Raddon’s Bill Handel: How Credit Unions Can Attract Younger Members

By Roy Urrico

The average age of a credit union member in North America is 53 years old, a figure cited by major industry organizations and researchers including the World Council of Credit Unions (WOCCU).

Bill Handel, general manager and chief economist at Raddon, a Fiserv Company.

How credit unions can strategize to attract younger members, and the role personalization, and digital capabilities could play in those tactics are generational topics covered by Bill Handel, general manager and chief economist at Raddon, a Fiserv Company, covered in a Q&A session with Finopotamus.

Handel, described in his Raddon bio as “a seasoned product development and management consultant who leverages his knowledge of consumer and business needs – along with his understanding of how financial services profitability is achieved” – is responsible for all research and analytics programs at Alpharetta, Ga.-based Raddon, which provides innovative research, analysis and strategic guidance to financial institutions.

“A credit union or even a community bank for that matter, really needs to figure out ways in which they generate some attention, some focus from this younger generation, because clearly credit unions are losing that battle at this point. We have seen that in our research consistently for 10 plus years,” Handel told Finopotamus.

Why does education funding provide an opportunity for CUs to attract younger members?

Handel described student lending programs as providing real challenge as well as risk. “If you look at the New York Fed data, the delinquency rates on student loans (have) skyrocketed back.” As of the fourth quarter of 2025, the New York Fed reported that student loan delinquency rates remain elevated following the end of the pandemic-era payment pause. The total delinquency rate of 9.6% of aggregate student loan balances were reported as 90-plus days delinquent.

“They're not quite as high as they were at their peak, but they're very high. And it's an area of high risk,” said Handel. “I think a credit union, while they look at this opportunity, they really have to approach it in the right way.

Handel used the SoFi strategy as an example. SoFi is a financial-services company that was founded in 2011, initially known for its student loan refinancing business. “Then they used that to really broaden out what they do. They built a brand around that. But they then were actually fairly selective in terms of who they lent to. They were trying to understand who would finish college.”

Handel continued, “Because that's the biggest issue is people start college, take out student loans, then don't continue on. And so now they have got all this debt, but they are still stuck with just a high school diploma, and so they do not have their earnings power, and so therefore it is very difficult for them to really pay back those loans. that is where you see the greatest, default activity.”

What SoFi did is “they moved into the area of mortgage lending because they were lending to people who were professionals. And once they finished their medical degree or legal degree or whatever, then they were actually trying to get them to get their mortgage through them.”

How can credit unions attract younger generations?

“There's so much noise out there, where the big banks are making a very big splash with technology, the credits unions have got to rely on something different overall,” Handel suggested. “They've got to think about marketing to that younger generation through their parents, because their parents are where they have the strength.”

Handel recognized that the credit union industry's great cohort strength is baby boomers and Gen X, “a little less with millennials, and then even less with Gen Z at this point. The industry really has to think about this notion of generational marketing. What's really concerning to a parent of a Gen Z or a young millennial is about their kids’ financial health.”

“Marketing to the kids through their parents starting at a very early age and getting them involved in the credit unions is a really critical thing,” said Handel. The simple thing is the debit card, according to Handel. “Getting a card in the hands of somebody at a very early age and then coupling that with financial literacy and education and making good decisions, that's the long-term approach to how we can be more successful.”

He maintained, 20, 30 years ago, the real marketing push was when people went off to college, trying to get people to sign up for your checking accounts and credit cards. “(Now) that's almost too late. You've got to start much earlier.”

Generational marketing is really critical to this, advised Handel. “Think about your value proposition. It's not just going to be about rate, but it's really going to be about working with you to really optimize your financial decisions. We do that with your children.”

What's resonating with the younger generations?

“Digitalization is almost table stakes,” emphasized Handel. “You just can't be deficient in that area. You have to be good, but frictionless.” This means eliminating hurdles that make it difficult to do anything. “You just can't be taking three days where somebody does it in 15 or 10 minutes.”

The key digital factor for credit unions should center on making processes easier and as simple as possible, suggested Handel. How do credit unions reduce friction and facilitate basic transactions without taking on undue levels of risk.

For comparison, Handel cited his process of opening an Apple Card account, the only credit card designed for iPhones. “It was about as simple as you could possibly ever ask. In minutes I was approved, had my credit line, and it was in my phone. That process of making it so simple on the front end and making automatic is entirely seamless.”

How do credit unions compete in today’s environment?

This is where you start tying into the notion of financial health, recommended Handel. “We are there to help you make the right types of decisions. There's so much financial stress out there today, especially among young people,” said Handel. He referred to Raddon research that shows that “about 60% of people who are Gen Z (or) somewhere in that range, think today we're in recession. The reason is because they're struggling themselves personally.”

Beside concerning themselves with costs of everything including college education, automobiles and good and services, “the issue is they can get themselves into such (credit) trouble in a hurry,” said Handel. “I think it is a great role for credit unions to really be a financial guide to help people make good financial decisions, especially younger people.”

Handel pointed out that Raddon research is showing players like Chime making significant inroads. “For the first time ever in our research, just in the last year, we found that, for example, a higher percentage of Gen Zs would look at a fintech as their PFI (primary financial institution) compared to a credit union or a community bank.”

Credit unions need to consider how to compete in the current environment. “We are not seeing the largest banks lose position. In fact, they are strengthening their position among the younger generations. But the Chimes of the world, they are very high up on a national basis among the Gen Zs in terms of PFI status. I think we have to recognize that people especially young people are looking for something entirely different.”