FinTech Revolutionising the Gig Economy: Empowering UK's Hustle Nation!
This latest edition of our student blog series comes from Sithmi Perera, who is currently pursuing an MSc in Financial Technology (FinTech) at UWE Bristol.
What's the Gig?
The term "gig economy" refers to the transient, project-based labour that is frequently made possible via internet platforms. As of March 2023, it has been estimated that 7.25 million Brits have been employed with the UK's Gig economy workforce with more coming. This trend is changing the nature of work itself, providing options for those who want to pursue side projects or find a work-life balance, as well as for seasoned professionals.
Flexi-licious but Financially Fickle:
Although leaving the 9–5 job sounds ideal, there are financial challenges associated with the gig economy. Even the most seasoned freelancer may find it difficult to navigate the tax code due to unpredictable revenue sources and budgetary challenges. A formula for financial instability is the absence of access to customary benefits like pensions and sick pay.
FinTech to the Rescue!
The gig economy, which offers flexibility and independence coupled with certain financial concerns, is booming in the UK, with jobs ranging from freelance graphic designers to Deliveroo drivers. Even while it's appealing to be your own boss and set your own hours, many people may feel financially vulnerable due to erratic income, erratic tax returns, and restricted access to traditional benefits. But worry not—FinTech is coming to the rescue of the UK's gig workers with a plethora of cutting-edge solutions, much like a knight in shining silicon. The ever-evolving realm of financial technology that is changing the rules. These forward-thinking businesses are creating technologies especially tailored to meet the demands of independent contractors. Imagine on-demand payment systems that deposit your hard-earned money into your pocket quicker than you can say "job well done!" Imagine income monitors that link smoothly to your platform revenues, budgeting tools that adjust to your changing income, and more.
Putting into Practice:
This can be used in multiple ways to benefit workers. Hypothetically let’s say, Sarah, a Manchester-based freelance writer, used to spend many hours battling spreadsheets to keep tabs on her earnings and outlays. And presto! You've got a budgeting software tailored for gig workers! Sarah can now confidently prepare for taxes and invest for the future since she has a clear understanding of her financial situation. Uber driver John, who works in London, discovered a fintech solution that expedited the tax filing process, saving him a significant amount of time and reducing the anxiety associated with tax season.
The Future is FinTech-tastic!
Thanks to new developments like blockchain-based payment systems that promise quicker and more secure transactions and Decentralised Finance (DeFi), which expands access to financial goods, the future of finance for gig workers is bright. Imagine a society in which gig workers may invest their profits in cutting-edge DeFi initiatives or obtain microloans without the need for standard credit checks.
Conclusion:
Opportunities and problems abound in the gig economy, but the emergence of FinTech is revolutionising the independent workforce in the UK. Gig workers may take charge of their finances, gain more security, and prosper in the rapidly changing digital era by adopting these creative solutions. Thus, persevere in your hard work, investigate the FinTech industry, and seize the opportunity for financial empowerment it presents!