4 charts, Member Exclusive

What independent workers (don’t) want from their bank, in 4 charts

  • Independent workers in the U.S. are seeking new banking options, because their needs are not being adequately served.
  • Millions are looking to switch banks in the next year, creating a major opportunity for banks to capitalize on.
close

Email a Friend

What independent workers (don’t) want from their bank, in 4 charts

The independent economy – which includes freelancers, independent consultants, content creators, on-call workers, and merchants – is growing fast. It currently consists of 68 million people in the U.S. alone, and it’s estimated that by 2025, it will include over half of all U.S. workers.

Despite the rapid growth, this market remains largely underserved when it comes to their banking needs. Recently, a number of challenger banks and fintechs have sprung up to offer personalized services tailored to the needs of independent workers. Examples include Lili, Oxygen, Lance, Novo and indi. However, so far, major banks and traditional financial institutions haven’t stepped in to sufficiently fill this growing gap in the industry.

The independent economy – which includes freelancers, independent consultants, content creators, on-call workers, and merchants – is growing fast. It currently consists of 68 million people in the U.S. alone, and it’s estimated that by 2025, it will include over half of all U.S. workers.

Despite the rapid growth, this market remains largely underserved when it comes to their banking needs. Recently, a number of challenger banks and fintechs have sprung up to offer personalized services tailored to the needs of independent workers. Examples include Lili, Oxygen, Lance, Novo and indi. However, so far, major banks and traditional financial institutions haven’t stepped in to sufficiently fill this growing gap in the industry.

Every customer has specific needs, but a business of one is a different ball game. Independent workers have unique requirements, as they have to manage their income, taxes, savings, and other financial obligations on their own, in addition to running their business. So when it comes to bank account offerings, what exactly are they looking for?

Abound, a firm that builds financial APIs for the independent economy, turned to independent workers themselves to learn more about their specific banking needs. Abound surveyed over 400 independent workers from across the U.S., representing a variety of roles, income levels, age groups, and years worked. Findings highlight how independent workers feel about their current banking situation, the problems they face, the features they care about the most, and what their ideal bank account would look like.


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “What independent workers (don’t) want from their bank, in 4 charts”

Data Snacks, Member Exclusive

Data Snack: Millennial retail traders rise during the bear market

  • Millennials opened 46% of all new retail trading accounts in the first half of 2022, according to DriveWealth’s Global Investor Report.
  • The ability to invest with small dollar amounts was the most frequently cited motivator to start investing.
Lindi Miti | December 01, 2022
Green Finance, Member Exclusive

Green Finance Briefing: The stroll to zero – finance has a long way to go

  • At COP27, there were no commitments to phase down or reduce fossil fuel use in the final overarching deal, and there was no breakthrough in the rules of finance either.
  • GFANZ faces a serious question: what is the purpose of a net-zero alliance when members are allowed to continue investing in fossil fuel expansion?
Iulia Ciutina | November 30, 2022
Embedded Finance, Member Exclusive

Embedded Briefing: SMB servicing presents strong potential for embedded finance

  • Across the US, UK, and Europe, the SMB embedded finance market presents a $110 billion opportunity.
  • SMBs are demanding easier access to capital, simplified financial management, and card issuing capabilities.
Subboh Jaffery | November 29, 2022
Blockchain and Crypto, Member Exclusive

Bankchain Briefing: FTX — implications, impact, and the way forward

  • In the aftermath of FTX, the crypto world seems to be in disarray.
  • Where do we go from here?
Ismail Umar | November 28, 2022
Lending, Member Exclusive

Lending Briefing: Q3 credit lines are at all time high while delinquencies rise

  • Earlier this year, lenders were becoming more comfortable to lend to subprime borrowers due to record low delinquency rates across products.
  • However, with a recession on the horizon and inflation closing in, the winds of change are blowing with many trends returning to their pre-pandemic patterns.
Iulia Ciutina | November 23, 2022
More Articles