Nubank is now testing NuConsignado among its public servants' customer base. The much-anticipated product is a type of loan settled directly and automatically from the payroll. In this issue of our newsletter, you will read more about the launch and get a deep dive into our credit underwriting strategy.

Also featured: Nu Mexico turns four and announces Money Boxes (Cajitas) in the buildup to the roll-out of Cuenta Nu, a Financial Inclusion study in Brazil, Personalized recommendations in the app to further empower customers, Nubank is once again one of the World’s Best Banks according to Forbes, and more.

You can now read all previous issues of NuHeadlines in our Newsroom, through this link.

Nubank started testing its payroll-deductible loan product with public servants, the first offer of NuConsignado. The much-anticipated product allows federal public servants to simulate loans directly in the app with transparent fees and total effective cost and take them out digitally without intermediaries. With it, Nubank fosters transparency and ease of use in a sector marked by bureaucracy and hidden fees.

NuConsignado is part of a wider company strategy of offering responsible access to credit, and growing collateralized credit is one of Nubank’s priorities for 2023. Our credit portfolio is expanding deeper into secured options, with investment-backed loans, but also includes long-known unsecured options, such as unbacked personal loans, and credit card – which is incremented by also allowing Pix transactions in installments, and offering specific lines to pay boletos (barcode payment slips) without compromising the monthly limit. 

Customers with no credit history are offered a gamified experience to build their line of credit responsibly. The app experience is tailored to give clients autonomy and information to make decisions by offering limit adjustments and disclosing the interest rate beforehand when deciding to pay the bill in full or in installments.

“Our vision for credit caters to all income bands, stemming from Nubank’s core value of removing bureaucracy and allowing customers to make the best-informed choices for themselves, with all options and information clearly available. We strongly believe that we can help people reach their goals through a simple and assertive experience”, states Livia Chanes, country manager of Nubank Brazil. 

Nubank’s market share in credit has been increasing, while delinquency ratios are kept under control, behaving as expected, and following market trends. A recent study by Data Nubank showed that the institution included 5.7 million Brazilians in the credit market between July 2021 and July 2022. With this, Nubank’s participation in the credit market increased from 33% to 39% in twelve months, with no negative impact on credit card delinquency. The research also found that Nubank was the first saving and investing experience for 55% of customers who have money invested anywhere.

Nu Mexico turns 4… This March, Nu celebrated four years of operations in Mexico and three since the launch of our credit card in the country. We are already the largest SOFIPO (Popular Financial Institution, in Spanish) in Mexico, as well as the fifth-largest issuer of credit cards there, with 3.2 million customers and an NPS of ~90, reflecting customer satisfaction. 

… and the portfolio keeps getting stronger. Earlier in the year, we started rolling out to a reduced base of customers a beta of Cuenta Nu, our digital account with debit card. Now, we are introducing Money Boxes (“Cajitas” in Spanish), a feature that will help Mexicans achieve their financial goals and make the most out of their money. Customers can now transfer money from their Cuenta Nu to the Cajitas with 3 simple touches and it begins to automatically yield at a 9% annual rate, without losing its 24/7 liquidity. Customers in Brazil have quickly adhered to the functionality since launch, and it was highlighted by Fast Company when choosing Nubank as one of the World’s Most Innovative Companies in 2023.

In-app alerts and reminders. Nubank empowers customers to make the best-informed decisions not only in credit but in their financial lives as a whole. A new dashboard in the app concentrates all recommended actions and alerts, such as paying a bill on its due date, re-trying an unsuccessful transaction, and approving or stopping a suspicious purchase, among others.

Protection pack. Nubank offers an exclusive set of security features and tools to help protect customers from fraud and scams. Our Protection Pack includes security mechanisms that can identify unwanted transactions and potential scams in Nubank’s app, as well as protect customers through an artificial intelligence system that is always on – from the moment a customer opens an account with us. Since those defenses operate in the background, we launched a campaign to show how each of those features can be helpful in real-life situations, from having the innovative protection of Modo Rua activated to receiving an alert from Scam Warning before a suspicious transaction.

