This article was first published on LinkedIn Mar. 7, 2026
Democratization and sovereignty are two buzzwords that seem to be popping up everywhere I look. Specifically, I hear a lot of chatter about how the SoFis and Chimes of the world have democratized consumer finance by creating a better user experience. They got rid of so-called banker’s hours, streamlined complex paperwork, eliminated high account minimums, and made high-yield savings and fractional investing accessible to anyone with a smartphone.
Those are all cool features, but is that really what you’d call democracy? I’ll go ahead and say it out loud. I’m calling bullshit. That’s not democracy; that’s figuring out a more efficient way to get consumers to part with their money.
Now consider credit unions. Every member is an owner. One person, one vote, regardless of the size of their balance. This is democracy at the foundational level. The “profits” aren’t paid to large, distant shareholders; they are returned to members through lower interest rates and higher dividends. Seriously, what could be more democratic than that?
But do you know how many times I’ve seen a credit union actually play the democratization card that they all carry in their hip pocket? Zero.
We’re Fighting the Wrong Fight
Executives from credit unions large and small are getting all spun up trying to figure out how to attract Gen Z. The answer, or at least the popular thinking? Throw money at the problem by taking on the digital banks feature for feature.
I’m sorry to burst your bubble, but you will never, ever win a features war with SoFi or Chime, not to mention any of the mega banks. You may be able to play to a draw if you’re really good at it, but you’ll never outright win.
What does that mean to the future of credit unions? Are they doomed because they’ll always be outdigitized by giant, for-profit monsters? Instead of trying to be just like a bank except smaller and happier, how about leaning into the competitive differentiators that make credit unions credit unions – like the ideas of democratization and financial sovereignty?
You’ve seen more than enough research on this topic.
From EY: 51% of Gen Z respondents cited ESG (Environmental, Social, and Governance) factors as a primary reason for choosing a financial provider.
From Fiserv: 84% of Gen Z say they make purchasing decisions based on their personal beliefs.
These are just a couple of examples. The point is, Gen Z seems to have found a balance between heart and head. And in a world asking for ethics, transparency, social purpose and democracy in financial services, for-profit banks will only ever be posers. In the meantime, credit unions always have been, are now and always will be the real deal.
Setting Expectations
I can’t tell you how many times I’ve heard someone at a conference tell a credit union audience that their members’ expectations are being set by Amazon and Venmo and the like. Frankly, I think that sets a pretty low bar. How many times has your same-day Amazon delivery shown up three days later? And don’t even get me going on trying to dispute a charge on your Venmo debit card.
So let’s stop chasing the SoFis and the Chimes, and instead beat them at the game only credit unions can win. I think credit unions have almost everything they need to position themselves as the gold standard in consumer financial services. They just need to add a few tech pieces that are uniquely credit union. After all, if your tech stack forces you to walk like a bank and quack like a bank, well …
The Grand Prediction
One day, there’s going to be a secret meeting at Amazon HQ. Jeff Bezos will be presented with a slide deck that suggests the company needs to up its game to keep pace with the expectations set by credit unions. His face will become ashen and his shoulders will slump as he realizes credit unions have something Amazon never will: trust born of ownership, not algorithms.
Mark my words. You heard it here first.