Fintech reveals that Brexit induced fall in pound’s value hits migrant workers in UK
It is not just EU citizens in the UK and UK citizens that are suffering from the uncertainty of Brexit, as non EU immigrants in the UK are sending less to families in home countries as the value of the pound falls.
Research carried out by cross border payments fintech InstaRem, which I recently interviewed, found that 44% of migrants in the UK are sending less money home as a result of the pounds diminishing value against other currencies.
The survey found that nearly half (48%) of money that is sent home is for food and healthcare for their families. They simply don’t get as much for their pound as a result of the economic uncertainty in the UK. It revealed that 36% now sacrifice a greater proportion of their income to continue to provide the same level of support they did for their families before.
To soften the blow InstaRem is even offering migrants in the UK and extra £50 on remittances worth 2000 or over.
The research was conducted in December by Censuswide with Non-UK nationals who have sent money abroad before.
Hardik Shah, a non-UK national that lives in the UK is a pre-sales solution architect. “When I first heard the EU referendum result I knew it would have a big impact on the money I send home to my parents in India, who rely on me to buy the basics they need,” he said “Since the EU referendum decision, I’ve had to send more money home, which is putting a real strain on my household budget – and regardless of what Brexit deal the UK gets, there’s seems to be no sign of this strain stopping any time soon.”
Roya Rahnejat, director at London fintech startup, Yobota said: “I don’t agree with Brexit, just from a business point of view. If you look at it economically, the decision just doesn’t make sense. In a way I feel like I’m being punished by a referendum that didn’t need to take place. My remittance values are being affected and this is making me think twice about sending money abroad, where previously I’ve never had an issue in doing so.”
Luke Santos, a teaching assistant in South London said he regularly sends money back to family members in South America for various occasions across the year. “But if the UK leaves the EU, it would leave me no choice but to stop remitting as often, and maybe full stop.”
InstaRem’s co-founder Prajit Nanu, said the Brexit decision goes much further than UK shores. “Hardworking migrants in the UK are suffering and so are their families over an uncontrollable situation. That’s why InstaReM wants to stand with migrants in the UK and their families around the world and help them take control of their overseas money transfers.”