Nsave, a financial technology (fintech) company based in the city of Geneva, Switzerland, is revolutionizing banking accessibility for individuals in conflict-affected countries, those with unstable banking systems, and those facing high rates of inflation. Recently, the company raised an impressive $4 million in seed funding, co-led by renowned venture capital firms Sequoia Capital and TQ Ventures, with additional support from Y Combinator, SV Angel, and FONGIT (a prominent organization in the State of Geneva that promotes tech startups).
The inception of nsave in 2021 was driven by the personal experiences of co-founders Amer Baroudi and Abdallah AbuHashem. In a conversation with TechCrunch, Baroudi shared that he bore witness to his family losing all of their savings due to currency devaluation and the inability to open bank accounts in foreign countries after fleeing their home in war-torn Syria many years ago, solely due to being perceived as too high-risk.
In the past, offshore banking has only been accessible to a select few, often only those with considerable wealth or well-established connections. However, nsave is on a mission to democratize access to offshore banking for everyone else.
“Our product is quite simple at the moment: a secure account abroad where individuals can keep their savings in popular currencies such as the US dollar, euro, or pound, and withdraw as needed,” Baroudi explained. He also noted that nsave has partnered with reputable and regulated banking institutions to provide this service.
To begin using the service, users must register through the app and complete an onboarding process that includes a thorough risk assessment, as mandated by strict banking regulations.
“What is truly exciting is our approach to solving this problem. We want to reimagine how we assess risk, and most importantly, we need to establish proper safeguards to evaluate real risks. Where someone comes from should not define their level of risk,” Baroudi stated.
Based on their risk score, users may be required to answer additional questions or provide further documentation as part of enhanced due diligence measures. Much of this process is automated and occurs dynamically.
After the onboarding process, nsave utilizes its proprietary transaction monitoring tool to ensure compliance with Swiss banking regulations, including laws related to anti-money laundering and counter-terrorism financing.
According to Baroudi, who, along with AbuHashem, is a former Rhodes scholar in the UK, they chose to establish nsave in Switzerland due to the country’s strong focus on promoting innovation, which includes a specialized licensing system for fintech companies. This license enables fintech startups to operate as financial intermediaries while working towards becoming fully-regulated banks.
He affirmed that the company is still in the early stages of product development but remains committed to prioritizing savings and wealth management services for retail banking customers. As they continue to listen and meet the needs of their target audience, nsave remains dedicated to its core mission of providing secure banking options for those traditionally excluded from mainstream financial services.
“We understand firsthand the impact and challenges of financial exclusion…that is why we are building a platform to help individuals in struggling economies safeguard their savings and grow their wealth,” Baroudi stated passionately.
The company’s target demographic includes millions of people in countries facing significant economic struggles. For example, high inflation rates in Lebanon have led to a 90% devaluation of their currency, making it increasingly difficult for individuals to access their savings as banks impose strict withdrawal limitations. Similarly, in countries like Sudan, where long-standing conflicts and political unrest have caused chaos and turmoil, people with deposits in local banks often face immense barriers when attempting to access their own funds.
Recognizing the immense challenge of developing a global product that complies with stringent financial regulations, not to mention forming partnerships with established banks, the nsave team has proven their ability to overcome obstacles and accomplish their mission.
“Now that nsave is up and running, there is finally a reputable option for individuals to protect themselves from the rampant inflation plaguing struggling economies. This platform offers secure and stable offshore accounts to those who need them the most,” stated George Robson, a Partner at Sequoia Capital.
