Font size:
Print
Banks, Fintechs roll out the Red Carpet for Creator Economy
Context:
India’s banks and fintechs, including HDFC Bank, Razorpay, and Wyld, are offering tailored banking solutions, such as specialised accounts, loans, and cashback cards, to social media influencers with irregular incomes and limited credit histories.
Creator Economy:
- The Creator Economy is a model where influencers use digital platforms like YouTube, Instagram, TikTok, and blogs to create content, engage with audiences, and monetize their work.
- Creators earn through ad revenue, sponsorships, merchandise sales, digital subscriptions, donations, and crowdfunding.
- India’s influencer industry is projected to grow from ₹2,344 crore in 2024 to ₹3,375 crore by 2026, highlighting its increasing market potential.
- About 12% of creators earn between ₹1-10 lakh annually, and 86% expect their income to increase by over 10% in the next two years.
Driving Forces of the Creator Economy:
- Content Monetization: Platforms like YouTube provide creators with tools to easily monetise their work.
- Empowerment of Creators: Independent creators use accessible tools to produce content, bypassing traditional oversight.
- Audience Connection: Direct engagement with audiences allows creators to tailor content and drive product sales, benefiting both creators and brands.
- Social Media Growth: With 5.17 billion global social media users, this number is projected to grow to 5.42 billion by 2025, fueling the creator economy’s expansion.
Steps taken by Banks and Fintech to promote Creators Economy:
- HDFC Bank’s Giga Initiative: HDFC Bank has partnered with various fintechs, as well as its insurance and asset management arms, to launch Giga, which targets freelancers and content creators as part of its initiative.
- The Giga program offers a variety of financial services, including specialised savings and current accounts, debit and credit cards, health insurance, flexible investment options, and retail asset products such as business loans and gold.
- Razorpay helps creators manage taxation and payments, ensuring ease of business and offering tools for compliant invoicing to build trust with brands.
- Wyld exclusively serves influencers, offering prepaid co-branded cards with cashbacks from partner brands, targeting creators with 1,000+ followers.
Benefits and Opportunities in the Creator Economy
- Flexibility and Independence for Creators
- Global Reach and Audience Engagement
- Diversification of Income Streams
- Empowerment of Niche Communities and Voices
Challenges and Considerations
- Competition and Saturation in the Creator Economy
- Platform Dependence and Algorithm Changes: Creators relying on platforms like YouTube and TikTok face risks from algorithm changes and policy shifts, which can impact content visibility and monetization.
- Building and Maintaining a Loyal Audience
- Balancing Creativity with Commercial Success
