Fintech’s Emerging Role in The Gig Economy: What You Need to Know

With the increasing digitization of business, the freelance gig economy has seen considerable growth over recent years. 

In Egypt alone there are some 14 million gig workers and numbers are rising across the MENA region.

Unfortunately, traditional financial methods aren’t tailored for the modern digital gig economy. Banks are often unwilling to provide services for freelancers, even high earners with different and sporadic income streams. This makes it difficult for freelancers to open accounts and apply for loans, insurance, and other financial services. Launching your very first online store or freelancing career shouldn’t be this hard.  

But luckily, with the rise of Fintech, a new financial solution for the digital era is here. 

The emergence of Fintech in the gig economy 

Fintech solutions bridge the gap and provide workers in the gig economy an alternative financial system. 

Gig workers can earn more than 9-5 ‘traditional’ workers, making it seem unfair that banks view them as a risk. 

Why should a hard-working freelancer have trouble finding medical cover, obtaining a mortgage, or setting up a bank account to pay their bills just because they prefer to freelance?

Banks fail to acknowledge key data about the activities of freelancers and their true potential. But that’s where Fintech solutions come in. 

Fintech businesses are uniquely positioned to provide a vital service to millions of gig workers while closing the gap on traditional payment services. Ultimately, both gig workers and Fintech businesses benefit from this arrangement. Gig workers gain access to flexible payment solutions, cheaper fees, optimization, and application integration, while Fintech businesses gain a client base of low-risk freelancers. It’s a win-win. 

AI and machine learning are revolutionizing the Fintech financial game by giving insights into gig workers and calculating the risks involved. Unlike brick-and-mortar stores of the past, financial software also goes through constant tests, like a regression test, to ensure you’re always getting the best service. 

By using pools of data to make smarter decisions, Fintech businesses can provide a more tailored and optimized service that puts users first. Furthermore, by providing a solid service, they spend less on customer acquisition as their reputation grows.  

PayTabs social commerce platform

Paymes serves as PayTabs social commerce platform across the MENA region. Members of the gig economy will be able to receive instant payments over social media platforms, for any services they render.
The micro merchant community will benefit from being able to turn their talent and creativity into payments instantly. Countries Currently Supported include UAE, KSA & Egypt
Find out how PayTabs social commerce platform can help you: here

Emily Rollwitz – Content Marketing Executive, Global App Testing
Emily Rollwitz is a Content Marketing Executive at Global App Testing, a remote and on-demand app testing company helping top app teams on how to build an android app from scratch and deliver high-quality software, anywhere in the world. She has 5 years of experience as a marketer, spearheading lead generation campaigns and events that propel top-notch brand performance. Handling marketing of various brands, Emily has also developed a great pulse in creating fresh and engaging content. She’s written for great websites like Airdroid and SME News. You can find her on LinkedIn.