Nsave gets $4M to help people from unstable economies open offshore accounts

Nsave, a Geneva-based fintech that provides Swiss banking services to people in countries at war, with unstable banking sectors or facing high inflation, has raised $4 million in seed funding. The round was co-led by Sequoia Capital and TQ Ventures, with participation from Y Combinator, SV Angel and FONGIT (the canton of Geneva’s organization that supports technology startups).

Amer Baroudi and Abdallah AbuHashem co-founded nsave in 2021 based on life experiences. Barudi told TechCrunch that he has witnessed his family lose their life savings due to currency depreciation and the inability to open bank accounts abroad as they fled the war in Syria a few years ago because they were deemed too risky.

Offshore banking has always been open to only a few people, usually the wealthy or those with good internet connections, he said, adding that nsave was designed to make offshore banking accessible to everyone else.

“So far, it’s a very simple product: a trusted overseas account where you can temporarily hold your savings in hard currency like dollars, euros or pounds and access it when needed,” Baroudi told TechCrunch, adding The fintech company has partnered with regulated banking institutions to offer this service.

To access the app, users need to register on the app and go through what Barudi said is an onboarding journey, which includes a risk assessment based on the strict banking regulations they need to comply with.

“What’s really exciting is how we solve this problem. We want to rethink how we do risk assessment and actually put safeguards in place to assess real risk, because where you come from is not actually a risk factor,” He said.

“Then based on the risk score, you may be prompted with different questions or enhanced due diligence mechanisms. We may ask you to provide additional documentation. A lot of this is automated and happens dynamically.”
Once onboarded, the fintech uses its proprietary monitoring transaction tools to ensure compliance with Swiss banking regulations, including anti-money laundering and counter-terrorism financing laws.

Barudi said the pair, who were former Rhodes Scholars in the UK, chose Switzerland because the European country has made great strides in promoting innovation, including a fintech licensing system. The license allows fintech companies to act as financial intermediaries as they work to become fully regulated banks.

He said the fintech company is in the early stages of product development but will continue to redouble its efforts on savings and wealth in retail banking, listen and work hard to meet the needs of its target customers, and stay true to its mission of building safe banking for the economically excluded. people.

“We understand what it means to be financially excluded, and the impact, struggles and challenges of this issue… That’s why we’re building a platform where people from financially disadvantaged backgrounds can protect their savings and grow their wealth, “He said.

The company is targeting millions of people living in struggling economies, such as Lebanon, where inflation is extremely high, the currency has lost more than 90% of its value, and people can only Access to limited savings. Additionally, in war-torn countries like Sudan, people with savings in local banks have difficulty getting their money.

George Robson, partner at Sequoia Capital, said: “Developing a global product that complies with strict financial regulations is no easy task, let alone establishing partnerships with banks, but the nsave team has done it.” “Now nsave is online Now, there is finally a trustworthy option to protect users from rampant inflation in struggling economies, providing safe, stable offshore accounts to those who need it most.”