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Banking Briefing: Learning the moves to the ‘gig groove’

  • Citi wants to appeal to the gig economy. Meanwhile, banks may be facing major layoffs following their hiring spree just a few months ago.
  • Plus, a quick look at the niche neobank business model dilemma and how a new digital bank for Native Americans has found a way to do things differently.

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Banking Briefing: Learning the moves to the ‘gig groove’

A couple of weeks ago, Citi announced that it is now accepting P2P payments as direct deposits that can qualify for monthly fee waivers. Until now, Citi only waived monthly fees for consumers with an average balance or a direct deposit amounting to $1500 – P2P payments did not fall into the equation here.

Citi’s ‘change of heart’ seems to be geared directly towards gig economy workers. In the press release sent to Tearsheet, Craig Vallorano, head of U.S. retail banking at Citi, says the following:

“Citi is introducing this industry-leading enhancement of direct deposit to help remove a barrier that workers who primarily receive income via P2P transactions may face. We’re proud of this big step forward in the evolution of a more inclusive financial system as we continuously develop our products and services to make them increasingly accessible.”

While the gig economy may be about taking up temporary work, the move itself doesn’t seem temporary at all. The gig economy has grown by 30% since the start of the pandemic, and isn’t showing any signs of slowing down – it’s expected to surpass the full-time workforce by 2027

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