Nubank (NYSE: NU), which claims to be one of the largest digital financial services platforms in the world, reportedly reached the milestone of 80 million customers in Latin America “in the first week of April 2023, where it maintains operations in Brazil, Mexico and Colombia.”
The Brazilian operation closed March “with a growth of 31.5% in 12 months, reaching more than 75.2 million customers, including the SMEs (Small and Medium Enterprises) segment.”
The number of entrepreneurs and businessmen “with a Nubank PJ account (legal entity) exceeded 2.7 million, which corresponds to a jump of more than 66% also in one year.”
The first three months of 2023 “have represented significant progress for Nu México and Nu Colombia, which registered more than 3.8 million customers together, representing an increase of 66% in one year.”
These Nubank operations also “began to diversify their product portfolio with the implementation of Cuenta Nu in Mexico which is gradually being made available to the client base.”
Meanwhile, Nu Colombia continues “working on the development of new financial services and savings products.”
David Vélez, CEO and founder of Nubank, stated:
“We added close to 5 million customers to our base in little more than a quarter, always with a great contribution from the Brazilian operation and a growing adherence of Mexicans and Colombians. The milestone of 80 million users reveals Nubank’s operational efficiency and ability to balance global expansion and portfolio diversification and have more and more engaged customers.”
As noted in a blog post, this growth “has a natural impact on an increase in revenue per customer, structured around three pillars for the development of our products: Banking-Expense-Savings.”
The firm’s management also mentioned that “starting from the premise that money involves all aspects of a person’s life, we are creating, globally, a new category among fintechs, which can be described as ‘Money Platform’, a technological platform whose objective is that the client sees the optimization of money for their own benefit.”
Amid the growth of the client base, Nubank reportedly “saw its number of investment clients in Brazil increase by 130% compared to the end of the first quarter of 2023 and the end of the first quarter of 2022.”:
There are reportedly more than 9.2 million active users “in investments, positioning the company as the largest 100% digital investment platform in Latin America.”
The jump in AuC (assets in custody) was “close to 36%, reaching more than R$ 47.6 billion (US$ 9.6 billion) in one year.”
During the first quarter of 2023, Nubank expanded “its credit strategy with one more step in testing NuConsignado , the company’s payroll-deductible loan program.”
The product is currently “being gradually made available to the Federal Public Servants customer base to enhance the sustainable credit offering for the business and further engage a significant portion of the customer base.”
According to an internal survey, more than 30% of the financial volume of payroll-deductible loans, “whether public or private, in the Brazilian market is managed by clients who already have a relationship with Nubank.”
The company is also “advancing in the granting of collateralized credit.”
The most recent “is No Limit Guaranteed, Nubank’s first move to increase credit card limits based on different investments.”
In November of last year, it announced “a first version of a collateralized loan in which the collateral comes from applications of eligible clients for the personal loan in the Planned Rescue ( blocked deposits), the amounts of which continue to yield.”