Ian Shepherd, Contributor
2025-07-02 19:04:00
www.forbes.com
Young female vlogger recording video tutorial session of finance and economy
Despite millions of followers, lucrative brand deals and thriving content-driven businesses, many creators still hear the same answer from traditional banks: “No.”
The creator economy, valued at $250 billion today, is projected by Goldman Sachs to grow to $480 billion by 2027. Yet most financial institutions still assess risk through outdated lenses – W2 forms, consistent pay checks and long credit histories. This often leaves even high-earning creators struggling to access essential banking services.
Understanding the Creator Business Model
Today’s creators operate as entrepreneurs, running media properties, launching products and generating income across diverse streams. But traditional banks often lack frameworks to assess this kind of business activity. Terms like CPMs, brand integrations, or affiliate marketing are foreign to many underwriters.
The gap is conceptual. Banks designed for traditional employment structures rarely serve the needs of content entrepreneurs whose earnings fluctuate and diversify quickly.
Creator-Centric Banking
Last month, Karat Financial launched Karat Banking, a business banking platform for creators. Features include FDIC-insured accounts, tax planning tools, up to 3.00% APY, and service discounts with companies like Epidemic Sound and Spotter.
In Alexandra Botez’s case, despite her sizable digital audience and income, she was rejected twice for a business credit card. “Karat approved me for a business credit card when other banks rejected me twice despite being a creator with millions of followers,” she said. “They actually understand what I do as a business and I’m excited for their new business banking launch.”
Lindsey Lugrin, co-founder of FYPM, shared a similar experience with traditional banking limitations. “I hate traditional banks. They have no understanding of what I do so I signed up for Karat business banking and I’m already getting more in yield on my checking account than I did before,” she said.
Underwriting That Reflects Reality
Karat’s model aims to rethink creditworthiness by incorporating creator-specific metrics like audience size, engagement and revenue consistency. This strategy has supported over $1.5 billion in credit and advances to creators such as Wendover Productions and Nick DiGiovanni.
Other financial providers see similar patterns. Alex Kaplan of Breeze noted: “Creators have gotten a little bit smarter and a lot more sophisticated on what they look for… Before it was like, you can’t use the word loan. Now creators get it.” He added, “If no one’s telling you what it costs, it costs a lot.”
Why Timing Matters
This shift toward financial products tailored for creators coincides with broader changes in digital business. Entrepreneurs like Nadya Okamoto and Mino Lee are building companies from the ground up using content as their primary growth engine.
Yet many still juggle piecemeal financial solutions. Karat’s approach, while still evolving, aims to consolidate banking, bookkeeping and tax tools under one roof.
The Future of Creator Finance
As the boundaries between creator and entrepreneur blur, the need for financial services that accommodate non-traditional business models is only growing.
Liz Zavoyskiy of MEP Capital sees the opportunity: “There’s an estimated market size of 12,000 creators on YouTube, making $500,000 or more per year”.
She added, “We’ve heard a lot of myths and misconceptions… that it’s volatile, that it’s low quality IP… But really, if you find the right types of content, it can, in fact, be very high quality and very investable.”
While Karat’s offering is just one response to this structural gap, it underscores a larger point: creators need financial systems that reflect their realities. Whether or not any single solution becomes dominant, the path forward will require more banks and more investors to understand creators as serious business operators.
Takeaways for Creators
- Know Your Worth: Traditional financial systems may not reflect your true business value, especially if your income comes from multiple digital sources. Track and consolidate your financial performance data to present a complete picture.
- Be Strategic with Financing: Not all funding is equal. Consider the terms, repayment models and whether your lender understands the creator business model.
- Build Infrastructure Early: Sustainable creator businesses require more than content. Invest in operations like bookkeeping, business banking and tax planning, so your business can scale smoothly.
- Seek Aligned Partners: Whether you’re working with a bank, platform, or investor, prioritize partners who understand the nuances of your work and support long-term growth.
- Diversify Revenue Streams: As many creator-focused financiers point out, top earners typically have five or more income sources. Expanding beyond AdSense or sponsorships can help you access better financing and stability.
Enhance your driving experience with the P12 Pro 4K Mirror Dash Cam Smart Driving Assistant, featuring Front and Rear Cameras, Voice Control, Night Vision, and Parking Monitoring. With a 4.3/5-star rating from 2,070 reviews and over 1,000 units sold in the past month, it’s a top-rated choice for drivers. The dash cam comes with a 32GB Memory Card included, making it ready to use out of the box. Available now for just $119.99, plus a $20 coupon at checkout. Don’t miss out on this smart driving essential from Amazon!
Help Power Techcratic’s Future – Scan To Support
If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.
As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!
BITCOIN bc1qlszw7elx2qahjwvaryh0tkgg8y68enw30gpvge Scan the QR code with your crypto wallet app |
DOGECOIN D64GwvvYQxFXYyan3oQCrmWfidf6T3JpBA Scan the QR code with your crypto wallet app |
ETHEREUM 0xe9BC980DF3d985730dA827996B43E4A62CCBAA7a Scan the QR code with your crypto wallet app |
Please read the Privacy and Security Disclaimer on how Techcratic handles your support.
Disclaimer: As an Amazon Associate, Techcratic may earn from qualifying purchases.