It is not every day that a Swiss fintech startup successfully launches in the U.S. The company only plans to become operative in Switzerland next year, according to information obtained by finews.com.
In Swiss fintech circles, Nummo is all but unknown. Unlike in the U.S., where the Zurich-based startup managed to grow a firm and broad customerbase.
The clients of the Swiss firm are using its platform to organize their personal finances – what is being called «Personal Financial Management» (PFM). Nummo provides the digital means to keep control of an array of accounts and to manage and optimize assets.
A Fast Career at Julius Baer
Nummo is only active in the U.S., but its platform has been used for $200 million worth of transactions since it started out five months ago. «We aim to break through the billion-dollar-threshold by the end of the year,» said Roi Y. Tavor in an interview with finews.com. Surprisingly, about seven out of ten customers are female.
Tavor, a 40-year-old native of Basel with dual Swiss and Israeli citizenship, started his career as a lawyer in the U.S. and moved into finance a decade ago. At private bank Julius Baer, he rapidly moved up the career ladder and was made managing director.
A Growing Wealth Gap
In his years in banking, he realized just how similar the services provided by the various banks had become and that the transition to digital banking was unstoppable. He became convinced that the majority of clients would move to personally manage their finances via digital platforms.
«Digital financial management starts with retail banking and continues in private banking with a larger number of applications and tools,» the Nummo CEO continued. «Given the ever increasing wealth gap, we want to help those who need to improve their own financial situation the most.»
Cloud-Based and Secure
Based on their convictions, Tavor teamed up with two of his former colleagues at Julius Baer to develop the idea they called Nummo (which took its cue from the Latin word of «nummus»). Enrico G. Schoch (pictured above) acts as chief operating officer (COO), while Gregor Mueller (pictured below) is the chief product officer (CPO).
The founders of Nummo had two strong convictions guide their early steps: the independent digital platform had to be cloud-based and absolutely secure. Nummo chose Amazon Web Services (AWS) to provide the cloud and signed a deal with Amanox, a Swiss firm, to implement the solution. AWS had recommended Amanox to Nummo.
More Than 19,000 Companies Signed Up
Security is being provided through multiple control mechanisms and updates – which is essential, given that more than 19,000 financial services providers have linked up to the platform in the U.S. They guarantee that each customer is able to keep his own finances under control.
«Americans on average have fifteen different bank relations,» said Tavor. «They come in the form of savings and investment accounts, credit cards, mortgages, student loans etc.»
«Expansion» Planned in Switzerland
Making the U.S. its first market is very much due to Tavor's personal background and his time in the U.S., but primarily the fact that the U.S. is a market that is much easier to crack than Europe. The U.S. market is much more homogenous than the European market, which has different sets of rules and regulations that need to be satisfied and lower technological standards.
Nummo wants to expand further in the U.S. and also establish its services in Switzerland. «On condition that the regulatory and technological conditions are being met, we will be ready by the end of 2020 at the latest,» said Tavor. Nummo currently has 13 members of staff employed in Zurich and Lugano.
Prominent Investor
Organic growth won't suffice to undertake the planned expansion and Nummo therefore is working on another round of financing. Friends and family contributed almost a million francs and a first financing round added a further 1.8 million. One of the main sponsors of the business is Ariel Luedi, the tech pioneer based in Cham (near Zug). Today, he is one of the biggest owners of Nummo.
Emboldened by its successful start five months ago, the founders of Nummo are positive about reaching their next goals. They have hardly resorted to marketing to make the service more broadly known. Instead, the company created what it calls a «buzz» in social media. With success: Tavor was invited to speak at the Las Vegas Consumer Electronics Show (CES) in January about Nummo and the future of the financial services industry.
