Nubank: The largest neobank in the world
Nubank: The largest neobank in the world
Shedding light on the financial and operational intricacies that underpin their success.
In the world of fintech, where innovation and profitability often collide, Nubank stands out as a remarkable exception. Their achievements are especially noteworthy for a startup that took root in Brazil just a decade ago.
Financial performance
Nubank has a market cap of over $39 billion.
In the second quarter, it achieved profits of $225 million.
Don’t forget to subscribe to our weekly newsletter, it’s free!
Customer base
Nubank boasts more than 85 million customers.
Market position
Its market cap places it above Capital One and not far from BBVA.
It is the third most valuable bank in Latin America, after Itaú and Santander Brasil.
Founding and expansion
David Vélez founded Nubank at the age of 31.
They began issuing credit cards in Brazil in 2014 and in Mexico in 2020.
Operational challenges
Operations in Mexico still generate losses.
Geographic presence
Nubank's current market cap reflects only its operations in Brazil.
The opportunity in Mexico is considered significant due to higher per capita income and lower credit card penetration.
Founder's wealth
Forbes estimates that David Vélez and his family's wealth exceeds $8 billion.
Start-up success
Nubank is a rare story of a startup that became a global company in less than a decade.
We asked David to explain to us how they adjusted their model to make it work in Mexico. This is what he told us.
In this video, he explains what needs to happen for a neobank to become an organization capable of generating profits.
"Investors don't give us credit for Mexico yet; they truly value Brazil," he says. However, David is convinced that the opportunity in Mexico is as substantial as it has been in Brazil so far, considering that, even though the population is smaller, the income per capita is higher than that of Brazil, and there is much less credit card penetration in the market.
In this part of the interview, he discusses how unlikely it is for a startup to succeed ("banks weren't going to just stand by; entrepreneurship is going against the odds"), why David and his wife decided to sign the Giving Pledge and commit to donating the majority of their fortune ("we want our children to struggle, to fail, to have to prove themselves. To develop their character and not have everything handed to them"), and also shares insights about the future of Nubank.