/ Credit for Platform-Based Gig Workers / Define
Insights
Insight 1
Distributed-Source of Income:
Platform-based gig workers usually possess a distributed source of revenue/income as they are typically part of more than one gig platform.
Insight 2
Income Variability:
Gig workers experience significant income fluctuations, which impact their ability to plan financially, save, and invest.
Insight 3
Credit as a Financial Lifeline:
Gig workers rely on credit for short-term liquidity to manage cash flow gaps and big-ticket purchases to advance within the gig economy. Limited savings often push them to seek quick financial relief, while asset upgrades—like bikes or cars—help boost earning potential.
Insight 4
Dynamic nature of employment :
The dynamic employer-employee relationship in the gig economy, coupled with little to no presence in credit bureaus, creates significant barriers for platform-based workers to access formal credit.
Insight 5
Flexibility in Repayments:
Platform-based gig workers prefer flexible credit repayment options, such as equated weekly installments (EWI) over traditional monthly EMIs, due to the variability in their income. This flexibility aligns better with their fluctuating earnings, and will allow them to manage repayments more effectively
