't visit branches, they don't wait 3 days, and they don't forgive bad digital experiences.

• Credit unions are disappearing fast. Only 4,287 federally insured credit unions remain in Q4 2025 – down from 5,102 in Q1 2023. Institutions that can't modernize are being absorbed or shut down.

• Liquidity is trapped, not absent. Credit union assets grew 5.4% YoY, but loan growth sat at just 4.6% – the gap is caused by origination friction, not a lack of capital. The money is there. The process is the problem.

• 62% of Gen Z are already open to AI managing their finances. They aren't afraid of algorithms – they're afraid of slow, outdated ones. AI isn't a barrier to adoption; it's the expectation.