Nubank, the holding behind the Brazilian Nubank and other subsidiaries operating in Mexico and Colombia, has become the most valuable publicly traded financial institution in Latin America, with a market capitalization of nearly 66 billion dollars. Its customer base includes almost 60 percent of the adult population in Brazil, and Mexico is its second largest market, followed by Colombia.
Nubank's strategy involves attracting customers with deposit accounts that pay above-average interest rates. Recently, João Vélz, CEO of Nu, mentioned that the company's revenue is growing at a rate between 70 and 80 percent annually. Regarding new areas of business, he considers payroll loans and small businesses to be key to its growth.
In Mexico, Nubank has experienced a steady increase in its customer base since 2023, closing the year with 93.9 million, representing an increase of nearly 40 million in the last two years. It also surpassed one billion dollars and achieved record figures in its first full year of profitability.
In 2023, Nu Mexico submitted an application to the National Banking and Securities Commission to operate as a multiple banking institution. Iván Canales, the company's CEO in Mexico, explained that the banking license is a strategic step in Nu's long-term plans.
Cristina Junqueira noted that they are looking to secure the appropriate regulatory framework to unlock the next steps for Nu Mexico and grow as much or more than they have in Brazil. João Vélz argues that Mexico represents the greatest opportunity at this moment, as 88 percent of Mexicans do not have access to credit.
Nubank's success story has its origins in Vélz and Junqueira's frustrations when trying to open a bank account in Brazil. This experience led them to create a branchless financial institution, with all services managed through a mobile application.
With over 110 million customers in Brazil, Mexico, and Colombia, Nubank has achieved extraordinary growth, becoming one of the largest digital financial platforms in the world. David Vélz, co-founder and CEO, has been key to this success, positioning himself as one of the richest Latin Americans according to the Bloomberg Billionaires Index.
