Nubank Overtakes Banco do Brasil as Brazil’s Top Main Bank with Digital-First Innovation – Analysis

Digital banking platform Nubank‘s (NYSE: NU) rise to Brazil’s “number one” bank provider is highlighted in an update which noted that the challenger has now overtaken Banco do Brasil, the country’s oldest bank founded in 1808, signifying a “paradigm shift” in the banking industry.

By prioritizing “digital-first” strategies as well as financial inclusion, Nubank has reshaped consumer expectations, exposing legacy banks’ challenges in user experience and innovation, and setting a “new benchmark for the future of financial services,” says GlobalData, a data and analytics company.

GlobalData’s Global Primary Banking Relationship Analytics 2024 shows that with 100 million customers as well as “a 20% market share in November 2024 the challenger became the main bank provider in Brazil.”

Blandina Hanna Szalay, Banking & Payments Analyst at GlobalData, comments that Nubank is the first digital bank globally to “achieve this status, underscoring the transformative power of fintech in reshaping traditional banking hierarchies.”

Over half of Brazilian adults are now Nubank customers, and a fifth of all adults—appr. 20 million people—”consider this digital-only provider their primary banking relationship.”

This number exceeds the total customer bases of “most challenger banks worldwide.”

Nubank’s growth has been propelled by its strong appeal among Gen Z and Brazil’s lower mass market, claiming “market shares of 35% and 25% within these groups, respectively.”

Szalay continues to note that by focusing on financially underserved communities, Nubank has demonstrated that “inclusion and innovation can drive both social impact and business success.””

These achievements, however, do not only speak to the success of an inclusive neobank—they also “demonstrate legacy banks’ ongoing struggles with user experience.”

According to GlobalData’s Annual Financial Services Consumer Survey 2024, 35% of recent bank switchers in Brazil “did so to receive a better digital banking experience, making this by far the most cited reason.”

This figure rises to “47% among those switching to Nubank.”

This emphasizes the urgency for traditional banks to “modernize their offerings or risk further erosion of their market share.”

Szalay concludes that ultimately, while digital user experience remains a key battleground, the race will also “hinge on building and sustaining customer trust.”

As more players aim to become central to consumers’ financial lives, trust will likely prove “as pivotal as technology in determining long-term success.”



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