From automated personal finance to on-demand insurance, these startups are creating more personalized financial services for gig workers and companies.
The gig economy — a labor market characterized by flexible contractor work — is no longer a niche market. With an estimated 57M gig workers in the US alone and over $200B in global annual transaction volume, the gig economy represents an important segment of the world economy.
However, traditional financial services products are not built with the specific needs of these workers and companies in mind. For example, gig workers without a regular income stream often have difficulty getting approved for loans or other banking services through traditional channels. As a result, a growing cohort of fintech startups has emerged to address the gaps in this market with more personalized financial products and services.
Since the Covid-19 shutdown orders, many gig workers have seen a decline in their income. At the same time, the demand for other gig services, like grocery delivery, has grown. Regulatory pressures — such as California’s AB5 law — will likely also play a part in shifting the dynamics of the gig economy. While greater regulation could expand benefits for gig workers, it also threatens the economic model for many of the companies reliant on gig workers, and consequently the fintech startups catering to this market.
Using CB Insights data and the Gig Economy Value Chain Collection, we identified 70+ private companies looking to provide better financial services for the gig economy.
This market map includes private, active companies only that have created unique products for gig workers or formed partnerships with gig economy companies; it is not intended to be exhaustive of the space. Categories are not mutually exclusive and companies are mapped according to primary use case.
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