California-based start-up Even is developing an app that will reduce financial stress by smoothing the irregular paychecks of hourly workers or freelancers, helping them to create a consistent income stream.
The app, also called Even, calculates a user's average pay and ensures that amount is in their bank account each month. Even is still in its testing phase and will launch publicly in 2016.
If it's been a good month and the user exceeds their Even salary, the excess is saved in a separate account. The user still receives the same salary if they don't reach their average monthly pay, as this is topped up from the surplus in their savings account or with interest-free credit from Even.
Even charges a set rate of $3 per week, rather than profiting from interest on loans, ensuring a level of transparency often missing from financial institutions. The service is backed by a "Make Things Right" guarantee, the first of its kind in the industry. It promises: "If trusting Even to help manage your money ever gets you in a bind, we will cover 110% of the costs of making things right. No questions asked."
Consumers will no longer tolerate hidden fees or poor service and it's vital to provide honest value – a key insight in our Wired Money 2015 event report. Considering that freelancers account for 34% of the US workforce and the number of digital nomads continues to rise, there is significant opportunity to provide this group with services suitable to their unpredictable lives.