Financial services for the gig economy: Catering to the unique needs of independent workers

SME Banking
05/06/2023 Article

A recent Qorus report discusses the rise of the gig economy and its impact on the future of work and the financial industry. 

Gig workers earn 58% less than full-time employees and often lack access to benefits such as paid sick leave and retirement plans. Gig work can provide flexibility but also leads to financial anxiety and job insecurity, especially for those who rely on it as their primary source of income.

The financial industry has recognized the potential of the gig economy and has started developing services to cater to the unique financial needs of gig workers. Several FinTech and InsurTech companies are offering solutions such as instant payouts, affordable insurance benefits, and financial management tools tailored for gig workers. These services aim to provide financial stability and benefits that traditional employment often offers.

The report also discusses the challenges and policy implications associated with the gig economy. Financial insecurity among gig workers has become a pressing concern, and policymakers are recognizing the need to address it. The European Parliament has approved draft labor legislation that recognizes the employee rights of gig workers. However, there is an ongoing debate about the potential impact of such regulations on flexible work arrangements.

By highlighting the opportunities for banks and insurers to create products and services that cater to the gig economy. By understanding the unique needs of gig workers and offering tailored solutions, financial institutions can tap into this growing market and provide valuable support to gig workers.

To go further, join our special SME Banking Community Open Meet-Up at the Reinvent Forum in Milan on June 16th. You will gain valuable insights and best practices from industry experts and global leaders on monetizing gig economy opportunities. Whether you're building a new business or expanding an existing one, this is the event for you..

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