Digital Banking: Nubank Supports Financial Inclusion of 5.7M Brazilians in Credit Market in One Year

Nubank (NYSE: NU) reveals that it has supported the financial inclusion of 5.7 million Brazilians in the credit card market in one year, according to a study released by Data Nubank – the company’s research and analysis platform on finances.

The survey analyzed “the spending and investment profile of customers with no credit history, and who gained their first access to credit through the fintech, based on data between July 2021 and July 2022.”

For this group, the profile of greater adherence “to credit is of people with a monthly income of up to BRL 2,500.00, which accounted for 80.2% of the total of people who had access to a credit product for the first time through Nubank.”

Considering the age range, those who “gained access to credit through the company’s card are young: on average, 56.8% are between 18 and 30 years old, and 18.4% are in the age range of 31 to 40.”

In addition, access to credit among customers “included by Nubank has not led to an increase in credit card delinquency, which remained at 5.3% in Q4‘2022 – lower than the market average of 7.8%,” according to the most recent data from the Brazilian Central Bank, from December 2022.

Keader of Nubank’s operations in Brazil, Livia Chanes said:

“The conclusion of this study reinforces the main pillar of these ten years of Nubank’s existence, which is to democratize the system for all audiences and promote financial inclusion responsibly, not only offering access to an account but establishing the path to sustainable access to credit. That’s why we are proud to be in 100% of the Brazilian municipalities and have more than 70 million clients in the country.” 

According to the latest available data from the Brazilian Central Bank, 103 million credit cards were “issued in the country between the beginning of July 2021 and the end of July 2022, and Nubank alone was responsible for issuing 5.53% of this amount.”:

In the same period, Brazil “gained 44.6 million new active cards. Of this total, 12.78% were Nubank.”

It is worth noting “that the participation of Nubank’s customers in the national credit market also increased.”

In July 2021, Nubank’s clients “were 32.79% of the total number of people with access to the credit market. In July 2022, this percentage rose to 38.58%.” The increase is “a result of the business strategy adopted by the fintech.”

Operations leader in Brazil added:

“The success of the credit operation and especially the greater participation of people in the credit market stems from Nubank’s proposal since day one: to offer financial services simply, with no abusive fees, in an accessible and digital way. It’s through inclusion and financial education through responsible lending that people become more independent and empowered and can pursue their plans, goals, and dreams.” 

Nubank’s credit card product currently “has 34 million active individual customers.”

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