On The Horizon: Financial Services For Creators

In a world where content creators are increasing in number every day—over 50 million strong and climbing—logistics around this growing career are gaining more and more attention. How does a creator acquire funding? How do they find a bank that will issue them a credit line for their business? There are many questions about how a creator middle class can successfully emerge with all the benefits that one may anticipate from a 9-to-5 job. 

The good news is that new financial tools like special bank accounts, credit cards, invoicing services, and more are being developed specifically with creators in mind. Creator endeavors are being supported by financial institutions now more than ever, with more tools being released to enable these small business-like entrepreneurs.


Going Beyond Banking

Could creators enroll in banking and acquire charge cards to save for retirement and purchase health insurance like the rest of us? They can and they do. And with the opportunity for financial companies to diversify and offer incentives for creators, the economy is poised for a modernized financial service to emerge.

But there’s another layer to consider. As content creators drive their careers and pursue other ventures, they may encounter funding challenges. Since many creators typically have no set monthly income and several income streams, capital access can be limited as traditional banks rely on “outdated metrics” that limit creators, even though over 3.2 million creators earn six-figure incomes each year. Business loans or venture capital prove to be a challenge for creators; they’re either forced to pay high interest rates or give up company equity. 

The world of finance is improving for influencers as better tools and opportunities are being created specifically for them

We’re already seeing proof in the form of fintech companies, a term that is the portmanteau (or blend) of financial and technology services. This growing sector is expected to hit a marketing value of over $300 billion by 2026

Some notable fintech startups are supporting creators via a variety of services including: 

    • Spotter, which funds YouTube creators upfront in exchange for back catalog royalties 
    • Karat, which offers a charge card for content creators and influencers along with financial services
    • Willa, which provides invoicing services for creators
    • XPO, which puts online banking into the creator’s hands. 


Broadening The Financial Infrastructure

These new services help put creators on an upgraded playing field as business owners and entrepreneurs. Not only are startups helping creators, but more VC funds are emerging to support them. Atelier Ventures, launched by Li Jin in February 2021, is a $13 million fund to invest specifically in the passion economy that creators are driving. And many other investors are focusing on influencer endeavors too.

The future of creator and fintech could flourish beyond products into a broader “financial infrastructure.” Karat Financial has pointed out that their ultimate goal goes beyond lines of credit, but rather aspires to help creators launch their businesses, assist them with loans, and even handle their taxes. 


Where We’re Going

And with creator unions developing more to help influencers stand for fair compensation, we wouldn’t be surprised if unions and fintech joined forces to generate even more resources. Creators could see retirement accounts just for them, or even health insurance plans by national carriers made with them in mind. The future of accessible services is well within reach, and we’re excited to see where it goes. 


Key points

    • The growing fintech industry is paving the way for creator-driven financial services.
    • Creators who may struggle to secure capital for their business endeavors will see opportunity in new companies who want to fund their vision.
    • We anticipate more services beyond banking and funding to rise along with the emerging creator middle class and increased creator unionization.
    • For more on fintech and our 2022 predictions, check out our predictions guide and webinar.