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US financial institutions (FIs) will face low digital account growth over the next few years. But some customer groups will have higher growth potential than others, and FIs must understand how to build relationships with them.

The trend: Credit unions face a demographic challenge: Their average customer age is 53, and baby boomers now account for 39% of their members鈥攁n 11-point increase since 2015, per PYMNTS. How we got here: Many younger consumers default to the FIs used by their parents.

On today鈥檚 podcast episode, we discuss how the beauty industry is venturing into untapped markets, how the conversation of ageism in beauty fits or diverges with the greater trend away from diversity and inclusion, and how brands market to older people while staying relevant with younger audiences. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Principal Analyst Sky Canaves, Analyst Arielle Feger, and CEO and Founder of Ageism Is Never In Style庐 Jacynth-Bassett.

Cyclical trends, such as millennials having children and buying houses, baby boomers aging in place, and consumers tapping into home equity for improvements, could accelerate that growth. Lowe鈥檚 also mapped its long-term blueprint to drive growth and gain share. It includes:. Expand its physical footprint: Lowe鈥檚 plans to open 10 to 15 stores per year, which would help build its customer base.

What this means for banks: Baby boomers are willing to go digital when there鈥檚 added utility for switching over. That means the more user-friendly and useful (for their specific needs) FIs make their mobile banking platform, the more baby boomers could migrate over. Improving apps for baby boomers鈥� accessibility will benefit other users鈥� experiences as well.

Almost three-fourths (74.8%) of Gen Zers will be digital game players by 2027, according to our December 2024 forecast.

Gen Z credit union members are 2.5 times more likely than baby boomers and seniors to say they鈥檒l switch FIs if their credit union doesn鈥檛 innovate, per a December 2023 PYMNTS Intelligence study. Innovation road maps should center on what Gen Z wants, such as Zelle and young adult debit cards. They鈥檙e also looking for innovation in credit card apps, budgeting tools, and QR codes.

Millennials were born between 1981 and 1996; Gen Xers between 1965 and 1980; and baby boomers between 1946 and 1964. Gen Z has diverse interests but limited digital platforms to explore them. Gen Z is in a transformative stage. Around 36% of Gen Zers are between ages 12 and 17, according to the US Census Bureau. Those 18 and older are still finding their footing in adulthood.

Adoption among the cohort will mark an 11.7% uptick in 2024, compared with a 1.7% growth rate for millennials, 2.4% for Gen X, and a 0.4% decline among baby boomers. Apple Intelligence aims to revitalize Siri. The upcoming Apple Intelligence suite could yield significant upgrades to Siri鈥檚 capabilities, potentially increasing both iPhone sales and Siri usage if the features function as promised.