Nu is amplifying its credit portfolio with new options in Brazil and Mexico. Workers in Brazil now have a new alternative of secured credit, and customers in Mexico will be able to contract personal loans at Nu, a new addition to our growing product platform in the country.

Also in this issue: Nu holds the highest principality rate among Brazilian financial institutions according to J.P. Morgan, the under-18 account gains a new feature for parental control, Money Boxes reach 8.6 million active customers one year after launch, and more.

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Nu is further solidifying its multi-product platform in Mexico and expanding its global credit strategy with two new offerings: the launch of personal loans for Mexican customers, and a new option to secure loans in Brazil. 

• Secured lending in Brazil

Nu is launching FGTS-backed loans for customers in Brazil, strengthening its secured lending portfolio. FGTS is a mandatory savings fund for employees in the country, funded by employers and with limited withdrawal opportunities (e.g. job loss or home purchase). With the new product, Nubank customers can use the fund to back loans without compromising their monthly budget. Interest rates will start at 1.3% per month, depending on an individual analysis of each eligible customer's profile. By innovating processes and optimizing costs, Nu provides a safer, faster, and cost-effective option for customers.

Earlier this year, the company started testing payroll lending for federal public servants. According to Brazilian Central Bank data, Nu offers the lowest rate on the market for this type of loan, making the market more competitive while recording high levels of satisfaction.

• Lending in Mexico

The launch of personal loans is the most recent step in the company’s expansion in Mexico. The 3.6 million customers in the country already have access to credit and debit cards, as well as Cuenta Nu, the savings account that attracted 1 million customers in only one month since its official launch. With the new product, Nu envisions the opportunity to attract an even larger base and further engage the existing customers.

The company intends to remove complexity and add transparency to the process of contracting loans in Mexico, empowering customers with clear steps and information to make the most of their money. According to surveys conducted in the last two years, 6 out of every 10 Mexicans had applied for a loan at some point, but only 33% were able to obtain one from a formal financial institution.

Nu’s successful lending strategy at a holding level is supported by its large customer portfolio, best-in-class credit underwriting platform, strong capital base, and ample liquidity position. In Q2’23, the company registered a US$2.8 billion lending portfolio, which represents a 33% increase year over year, with cohorts continuously performing better than expected.

#1 in principality. Nubank holds the highest Primary Banking Relationship rate among financial institutions in Brazil, according to a J.P. Morgan survey. “Being recognized as the primary bank means Nubank has an entire avenue to gain market share in Brazil for multiple years”, wrote the analysts, upgrading Nu’s rating to overweight.

Digital currency tests. Nu started its integration tests in the pilot project of Drex, the Brazilian digital currency formerly known as Real Digital. The company is one of the 16 financial institutions chosen by the Brazilian Central Bank to participate in the pilot. Nu believes that Drex has a large innovative potential, making financial operations simpler, safer, and more efficient.

Management update. Elita Ariaz was appointed to become Nu’s Chief Legal Officer (CLO), effective February 2024. Elita has over 20 years of experience in the financial services industry, having been an active participant in key technological and regulatory developments in the financial system, from wholesale and retail to private banking. 

Recognition. Nu was recognized as the Most Innovative Bank in Latin America by The Banker, a Financial Times publication. The award highlights that the company’s dedication to efficient scaling enables us to offer high-quality, innovative financial services with agility.

Parental control for under-18 accounts. Parents and legal guardians now have further visibility into their children’s transactions within the app with the Parental Control feature. Nu currently has more than 1.2 million under-18 customers and has recently expanded the minimum age from 12 to 10 years old, engaging customers from a younger age while fostering financial education.

Caixinhas’ growth. In just over one year since the official launch of Caixinhas (Money Boxes), 8.6 million customers are actively using the product, amounting to R$ 14.6 billion (~US$ 2.9 billion) in assets under custody. Money Boxes are an innovative solution to save and invest money according to specific goals and timeframes. 

Nu Colombia in Google Pay. Customers in Colombia can now add their Moradita (as our credit card is popularly known there) to their Google Wallets. The previous experience from the implementation in Brazil and Mexico significantly streamlined the process in Colombia – a statement to Nubank’s efficient scaling efforts.

• David reflects on the decisions he made in these first 10 years of Nu, and the company’s journey to more than 85 million customers (and beyond) in 20VC podcast. He also touches on topics like the importance of culture and how that was built from the start at Nu, the Latin America startup environment, the Brazilian innovation landscape, and even the values he teaches his four children. 
   
• Cris Junqueira talked about Nubank’s purpose, trajectory, and expected future endeavors in Jota Jota podcast. She also shared personal topics, such as her own career and experience with motherhood.
   
• Investment in fintechs over the last decade has significantly impacted the lives of millions of people in Latin America, reports TechCrunch. The publication highlights Nubank’s role in this front, “making banking much easier for the average Brazilian with its mobile app and credit card programs”.
   
• Juliana Roschel, Nu’s Marketing Director, spoke about the company’s customer-centricity and growth strategy in the Masters of Marketing podcast.
   
• Nu is further solidifying its multi-product platform in Mexico and expanding its global credit offering with the upcoming launch of personal loans. Customers can contract the product in less than five minutes, as highlighted by Reuters.
   
• “Cuenta will make it possible for us to say yes to all Colombians,” said Marcela Torres to Forbes. The Nu Colombia General Manager shared insight into the local operation and strategy for growth, including the expected launch of a savings account this year.
   
• Parents or legal guardians are responsible for children’s under-18 accounts and can now follow transactions closely with the launch of Parental Control. “It’s a supervision feature and also a tool to start the conversation about money”, said Livia Chanes, Country Manager in Brazil, in an interview with Estadão.
   
• “The growth in number of customers using Money Boxes in 2023 shows how much the investors, whether they are beginners or not, are driven by concrete objectives”, said Guilherme Espallargas, leader of Nubank’s investment area, to Valor Econômico. 

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