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Rollee’s report unveils a 6% increase in financial challenges for UK gig workers since 2022, with 70% facing difficulties accessing financial products.

Rollee is a fintech start-up that offers secure and consented access to income data; the company estimates that about 25% of financial institutions find it difficult to obtain all the employment and income data while browsing UK gig worker applications.

Recent study from Rollee has shown how challenging it is for gig workers in the UK to navigate the existing banking and finance environment. Indeed, 70% of gig workers in the UK face difficulties obtaining permitted access to financial goods. When comparing these revelations to Rollee’s findings from 2022, the difference is merely 6%. This number won’t be consoling with the way things are going.

When asking for a financial service, 38% of gig workers in the UK are unsure if their bank has a full picture of their sources of income.

The information is derived from Rollee’s recently published Gig Economy Equality Gap report, which examines the present financial isolation of gig workers, the difficulties banks have when conducting credit checks, and the ensuing data gap.

Despite having good credit, 66% of the 1,001 gig workers polled for the study had loan applications denied after becoming gig workers. Despite knowing they can afford a new dwelling, 34% of gig workers have been denied by a bank, building society, or rental agency.

Sixty-eight percent of gig workers said the financial institution did not appropriately assess their employment and income data after they applied.

Many gig workers don’t understand why their applications are rejected. When denied a loan or mortgage, 42% of respondents said the financial institution didn’t explain why.

Can banks accept open finance as the “final frontier”?

Fintech

The majority of gig workers—a staggering 80%—think they don’t have the same access to financial services as regular full-time employees, but why is that?

Out of 503 respondents working for financial institutions, 73% said their risk assessment procedures at the moment can’t view the whole picture of gig workers’ earnings, payments, and job histories. However, 34% of respondents stated that because PAYE workers have more transparent income and job information than gig workers, they are more likely to approve an application from the former.

The CEO and co-founder of Rollee, Ali Hamriti, talked about the challenges faced by gig workers in the UK. According to his research, “credit checks have a data disconnect, which makes it difficult for financial institutions to provide financial products to gig workers.” Many self-employed workers are suffering greatly as a result of this; they are experiencing high rates of financial exclusion and being turned down for financial goods even though they meet the requirements for affordability.

“Bridging the gap caused by this data disconnect is vital to avoid excluding a growing market of gig workers.” Financial institutions need to figure out how to get access to more data, such as substantiated information on an employee’s earnings, employment situation, and activities.

“Taking a comprehensive approach like this will guarantee that credit evaluations take into consideration the ability of gig workers to repay debts in addition to financial transactions. The last frontier of open finance is this.

Financial institutions’ exclusion is just one of the many difficulties gig workers have. According to the data, 86% of gig workers took on at least two additional jobs over the course of the previous year in order to make ends meet during the cost-of-living issue.

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