Spotlighting Millennials and Gen Z: Credit-Informed Marketing in the Modern Era

The numbers say it all: Millennials and Gen Z now make up nearly half of the US population.¹ With Millennials doubling their average net worth since 2019² and Gen Z stepping into the credit scene, these generations’ takeover of the borrowing universe is already well underway. Millennials are hitting their financial strides, earning more, growing their families and boosting their borrowing power. Meanwhile, Gen Zers are securing loans for their first cars and homes — while showing surprising financial savviness by investing at higher rates and earlier ages than previous generations.³

Their rising financial clout means Millennials and Gen Z are set to drive huge demand for financial products and services. Getting on their collective radar isn't just about this year's numbers — it’s about building loyalty that lasts. Think long game: 78 million Gen Zers will be fully in the workforce and active in the credit market within the next decade.⁴ Engaging with them now plants the seeds for a future harvest of loyal customers and steady business growth.

Remember the days of dial-up internet and flip phones? Gen Z doesn’t. To them, the internet has always been fast and smartphones have always been smart. They’ve never known a world without instant access to information at their fingertips. From YouTube tutorials to TikTok trends, their digital literacy is unmatched.

Millennials might be considered digital “pioneers” versus “natives,” but they grew up in a digital-first world. They witnessed the rise of the internet, experienced the advent of social media and were the first to embrace smartphones, making mobile technology an integral part of their daily lives.

This is why traditional marketing tactics alone haven’t always resonated with Millennials — and are practically useless with Gen Z. From print ads to direct mail campaigns to once-coveted spots in glossy magazines, the old standbys by themselves just don’t hit the mark like they used to. Millennial and Gen Z consumers are used to the convenience of online shopping, digital banking and on-demand services. They’re also highly selective about the brands they engage with, favoring those that offer authenticity and a strong online and social media presence. And for these generations in particular, a single bad experience — such as receiving an enticing offer based on outdated data, only to be denied later — can ruin the relationship and drive them to other brands ready to fill the gap.

Before talking tactics, ask yourself: What are these younger borrowers ultimately hoping to get out of their brand interactions? While they certainly want to align themselves with brands that share the same values as themselves, one thing that continues to stand out — and is actionable for financial marketers when done right — is their craving for personalized experiences.⁵

The digital upbringing of Millennials and Gen Z shaped their expectations and behaviors in profound ways. They don’t want to be just another number in a database; they want to feel seen and understood. They’re used to getting exactly what they want, when they want it — from Netflix recommendations to a new credit card. Traditional marketing tactics like generic email blasts likely aren’t going to cut it with these 20-, 30- and early 40-somethings, whereas a tailored email offering a loan product specific to their needs and interests stands a greater chance of making them stop and take notice. 

But you can’t just market to these audiences in one way alone. The modern era of credit marketing is both full-funnel and omnichannel. This means building and acquiring custom audiences that align to your risk thresholds, presenting offers consistently across traditional and digital channels, and leveraging innovative data sources beyond traditional credit information.

For younger consumers, seamless, omnichannel interactions are expected. They might start researching a product on their phones, continue on their laptops and complete the purchase in a store. For lenders, creating a cohesive experience across all touchpoints is crucial.

In short, it’s about being aware and present wherever your customers are. Personalization is key, but it requires understanding customers’ histories, behaviors and preferences. This means using regularly refreshed and enhanced traditional, blended and alternative credit data to create risk-aligned audiences — as well as marketing data to tailor the creative elements. With more accurate, data-driven insights, you can deliver hyper-relevant credit offers that younger consumers are more likely to act on.

Personalization isn’t just about the offer itself; it’s the experience of receiving it. In today’s fast-paced market, timing and delivery can make the difference between a hit and miss. Move fast while the offer is fresh and reach out through channels your customers love.

Meet them when they are

Building offers on fresh data is crucial, but delays in delivery can cost you customers. Take Gen Z grads starting their first jobs, for example. If your credit card offer with cashback rewards on everyday purchases like groceries and streaming services arrives after they’ve chosen another card, you’ve missed your chance. This delay can hurt your brand’s agility and responsiveness.

Modernizing your marketing tech and integrating diverse datasets can cut down the time from data access to offer activation. This ensures your offers are timely and targeted, and meet the high expectations of young consumers who value instant gratification and seamless interactions.

Meet them where they are

Research indicates 68% of consumers are more likely to buy if a brand engages with them personally across channels.⁶ For Gen Z and Millennials, this number is likely higher, spotlighting the need for a tailored marketing strategy that engages these audiences through their known preferred channels.

Sending a credit card offer via direct mail to a Millennial who prefers email can result in a missed opportunity. Delivering offers through the right channels not only enhances their experiences but can boost conversion rates. Here, a modern prescreen solution not only enables you to uncover target audience needs and preferences — but also helps you activate offers across multiple channels quickly, ensuring your messages reach the right consumers effectively.

Targeting younger audiences with personalized, credit-based offers through their favorite channels can significantly boost customer satisfaction and response rates. In addition to enhancing marketing effectiveness, this also helps maximize revenue growth. However, outdated systems and manual workflows can slow down campaign execution, considerably reducing potential benefits.

The financial industry is evolving fast — and those who don’t adapt risk being left behind. By modernizing your prescreen marketing efforts with a focus on personalization, you can attract younger consumers and build long-term loyalty. 

Ready to learn more? Get our Quick Guide to Modern Prescreen Marketing to discover how TransUnion® Advanced Acquisition and the latest, potent acquisition best practices can help you meet the high expectations of Gen Z and Millennials — ultimately growing your bottom line.