Why Do We Need a New Banking Ecosystem for Gig Economy Workers?

Published on Aug 23, 2023

The emergence of the gig economy in India represents a profound shift in the nation’s workforce. Unlike traditional employment, where workers receive consistent salaries and benefits, gig workers engage in temporary, flexible jobs. According to a report by the Boston Consulting Group and Michael & Susan Dell Foundation, gig workers constitute nearly 90 million in urban India and have shown consistent growth.

India’s gig economy is burgeoning, with an estimated workforce of 15-20 million workers. It’s a space where innovation thrives but is often juxtaposed with financial challenges, especially concerning banking facilities.

Gig Economy Banking is a critical aspect that requires attention, given the unique financial challenges faced by these workers. This blog post explores the banking needs of India’s gig economy, examining the issues and proposing solutions to bridge the gap with salaried employees.

Gig Economy Workforce: Solopreneurs and LLPs

Solopreneurs are self-reliant entrepreneurs operating without a traditional team. Examples include independent consultants, artists, or online retailers. Limited Liability Partnerships (LLPs) on the other hand combine features of partnerships and corporations and are prevalent among small to medium businesses in legal, architectural, and tech sectors. Although they contribute a lot to the economy, the banking facilities at their disposal are lackluster and inefficient. Let’s analyze their pain points in comparison with salaried employees and established businesses respectively.

For Solopreneurs

Access to Credit: While salaried employees usually have easier access to credit based on stable income proofs, only 23% of solopreneurs have access to formal credit systems.

Minimum Balance Requirements: Salaried accounts often come with low or no minimum balance requirements. In contrast, solopreneurs face higher requirements, limiting their banking options.

Interest Rates and Loan Terms: Higher interest rates and stringent loan terms are common for solopreneurs due to perceived risks.

For LLPs

Regulatory Compliance: Unlike larger registered businesses, LLPs face complex and cumbersome regulatory compliances, impacting 40% of LLPs in India in 2018.

Credit Facilities: Even though LLPs contribute significantly to the economy, banks are often hesitant to extend the same credit facilities offered to larger corporations.

Business Banking Features: LLPs often lack access to customized business banking features that are usually available to registered businesses, such as specialized loans, overdrafts, or merchant services.

A 2020 study by the Indian government revealed a significant gap in banking facilities offered to the gig workforce compared to traditional salaried employees and registered businesses:

Low Minimum Balance Savings Account: 75% of salaried employees have access to this, compared to only 28% of solopreneurs.
Credit Facilities: 60% of registered businesses avail themselves of credit lines, while only 15% of LLPs have similar access.

This disparity emphasizes the need for reformation in the banking sector to cater to the unique needs of solopreneurs and LLPs, who are equally vital in contributing to the economic fabric.

Contribution to the Economy

Both Solopreneurs and LLPs play a vital role in India’s economic landscape.

Often innovators and trendsetters, solopreneurs contribute significantly to various sectors like IT, design, and consulting. In 2019, they were responsible for 20% of India’s freelance revenue, translating to nearly $1 billion.

Thereafter, acting as a flexible structure for entrepreneurship, LLPs allow businesses to thrive without the constraints of a corporate framework. They play a vital role in the growth of small and medium enterprises (SMEs), comprising over 10% of India’s GDP.

Need to Address Banking Pain Points

The banking challenges faced by Solopreneurs and LLPs are not mere inconveniences but barriers that can stunt economic growth.

Access to Finance: Lack of tailored financial products leads to a restricted flow of credit, hindering growth opportunities. According to RBI’s report, only 10% of small businesses in India have access to formal credit channels.

Modern Banking Facilities: The absence of personalized banking solutions equivalent to those offered to salaried employees and larger corporations adds to operational difficulties.

Regulatory Hurdles: Complex compliances can deter LLPs from seeking formal banking relationships, pushing them towards informal lending sources.

Initiatives and Solutions

Despite several initiatives aimed at addressing the banking challenges of solopreneurs and LLPs, the current solutions are still falling short. Government schemes like MUDRA and bespoke banking products from financial institutions have made some progress but haven’t completely bridged the gap.

