How Neo Banks are reshaping the gig-economy

The gig economy is ruled by one agenda — “Be your own boss”!

And the tribe here in India is growing at an amazing pace. In-fact one-in-four freelancers across the globe is from India.

Now, you’d expect the payment industry to have evolved at an equal pace too, right? Sadly, that’s not the case.

According to the Freelancers Union, 70% of freelancers have trouble getting paid at some point in their careers. And the legacy banking systems are to blame for a good part of this trouble.

Today there is an evident need for smart banking solutions that offer upgraded services compared to the ones offered by a physical bank. And that is exactly what neo banks do — they give freelancers the power to be the actual Boss! 😎

(Not very convinced — let’s dive in.)

Why are traditional banking services broken for the gig-economy?

If you’re a freelancer you’d agree that being one can be as daunting as it’s rewarding.

Still a little confused? Let’s take a closer look.

So, it’s any other day of the month and you just got a hiring email for a gig you’ve long been waiting for. Adding on to that, you’ve recently successfully completed two other gigs. Yayyy!

You can finally tick off those unpaid bills & pending health insurance payments from your list. 😊

So you rush back and check on those follow-up emails that you sent out to your clients.To your dismay, one client wants to pay you via cheque, which easily adds a week to the payment process.

And the payment for your second gig has been denied due to the ill-formatted invoice that you’d sent.

Neo banks — the ‘true freelancers’ bank’

Sadly, traditional banking is not a ‘one-size-fits-all’ solution. While it might be equipped to serve the SMBs & startups, it lags behind in catering to the financial needs of a freelancer.

But don’t worry, neo banks like Open are here to save the day. Let’s have a closer look. 👀

1)Apply for a business current account in less than 2 min:

One of the primary challenges faced by a freelancer is getting a current account in their name. While most banks deny such requests outrightly, there are few who do provide this service. However, it comes at a great cost.

For example, most of them require you to fill up a never-ending list of KYC documents.

And once the verification is done (which takes ages), you’ll have a current account in place post which you’ll be able to kickstart your banking.

On the other hand, when it comes to neo banks, you can apply for a current account in minutes & while the verification is under process, you can still avail their services.

For example, you can collect payments, link your existing bank accounts & view balances to name a few.

2) Create smart invoices and keep a hawk’s watch on your payment status:

So, you would think that the most difficult part about freelancing is finding a gig; trust us — that’s the easier bit!

Want to know the leading cause of payment denial? Ill-formatted invoices. With banking solutions like Open, you can create GST compliant Invoices to request payments while keeping a check on your payment status.

It’s like having a Willy Wonka Golden Ticket to smart banking!

3) Adopt the payment methods of the millennials:

Why rely on cheques & DDs when you can get paid fast & easy via NEFT, IMPS, RTGS and UPI; they are the new cash!

So,the next time a client wants to pay you via a cheque, send them a smart invoice that is integrated with a payment gateway. Also; this way; you are giving them a wide array of payment options to choose from!

4) No more of managing your accounting and reports manually:

Tracking down payments and expenses is like falling into a rabbit hole.All the more if you are a solopreneur who doesn’t have an accountant to help you understand the technicalities.

With neo banks, you can link all your bank accounts and conveniently track all of them in one place while maintaining proper accounting reports.

Isn’t that cherry on the cake ?

Neo banks are the fintech ninjas leading the gig-economy

With the number of freelancers growing by leaps and bounds in India, it’s only a matter of time till neo banks rule over traditional banks.

With the recent reports, there are now roughly 15 million freelancers based mainly in the urban areas of India, and the number is estimated to double every 5 years until 2035.

I bet by now you are on the edge of your seat hailing ‘Go Neo Banks’!

And well, if you didn’t choose the conventional way of employment, why would you choose the conventional way of banking ?