The founder and CEO of Nubank, David Vélez, pointed to Mexico as the biggest opportunity currently, highlighting that 88 percent of Mexicans lack access to credit. Vélez mentioned that Mexico seems to be lagging behind other countries and that the growth potential in that market is significant.
Most of Nubank's clientele comes from Brazil, with around 95 million customers, followed by Mexico as the second-largest market and Colombia. The company has stood out for offering deposit accounts with interest rates above the market average and credit cards to people who were previously ignored by traditional banks. In the second quarter, the credit portfolio grew to nearly 19 billion dollars, with 76 percent of that amount coming from credit cards.
Despite concerns expressed by some financial analysts about the recent rise in loan default rates, Nubank has explained that this is an intentional strategy to boost portfolio growth, maintaining close control over any signs of further deterioration. Nubank's revenue is increasing by between 70 and 80 percent annually, according to Vélez.
The company, valued at around 14 billion dollars, holds a market share of nearly 20 percent, placing it seventh on Bloomberg's Billionaires Index in the Latin American region. The company’s co-founder, Cristina Junqueira, has also entered the billionaire list, joining an exclusive group of technology entrepreneurs in Latin America.
Nubank, which emerged from Vélez's frustrations when trying to open a bank account in Brazil and dealing with the excessive bureaucracy of existing financial institutions, operates without branches and offers all its services through a mobile app. The company is exploring new business areas, considering that payroll loans and small businesses are crucial for its expansion.
The Brazil-based fintech bank, No Holdings Ltd, led by David Vélez, is closely evaluating the situation in Argentina under the presidency of Javier Milei and plans to monitor the country over the next 12 months. Vélez stated that everyone in Latin America wants Argentina to succeed. Nubank continues to focus its growth both in Brazil, where there are still many opportunities, and in other verticals outside of financial services. Nubank's success has made David Vélez one of the wealthiest people in the region.