The existing banking paradigm fails to recognize the unique financial needs of the nearly 90 million gig workers in India, who constitute a significant force in the economy. Traditional banking models are largely incompatible with the flexible and temporary nature of gig work, leading to hurdles in credit access, regulatory compliance, and modern banking facilities.

The urgency to build a new banking ecosystem for gig workers is underscored by their substantial contribution to the economy and their growing presence in the workforce. This ecosystem should include:

Tailored Financial Products: Design banking products specifically for gig workers, considering their inconsistent income streams and unique operational needs.
Flexible Regulatory Framework: Streamline regulations to facilitate easier compliance for smaller entities, thus making formal credit more accessible.
Technology Integration: Utilize fintech solutions to provide seamless digital banking experiences tailored to the needs of gig workers.
Collaboration with Gig Platforms: Partner with platforms that engage gig workers to develop customized financial services that align with their working patterns.

What Role Does Tech Companies Play Here?

Tech companies can be the bridge that connects traditional banking to the unique needs of the gig economy. Since banking is largely digitized these days, the new ecosystem for gig workers will be on the Internet. There comes the need to integrate the latest technologies and solutions to provide the best customer experience.

Mantra Labs developed ezetap’s Universal Payment Solution is a vivid example in this case. It is a secure interface that facilitates digital transactions across various touchpoints. This innovation reflects how tech solutions can tailor banking systems to suit the diverse needs of the gig workforce.

The growth of Solopreneurs and LLPs in India is a testament to the country’s entrepreneurial spirit. However, their unique banking challenges call for targeted solutions that understand and cater to their specific needs. With a combination of government initiatives, bespoke banking products, and technological innovation, there’s a pathway to creating a more inclusive financial ecosystem.

The insurance industry thrives on relationships—but it can only scale through efficiency, precision, and timely distribution. While much of the digital transformation buzz has focused on customer-facing portals, the real transformation is happening in the field, where modern sales apps are quietly driving a smarter, faster, and more empowered agent network.

Let’s explore how mobile-first sales enablement platforms are reshaping insurance sales across prospecting, onboarding, servicing, renewals, and growth.

The Insurance Agent Needs More Than a CRM

Today’s insurance agent is not just a policy seller—they’re also a financial advisor, data gatherer, service representative, and the face of the brand. Yet many still rely on paper forms, disconnected tools, and manual processes.

That’s where intelligent sales apps come in—not just to digitize, but to optimize, personalize, and future-proof the entire agent journey.

Real-World Use Cases: What Smart Sales Apps Are Solving

Across the insurance value chain, sales agent apps have evolved into full-service platforms—streamlining operations, boosting conversions, and empowering agents in the field. These tools aren’t optional anymore, they’re critical to how modern insurers perform. Here’s how leading insurers are empowering their agents through technology:

1. Intelligent Prospecting & Lead Management

Sales apps now empower agents to:

Prioritize leads using filters like policy type, value, or geography
Schedule follow-ups with integrated agent calendars
Utilize locators to look for nearby branch offices or partner physicians
Register and service new leads directly from mobile devices

Agents spend significantly less time navigating through disjointed systems or chasing down information. With quick access to prioritized leads, appointment scheduling, and location tools—all in one app—they can focus more on meaningful customer interactions and closing sales, rather than administrative overhead.

2. Seamless Policy Servicing, Renewals & Claims

Sales apps centralize post-sale activities such as:

Tracking policy status, premium due date, and claims progress
Sending renewal reminders, greetings, and policy alerts in real-time
Accessing digital sales journeys and pre-filled forms.
Policy comparison, calculating premiums, and submitting documents digitally
Registering and monitoring customer complaints through the app itself

Customers receive a consistent and seamless experience across touchpoints—whether online, in-person, or via mobile. With digital forms, real-time policy updates, and instant access to servicing tools, agents can handle post-sale tasks like renewals and claims faster, without paperwork delays—leading to improved satisfaction and higher retention.

3. Remote Sales using Assisted Tools

Using smart tools, agents can:

Securely co-browse documents with customers through proposals
Share product visualizations in real time
Complete eKYC and onboarding remotely.

