New Report Highlights the Opportunity of Providing Banking Solutions to Independent Workers
Report finds over 16 million independent workers plan to open a bank account in the next 12 months.
Freelancers Opening a New Account
Freelancers Opening a New Account
SAN FRANCISCO, Oct. 26, 2021 (GLOBE NEWSWIRE) — Abound has released findings from their new Banking the Independent Economy 2021 Report.
The report surveyed 421 US workers who earn the majority of their income from 1099 work. Commenting on the findings, Abound CEO, Trent Bigelow said: “While independent workers are a niche market today, with over 68 million independent workers in the U.S. alone, in the future this growing market will make up half of all U.S. workers. Traditional banks failing to serve this market now creates a perfect opportunity for challenger banks and fintechs to come in and win the market with purpose-built and automated solutions for independent workers.”
Key Findings:
- 51% don’t have a separate account for their business income. Half of the respondents pool their self-employed income into their personal accounts.
- 46% want to open a new account in the next year. Of those who don’t use separate accounts, nearly half want to open one — translating into 16 million of the 68 million current independent workers as potential future customers.
- Only half are very satisfied with their bank. 51% are very satisfied with their current bank, while 34% are only somewhat satisfied, and 15% aren’t satisfied at all.
- Dissatisfaction is from high fees, a lack of features, and poor customer service. The fees that frustrate them the most are monthly maintenance fees and overdraft fees.
- 68% say they are likely to change banks in the next year. Additionally, 52% say they would switch if another bank offered lower fees.
- An ideal banking account would be mobile, identify tax-deductible expenses, and automatically set aside money for taxes. Independent workers are looking for a bank account that will help them navigate the financial management that comes with being self-employed.
To access a full copy of the report, please click HERE.
About Abound
Abound is on a mission to enable greater wealth and wellness for independent workers, resulting in increased retention, revenue, and compliance for those that serve them. Abound’s developer-friendly API lets our partners easily embed benefits into their products, setting aside enough to cover taxes, healthcare, retirement, insurance, and more.
To find out more about Abound, visit www.withabound.com
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