Nubank (NYSE: NU) has finalized negotiations for seven new agreements to expand the offering of NuConsignado, its 100% digital payroll loan service.
The new contracts include the three branches of “the Brazilian Armed Forces—the Brazilian Air Force, Navy, and Army—as well as the municipalities of São Paulo, Rio de Janeiro, and Belo Horizonte and the state of Paraná.”
NuConsignado became available in Brazil “in March 2023 for Nubank customers who were federal public servants and soon included pensioners and retirees from the INSS (National Institute of Social Security).”
With the future inclusion of the seven new agreements, Nubank will reach “a total of nine, with the potential to offer NuConsignado to over 10 million customers within its base, considering the current 95.5 million customers in Brazil recorded at the end of the second quarter of the year.”
The release of payroll loan contracting via the Nu app for these new beneficiaries “will be done gradually, with no set deadline due to regulatory requirements in the implementation.”
The ability to reduce complexities “with a 100% digital quotation and contracting flow, which can take less than three minutes, and without bureaucracy, enabled Nubank’s entry into the category with highly competitive pricing.”
According to data from the Central Bank of Brazil “for the period between July 25 and 31, Nubank has one of the lowest average interest rates in payroll loans for both public servants (1.41% per month) and INSS beneficiaries (1.56% per month).”
In addition to the possibility of directly contracting NuConsignado via the Nu app, eligible customers also have the option “of portability of the payroll loan, which can be done in a few clicks via the application.”
The contracting and portability flows “have a 100% app-based identity and data verification stage for greater security and fraud prevention.”
By innovating processes and optimizing costs, the company has “become able to offer a safe and advantageous option for clients eligible for this type of low-risk credit.”
