Gig workers around the world have long struggled to gain access to many mainstream financial products and services because of their inconsistent cash flow and lack of substantial credit history. Now, they are emerging as one of the hardest-hit groups from the coronavirus pandemic, as demand for their services plummets under lockdown, cutting into their work hours and pay, and their contractor status locks them out of workplace benefits.
With workers especially in need of innovative solutions to help them through the crisis, the already significant revenue opportunity — estimated by Mastercard to be worth $455 billion by 2023 — for financial institutions (FIs) to cater to gig workers is bigger than ever. FIs also have the chance to forge customer bonds that will outlast the pandemic and to polish brand halos. The combination of the large and underserved demographic and its struggles under the pandemic has led to a flurry of innovation from across the financial services industry, resulting in an emerging and dynamic gig economy financial services ecosystem.
In the Gig Economy Financial Services Ecosystem report, Insider Intelligence explores the size and scope of the gig worker market; gives an overview of companies that started making efforts to serve the gig worker market pre-pandemic; presents some of the earliest-moving companies rolling out pandemic-specific financial services for gig workers; and lastly, outlines how FIs who move into the space during this crisis period can make sure their products have a longer-term val