Nubank (NYSE: NU) is the largest digital banking platform in the Western Hemisphere, serving over 100 million customers in Brazil, Mexico and Colombia. One of every two adults in Brazil is a customer and has enabled 20.7 million Brazilians with their first credit card. This company has achieved economies of scale with most recent quarterly results posting $2.8 billion in revenue and $487 million in net income (17% net income margin which is more tech like than financial institution). Nubank prides itself on utilizing best in class IT solutions which is unencumbered by the inefficiencies of legacy systems and, in doing so, has greatly simplified the end user experience which led to the company’s success in its native Brazilian market. Anyone can open a bank account but must be eighteen years old and own a mobile phone, there are no maintenance fees, enables direct payment of power, water, telephone bills, and popular Ecommerce sites, free and unlimited transfer to any bank, provides daily returns higher than most savings accounts from the time of the original deposit and there are debit and credit card sign up options. Nubank makes money on the payment card and installment loan transaction fees, plus interest on outstanding balance and selling a variety of other financial services like insurance and investment products. For those interested in the Brazilian FinTech scene, Nubank is an excellent introduction.
