No products in the cart.
- Latest
- Trending
ADVERTISEMENT
The Bank of England now predicts that inflation could reach 11% this year, and the cost of living crisis has cast a shadow over all income groups.
Access to cross-border financial solutions is more important than ever
However, low-income households, including many migrant workers and their families, find the impact disproportionate.
This couldn’t happen at the worst time. The UK is addressing a serious labor shortage after about 1.3 million foreign workers fled the UK during the height of the Covid-19 pandemic. This was followed by a “major resignation,” with millions of workers resigning all at once in search of a new career path. The sectors from hospitality and retail to food and beverage, manufacturing, construction and transportation have already been dysfunctional due to repeated blockades, but all have been hit hard by the difficulty of finding enough staff.
And sadly, the important role of migrants in supporting our economy is still overlooked. Instead, many return to the negative view of immigrants as a barrier to economic depletion and local employment. However, with the right support (enable immigrants to actively participate in economic activities through financial services that meet their own cross-border needs), they are well suited to support their families in their hometowns. Not only is it in a good position, but it also has a positive impact on the economy of the host country.
Immigrants work by flowing towards industries that have a relative need for workers, perhaps one of the most affected sectors of the current inflation storm, such as the supply chain sector. Helps to strengthen.And they do this while spending their income locally When It contributes to the economy of my hometown. But to do this effectively, you need the right financial tools. Cross-border banking is traditionally a very expensive process, but even higher if the pound is weak.
Unfortunately, this trend still works for migrant workers. Inflation has eroded the value of remittances and the ability of migrants to support their families and loved ones. This is damaging both the host country and the home country, meaning a depleted pool of resources and workers.
As a result, access to cross-border financial solutions is more important than ever. Fintech solutions mean that once complex and expensive processes can be completed with a finger swipe. Immigrant workers who may lack the financial knowledge needed to use traditional banking products will have time and time to access their debit cards, local settlement accounts (IBAN) and insurance products in their native language. You can save the money you earned hard.
As the issue of inflation only gets worse, we need to change our perceptions so that migrant workers are more widely aware of the value they bring to the economy. FinTech plays an important role in helping people without bank accounts play a more active role in the economy. The fintech industry not only boosts domestic and international economic activity, but also helps migrants and other underserved people manage their finances better and plan for the future. can do.
About the author
Guy Kashtan is the co-founder and CEO of Rewire, a cross-border financial services platform.
Prior to Rewire, Guy worked at Microsoft as a program manager for the Cortana team.
