Gig Economy

UK FinTechs Team To Help Self-Employed Workers Amid COVID-19

UK FinTechs Team To Help Self-Employed Workers

U.K.-based FinTechs have banded together to help self-employed workers prove their income so they can be eligible for financial support, according to a report.

The founder of FinTech 11:FS proposed that open banking technology could be used to certify lost income, and the founders of Fronted and Credit Kudos then joined him in coming up with a solution.

Soon, many others were also working on what they termed “Covid Credit.”

“Like many, we saw a challenge for non-salaried workers who are currently ineligible for government relief,” said Fronted Co-founder Jamie Campbell. “By using open banking, we have been able to quickly develop a simple process that allows non-salaried workers to generate a proof statement [that] details their past income and the impact of COVID-19.”

The group says that for people who are self-employed, authenticating their income is much more difficult than for salaried employees, and they recommend using open banking to analyze income.

“Using the application, applicants answer a few simple questions relating to their legal status and the impact of COVID-19 on their income,” Campbell said. “The application processes this information and creates a unique link that (in time) can be shared with the appropriate government body in order to prove loss of income.”

Covid Credit is a Python web application that runs on Google Cloud. It uses the Credit Kudos API and amalgamates data from bank accounts using pattern recognition algorithms.

“We believe Covid Credit can provide a crucial piece of the puzzle in identifying and validating the needs of freelancers and non-salaried workers affected by COVID-19,” Campbell said. “In practice, this might help extend the reach of furloughed worker relief (part of the government’s package for full-time workers) to include self-employed workers, though this is just a hypothesis. We plan to present the finished solution to key stakeholders this week and to support the potential rollout in the coming days.”

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NEW PYMNTS STUDY: LEVERAGING THE DIGITAL BANKING SHIFT – SEPTEMBER 2020  

The September 2020 Leveraging The Digital Banking Shift Study, PYMNTS examines consumers’ growing use of online and mobile tools to open and manage accounts as well as the factors that are paramount in building and maintaining trust in the current economic environment. The report is based on a survey of nearly 2,200 account-holding U.S. consumers.

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