The gig economy has experienced rapid growth
in recent years, as the convenience of a flexible schedule appeals to a wide
base of workers. The unique nature of gig workers’ employment means that they
have specific banking needs.

However, large banks have traditionally
focused their efforts on accommodating the needs of individual consumers and
large corporate institutions. This has left a gap in the financial services
industry, as gig workers’ specialized needs are not being properly met.

To talk more about why and how banks should better serve the gig economy, PaymentsJournal sat down with Mark Vipond, VP, Solution Management at the NCR Corporation, and Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group.

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An
overview of the gig economy in the United States

While rideshare apps like Uber, grocery
delivery options like InstaCart, and meal delivery options like DoorDash may be
the first examples to come to mind, the gig economy encompasses far more workers
than many realize.

It’s hard to pinpoint the exact size of the
gig economy, which is largely due to a lack of industry consensus as to who
qualifies as a gig worker. Even so, there are a number of predominant reports
that have estimated the size of the gig economy.

For example, a U.S. Bureau of Labor Statistics
report, which used U.S. Census data, estimated there are 26 million gig economy
workers in the nation. However, this report only included individuals using gig
work as their primary source of income—not those using it as a secondary or
supplemental source of income. 

A Gallup poll, on the other hand, estimated 56
million non-traditional workers, or gig workers, which is in line with
estimates by Upwork and the Freelancers Association. McKinsey released a report
estimating that there are 42 million gig workers. Unlike the U.S. Bureau of
Labor Statistics, though, these estimates included gig workers with primary
sources of income outside of the gig economy.

Regardless of the ambiguities, explained
Grotta, the gig economy in the United States is undoubtedly significant in
size. “By any measure, we can say that the gig economy is really quite large in
the U.S. As we get more acclimated to gig work as a country,” she added, “I’m
hopeful that we will start to define this a bit more clearly.” 

The gig
economy is wide-ranging, here to stay, and largely underserved

The gig economy began to accelerate after the