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Nip Capital

Nip capital enables SMEs and unbanked people in emerging markets to transfer money across Africa cheaply and instantly.

Photo of Alex Mativo
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Who is your idea designed for and how does it support the dreams and obligations of those 50 and older?

Our solution is designed for the unbanked people in emerging markets who rely on financial aid in the form of remittance from family, friends and relatives. Remittances in emerging markets have the highest structured charges and tends to be slow and inefficient. We want to offer a transparent and low cost remittance service, simplify paper-heavy, expensive and logistically complicated financial systems by offering an easy to use service for the millions of unbanked people in emerging markets.

The problem.

 

The mobile phone is the most ubiquitous communication device in emerging markets.  There are three billion unbanked mobile phone users – people with little or no access to traditional financial services. Since majority of elderly people in emerging markets rely on financial aid in the form of remittance from immediate family, friends and relatives, remitting money across borders tends to be costly and inefficient if they use the existing solutions due to high exchange rates and opaque regulatory fees charged to users.  As of 2016 world bank reports that Africa alone loses 1.8 billion annually in money               remittance due to high exchange rate fees and opaque regulatory fees charged to users, thereby making it difficult for family members to fulfill their obligations.


The solution.

Nip capital is a Startup driven by the belief that sending money should not be limited by physical borders. Our easy to use service is built with feature phones in mind. The service is plugged into mobile networks and banking platforms to make the process of moving money to your friends, relatives, employees or businesses across Africa cheap and instant. Less than third of the 550 million mobile subscribers in emerging markets own smartphone, yet these subscribers need access to low-cost and instant cross border money transfers. Existing services either concentrate on disrupting the banking industry by developing digital banking apps for smartphones or offer high transfer costs and opaque regulatory fees to their users.

We want to offer people in emerging markets transparency in remittance fees, lower cost money transfer service, simplify paper-heavy, expensive and logistically complicated financial systems, offer cross border transfer, open trade borders and increase financial security in Africa by leveraging existing and booming platforms such as mobile money, USSD and text messages

 

What early, lightweight experiment might you try out in your own community to find out if the idea will meet your expectations?

The African community believes in coming together to pool resources. We could leverage such common platforms where people come together to crowdfund elderly individuals who are in need of financial aid to get things like medical treatment and offer a prototype of our solution to test out whether family or friends living across borders could contribute money cheaply and efficiently without the hustle that comes with sending money to unbanked people in emerging markets.

What skills, input or guidance from the OpenIDEO community would be most helpful in building out or refining your idea?

For Nip capital to be actualized we need the OpenIDEO community to test out , use our service and offer valuable insight on how we can improve our service to cater to the financial needs and obligations of the elderly.

Tell us about your work experience:

I am a designer and Entrepreneur. I began E-lab in 2014, company that connects designers across Africa to eradicate hazardous electronic waste discarded in African communities by transforming it into jewelry and furniture for the fashion industry.

Please check all that apply:

  • I'm not currently involved in a credit union, but am curious to learn more!

This idea emerged from

  • A group brainstorm
  • A student collaboration

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Photo of Kate Rushton
Team

Hi Alex!

Thank you for your post. How would this work logistically? Would this be like m-pay with mobile to mobile transfers across international boundaries?