Nubank hits milestone of 100 million customers throughout Latin America

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Brazilian neobank Nubank made headlines yesterday with the announcement of surpassing 100 million customers across Latin America. This achievement positions Nubank as the first digital bank outside of Asia to reach such a milestone, solidifying its status as a formidable challenger to traditional banks in the region.

 

Nubank hits milestone of 100 million customers throughout Latin America
Nubank hits milestone of 100 million customers throughout Latin America

The fintech giant’s influence is expanding across the continent, with a significant presence in Brazil, where its core operations are based. In recent years, Nubank has been focused on replicating its success in Colombia and Mexico, actively accelerating its growth strategies in these key markets. Notably, Nubank revealed a fresh $100 million investment in Mexico to further boost customer acquisition initiatives in the country.

Having reported over US$1 billion in net profit for 2023, Nubank is experiencing strong momentum and has firmly surpassed the break-even point. The company is poised to release its first-quarter earnings next week, following a remarkable year that has seen its shares surge by nearly 45% year to date, driven by robust performance in the previous year.

Nubank, a LatAm fintech disruptor

“In 2013, we set ourselves the ambitious goal of reaching one million customers in five years, which seemed almost impossible at the time,” stated CEO and co-founder David Velez. “In a decade, we have surpassed 100 million.”

Nubank emerged as a disruptive force in the Brazilian banking sector during the 2010s, experiencing rapid growth as the decade unfolded. Its trajectory culminated in an Initial Public Offering (IPO) on U.S. markets in late 2021, a strategic move that secured substantial funding just before public markets faced challenges in the subsequent year.

Despite its global expansion, Nubank’s primary market remains Brazil. Currently, the neobank boasts over 92 million customers in Brazil, 7 million in Mexico, and nearly 1 million in Colombia. With many Latin American countries still untapped, Nubank sees significant potential to expand its market share by offering a range of financial products in these regions.

“We are still in the early days of transforming banking in Brazil,” noted David Velez in a recent interview celebrating the milestone. “While we have 53% of the Brazilian adult population as customers, our market shares in various financial verticals remain relatively small. This presents a clear opportunity for us to continue growing our market share across every product.”

Beyond 100 million: growing in Mexico is Nubank’s top priority

Velez has emphasized that aggressive expansion in Mexico is a top priority for the company this year. Nubank introduced a deposit account product last year, which has paved the way for significant acceleration in its expansion efforts within this crucial North American market.

In the last quarter alone, Nubank added nearly 2 million new customers, leveraging high-yield accounts to attract customers away from traditional banks. Velez described this strategy as having “accelerated our company-wide flywheel in the country and solidified NU as the undeniable leader in the digital banking sector in Mexico.”

The Mexican market is becoming a key battleground for digital banking expansion in Latin America, drawing interest from both local players and international fintechs seeking to capitalize on its population of 130 million. These efforts aim to drive adoption of online banking services and reduce reliance on cash within the country.

 

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