Nu Colombia growth. Colombia is currently our fastest-growing market and also registers a higher growth rate than any of the entities regulated by the Superintendencia Financiera de Colombia. By the end of 2022, Nu Colombia already had 565.000 customers, representing a 4x year-on-year growth, in 100% of the country’s departments and nearly 80% of the municipalities.

Awards and recognition. Nu was recognized by Forbes as the Best Bank in Mexico, being featured as #1 for the second consecutive time. We were recognized in multiple other rankings in the past month – amounting to 10 recognitions in March only. Among those, we are:

• #7 Most valuable brand in Brazil, according to Interbrand.
• #1 Best Service in the categories of Digital Banking and Banking App by Estadão.
• #1 overall and in the Digital Banks category in the Onboarding Ranking by idwall, recognizing customer experience when opening an account.
• #1 Digital bank by Top of Mind Amanhã 

Restaurant Week sponsorship. Ultravioleta (our black card) customers will have exclusive perks during the 30th edition of São Paulo Restaurant Week, one of the largest and most awaited gastronomic festivals in the country, which Nubank is sponsoring. UV clients will get an extra seven days to enjoy the festival, as well as complimentary coffee in premium and diamond menu restaurants. 

Financial inclusion. Nu included 5.7 million Brazilians in the credit 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 who gained their first access to credit through Nu.

BDR program restructuring. You can now follow all updates about Nubank’s request to B3 and CVM to restructure its BDR program in Brazil in this link.

• David Vélez spoke to Blu Radio about how technology is helping reinvent the financial services industry in Colombia and how young people play an essential role. 
  
  
• Cristina Junqueira highlighted Nubank’s disruptive DNA in a TedTalk, stating that Nu’s competitive advantage comes from our strong culture since the beginning and showing how we helped shift the industry. 
   
• “With the Nubank way, we are taking the first step towards transforming the payroll-deductible loan market and making life easier for the customer, from considering the loan and managing it to paying off the installments”, says Livia Chanes, Brazil GM, in a quote in Valor about our new product offer.
   
• Nubank provided access to credit to 5,7 million people in Brazil without registering an increase in the non-performing loan rate (NPL) on credit cards, keeping it under the market average. Our Data Nubank findings made the news on Estadão Broadcast.
   
• This was the first time Nubank was ranked as one of the 25 most valuable brands in Brazil by Interbrand. Media outlets in the country, like Valor Econômico, highlighted our milestone in their articles about the award.
   
• El Economista brought an overview of our successful operations in these first four years in Mexico, highlighting milestones and opportunities for growth in the future in an article quoting Iván Canales, Nu’s GM in the country.
   
• “Nu Colombia has achieved a significant growth path in all indicators, reiterating the company’s potential in the country and setting the path for what is to come in terms of strength and expansion of the product portfolio,” said David in Portafolio about the operation’s growth rate.
   
• Our CPO Jag spoke to 20Product Podcast about how to mix science and art when developing products, Nubank’s main strengths and challenges to scale, and what drew him to come to work at Nu in the first place.
   
• "No matter the role, the most important skills to develop are adaptability and the ability to learn something new quickly,” said VGO to Forbes in an interview about his career and recent rise to the role of Nu's CTO.
   
• Multiple outlets shared information about the launch of our personalized recommendations dashboard in the app. Tecmundo says the alerts will improve clients’ financial life.
   
• Credit portability is little known by customers and considered bureaucratic, reinforced a study conducted by Datafolha at Zetta’s request. Zetta is a non-profit association founded by Nubank and other digital financial services companies with the goal of ensuring a competitive environment and fostering financial inclusion and innovation. The study was presented at an event with public officials to discuss improvements to portability to better support consumers.

(Articles in this section may be subject to a paywall and available to subscribers only, depending on the news outlet.)

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