Argyle, the trusted platform for employment records with worker consent, today announced that financial services platform company Moves Financial significantly increased customer engagement by using Argyle’s technology to create a simple, frictionless money application process for consumers. Moves Financial provides independent workers – like gig workers and freelancers – with easy-access financing solutions, including cash advances without credit checks. Unlike traditional banks that perceive these workers as high-risk, Moves is creating alternative financial services and opportunities tailored to this growing population, which has been negatively impacted by the COVID-19 pandemic. Moves deployed Argyle to integrate worker-permissioned, real-time employment data into its underwriting process as the primary indicator for making capital investment decisions. Moves evaluates the holistic, verified view of individuals’ employment data (that Argyle provides) to determine their cash advance amount. This prevents defaults and protects recipients from oversized cash advances that they are unable to afford.
“The growing population of gig workers lacks the benefits enjoyed by full-time employees, as well as a community that can support and advocate for them,” said Matt Spoke, CEO and founder of Moves Financial. “The nature of their job has made them more vulnerable to predatory lending. Argyle gives us full visibility into a gig worker’s entire financial health, enabling us to customize the right financial assistance so they can build their financial independence.”
There are more than 57 million gig workers in the U.S., accounting for 36% of all U.S. workers, and that number is expected to rise. Upwork and the Freelancers Union anticipate freelancers to make up the majority of the U.S. workforce by 2027. At the same time, the pandemic has deeply affected the gig economy. According to Statista Research, 52% of global gig workers lost jobs due to COVID-19, and another 26% had their hours decreased.
“Gig workers are more important to our society than ever. Many are on the frontlines of the pandemic delivering essential goods and services, but they are an afterthought in today’s on-demand economy,” said Shmulik Fishman, CEO and co-founder of Argyle. “The stops and starts of today’s uncertain economy add another layer of unpredictability as they try to live productive lives and support their families. We feel very strongly that they should have a fair opportunity to receive the financial help they deserve as contributing members of the workforce.”
Using Real-time Employment Data for a More Holistic Application Experience for Independent Workers
By replacing Plaid with Argyle at the beginning of the customer journey, Moves’ conversion rates have increased by three-fold. Before Moves implemented Argyle, establishing trust with users and demonstrating value early in the money application process posed a significant challenge. Applicants were required to log into their bank accounts through Plaid and were dropping out mid-stream, resulting in a high rate of incomplete profiles. Additionally, Plaid’s technology was unable to acquire real-time information and employment data from multiple sources, preventing Moves from having a comprehensive view of an individual’s financial health.
“There’s a factor of trust and comfort that crosses people’s minds when it comes to their bank account and entering sensitive login credentials – for many, it’s even more sensitive than logging into Google or Facebook,” Spoke added. “Gig economy workers are already accustomed to using gig accounts to log into third party products, so asking them to create a Moves profile on their mobile device was less of a behavioral change than requesting access to a bank account.”
Argyle gives Moves visibility into individuals’ historical employment information and up-to-date income to better assess risk for capital investment decisions and approve cash advances. Argyle seamlessly provides the complete set of data required for Moves to confirm consistency of income, which is critical for gig workers who frequently have more than one source of income.
“The average gig worker holds two to four jobs. In an emergency – for example, if their car breaks down – it may cost them their livelihood. It’s imperative that when they seek financial support in the form of cash advances or other products, their entire financial history is up-to-date and available to providers to make fair capital investment assessments. This will minimize predatory lending and get financial relief in workers’ hands faster so they can get back to making a living or invest in their future,” said Fishman.
To learn more about how Argyle empowers Moves Financial’s users, please visit https://argyle.com/newsroom/customers-movesfinancial.
Argyle is the first user-consent-based software gateway to employment data, helping people avoid situations where their personal information is sold or used without their consent or knowledge. With Argyle, any business can process income and work verifications, gain real-time transparency into earnings as well as view and update worker profile details. By removing the barriers between a worker, the companies they make money from, and the business they buy services and products from, Argyle has reimagined how employment data can be used.