When Moven users pay with their phone, they get a record of their expenses broken down by category, which can often surprise them, and offer them a spur to change their spending habits. For example, at a Dubai credit card conference Brett King, co-founder of Moven, said he estimated his monthly taxi costs in New York were around $70 — he was surprised when his own app showed they were more than $300.
Moven figures that freelancers might find similar bursts of enlightenment, and the company and the Union recognize this freelance/gig way of working is a growing segment of the economy.
“Absolutely freelancers need help,” said Moven co-founder and president Alex Sion. “They are the most underserved customer segment perhaps in the entire banking world. The fact is that the gig economy is gaining millions and millions of members from all over the place. Some estimate 54 million people are in the gig economy [in the United States]. It’s a massive, massive opportunity, and we don’t think banks are looking at it.”
Actually, he explained, bankers who have looked at freelancers hurriedly look away.
“It starts with lifestyles. If you think about how freelancers and giggers (is that a word, really?) live, it begins with banks saying come into the branch. But they say, I work from home.” (Moven users sign up for an account from their smartphones) “From there it cascades. When you think about how banks look at customers and their profiles to put them into products, they have a problem understanding freelancers who have no steady job or steady employer, volatile income streams, but often they are highly educated and well paid.”
Perhaps sporadically well paid.
“From a bank perspective, the population looks like a risky, almost illegal, customer. But the people freelancing, from their perspective, are optimistic, gainfully employed, upwardly mobile and confident about where they are headed. There’s a massive disconnect between how banks view this group and how they view themselves.”
Moven, somewhat by accident, discovered that it had a number of freelancers among its clients and then decided to further explore how it could attract more. The company has been in discussions with the Freelancers Union for several months designing a joint program.
“Freelancers desperately need the ability to manage money in a forward fashion that is low hassle and can help them manage their spending behavior and cash flow,” said Sion.
Freelancers have complex personal/business finances that don’t work well with traditional budgeting apps.
“We are a bit different because we are not about budgeting but about being mindful of your spending habits. Moven is organized around the concept that you are going to spend, so spend but be mindful. When you buy a coffee, recognize the context in your broader spending.”
The Freelancers Union liked Moven’s ability to tag expenses and categorize them on the fly, so when a freelancer is on the move and buying lunch that may be with a client she can record it as a business expense on the Moven app.
“I don’t work for a company, I don’t have an expense account, so I have to be organized with my spending, but it is a lot of work,” Sion said describing the freelancer's life.
Moven said the partnership will provide support, education and tools to the rising independent workforce in an effort to positively impact their financial well-being through free monthly events.
“The broader picture, and the heart of our collaboration, will be researching the deeper need for a fundamental suite of products for the gig economy,” Sion added. “Freelancers make up a unique segment that is demonstrating behaviors and needs that are super atypical for a traditional bank. Banks have always in some ways struggled with micro businesses, and this is the ultimate micro business — one person.”
Moven last month announced partnerships with Payoff and CommonBond, companies that offer personal loans to help people pay off credit card and student debt at a lower rate. Moven also recently announced new partnerships with on-demand services Blue Apron, Handy, Arcade and Cups which offer Moven customers deals and monthly savings along with cash back for paying for these services through Moven.
“Spending awareness is especially acute for people in the gig economy with multiple streams of income, in and out of business and personal spending," Sion added. "Their lives are project-based and personal finances are connected to that. We hear from our customers and from the Freelancers Union that the ability to manage their lives in mobile or digital tools is a necessity.”
The Freelancers Union, which is free to join, says it is bringing freelancers together to build smarter solutions to health care, retirement, wage security, and other broken systems. It is also active in advocating for laws to protect freelancers who are not covered by existing legislation written for another era.
“As part of our mission to help freelancers achieve a sustainable independent lifestyle, we're thrilled to partner with Moven”, said Sara Horowitz, founder and executive director of Freelancers Union. “Freelancers Union is committed to serving our 300,000 members by helping freelancers access the tools needed to build thriving businesses.”