Agents can conduct secure, interactive consultations from anywhere—sharing proposals, visual aids, and completing eKYC remotely. This not only expands their reach to customers in digital-first or geographically dispersed markets, but also builds greater trust through real-time engagement, clear communication, and a personalized advisory experience—all without needing a physical presence.

4. Real-Time Training, Performance & Compliance Monitoring

Modern insurance apps provide:

On-demand access to training material
Commission dashboards and incentive monitoring
Performance reporting with actionable insights

Field agents gain access to real-time performance insights, training modules, and incentive tracking—directly within the app. This empowers them to upskill on the go, stay motivated through transparent goal-setting, and make informed decisions that align with overall business KPIs. The result is a more agile, knowledgeable, and performance-driven sales force.

5. End-to-End Sales Execution—Even Offline

Advanced insurance apps support:

Full application submission, from prospect to payment
Offline functionality in low-connectivity zones
Real-time needs analysis, quote generation, and e-signatures
Multi-login access with secure OTP-based authentication

Even in low-connectivity or remote Tier 2 and 3 markets, agents can operate at full capacity—thanks to offline capabilities, secure authentication, and end-to-end sales execution tools. This ensures uninterrupted productivity, faster policy issuance, and adherence to compliance standards, regardless of location or network availability.

6. AI-Powered Personalization for Health-Linked Products

Some forward-thinking insurers are combining AI with health platforms to:

Import real-time health data from fitness trackers or health apps
Offer hyper-personalized insurance suggestions based on lifestyle
Enable field agents to tailor recommendations with more context

By integrating real-time health data from fitness trackers and wellness apps, insurers can offer hyper-personalized, preventive insurance products tailored to individual lifestyles. This empowers agents to move beyond transactional selling—becoming trusted advisors who recommend coverage based on customers’ health habits, life stages, and future needs, ultimately deepening engagement and improving long-term retention.

The Mantra Labs Advantage: Turning Strategy into Scalable Execution

We help insurers go beyond surface-level digitization to build intelligent, mobile-first ecosystems that optimize agent efficiency and customer engagement—backed by real-world impact.

Seamless Sales Enablement for Travel Insurance

We partnered with a leading travel insurance provider to develop a high-performance agent workflow platform featuring:

Secure Logins: Instant credential-based access without sign-up friction
Real-Time Performance Dashboards: At-a-glance insights into daily/monthly targets, policy issuance, and collections
Frictionless Policy Issuance: Complete issuance post-payment and document verification
OCR Integration: Auto-filled customer details directly from passport scans, minimizing errors and speeding up onboarding

This mobile-first solution empowered agents to close policies faster with significantly reduced paperwork and data entry time—improving agent productivity by 2x and enabling sales at scale.

Engagement + Analytics Transformation for Health Insurance

For one of India’s leading health insurers, we helped implement a full-funnel engagement and analytics stack:

User Journey Intelligence: Replaced legacy systems to track granular app behavior—policy purchases, renewals, claims, discounts, and drop-offs. Enabled real-time behavioral segmentation and personalized push/email notifications.
Gamified Wellness with Fitness Tracking: Added gamified fitness engagement, with rewards based on step counts and interactive nutrition quizzes—driving repeat app visits and user loyalty.
Attribution Tracking: Trace the exact source of traffic—whether it’s a paid campaign, referral program, or organic source—adding a layer of precision to marketing ROI.
Analytics: Integrated analytics to identify user interest segments. This allowed for hyper-targeted email and in-app notifications that aligned perfectly with user intent, driving both relevance and response rates.

Whether you’re digitizing field sales, gamifying customer wellness, or fine-tuning your marketing engine, Mantra Labs brings the technology depth, insurance expertise, and user-first design to turn strategy into scalable execution.

If you’re ready to modernize your agent network – Get in touch with us to explore how we can build intelligent, mobile-first tools tailored to your distribution strategy. Just remember, the best sales apps aren’t just tools, they’re growth engines; and field sales success isn’t about more apps. It’s about the right workflows, in the right hands, at the right time.

Why Do We Need a New Banking Ecosystem for Gig Economy Workers?