Independent Banker - November 2023 - 58

banks that do " get it " stand out
to the nation's growing pool of
gig workers, freelancers and selfemployed
individuals.
" Independent workers make up a
significant portion of our economy,
and community banks can't afford to
ignore an entire segment of potential
contractors. They are responsible
for paying their taxes, signing up
for their own benefits and other
responsibilities that an employer
would typically handle.
" The number of gig workers has
grown significantly, and that growth
is primarily being driven by the
desire to work from home and have
flexible hours. "
-Tina Giorgio, ICBA Bancard
Freelance contractors and selfemployed
individuals operate in
a similar manner. On the banking
and financial front,
this group operates
somewhere between
the full-time employee
and larger businesses.
Because of this, the
growing segment's
banking needs may
not always fit into the
" traditional " mold.
" The number of gig
workers has grown
significantly, and that
growth is primarily
being driven by the
desire to work from
home and have flexible
hours, " says Tina
Giorgio, president and
clients, " says Abernethy. " If we want
to be true to who we are as banks and
take care of the communities that
we serve, we need to be able to serve
those gig workers and independent
contractors well. "
Seizing a growing opportunity
According to McKinsey & Co., a
growing number of Americans
have become independent workers
in recent years. Whether they're
freelancing or taking on a side hustle,
an estimated 58 million independent
workers are opting out of full-time
jobs. The research firm says that 36%
of respondents to its latest American
Opportunity Survey identify as
independent workers, compared with
27% in 2016.
Gig workers, who perform shortterm
work or take on projects
for multiple clients-often using
an online platform like Uber or
DoorDash-operate as independent
CEO of ICBA Bancard. " The growth is
also being driven by advancements in
technology and business needs. "
This growth opens the doors of
opportunity for community banks that
are agile enough to change on a dime
and have always done an excellent job
of serving specific niches within their
regions. For example, gig workers tend
to depend heavily on digital technology
and, as such, want to be able to receive,
send and transfer funds quickly.
Community banks that understand
this and invest in digital tools can
position themselves well for attracting
gig workers (see sidebar on page 60).
Gig workers' loan needs
Lending is another area where
community banks can stand out from
the crowd, namely because they can
take the time to build close personal
relationships with their customers.
When those customers-some of
whom may not fit the " standard "
business borrower profile-need
loans for expansion, the bank already
understands and can factor in those
nuances when making a decision.
" Lending creates challenges
for gig workers because of the
unpredictability of their pay, but there
are also new ways to assess someone's
creditworthiness without pulling
a credit report and reviewing their
credit score, " Giorgio points out. For
example, a loan officer can review
rent payment histories, utility bill
payments and even cell phone bills
to assemble a complete picture of the
applicant's creditworthiness.
Larger, national banks may not
always take the time or put the extra
effort into their lending decisions.
" Community banks are well positioned
to work with this customer segment
because they're known for supporting
communities with their lending
practices, " Giorgio says. " The fact that
a gig worker lives and works locally,
and can deal with the same person at
a bank and build that relationship, is
particularly important to them. "
Meeting the need for speed
Outside of lending, gig workers and
freelancers also need help obtaining
Gig workers:
Then and now
2023
36%
2016
27%
Source: American Opportunity Survey,
McKinsey & Co.
58 // ICBA Independent Banker // November 2023
Independent Banker - November 2023

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