Fintech & Ecommerce

Nubank Approaches $1 Billion in Revenue

Brazilian neobank Nubank is confident that it will be able to become the largest financial services company in Latin America.

Nubank Approaches $1 Billion in Revenue

David Velez, CEO of the mentioned lender, which operates in the virtual space, said during a conversation with media representatives that sooner or later the specified goal will be achieved. Brazilian Neobank strives to realize its ambitions to become an industry leader in terms of the number of customers.

David Velez says that the financial institution he heads is currently one of the five largest digital lenders in Latin America. According to him, the way is now visible for Nubank to become the absolute leader in the mentioned region and one of the largest players on a global level over several decades.

Analysts predict that in the foreseeable future, the annual profit of the Brazilian neobank will reach a landmark mark of $1 billion. Currently, the financial institution has plans to expand the scope of its activities by starting a history of presence in Colombia and Mexico.

Christoph Stegmeier, a representative of the management consulting group Simon-Kucher & Partners, says that Nubank’s forthcoming annual profits of $1 billion may become a kind of incentive for other digital lenders and investors.

Neobank, headed by David Velez, was launched ten years ago. According to Mr. Velez, the virtual financial institution is currently focused on entering the Mexican market. He says that the mentioned country can become as important for Nubank as Brazil. In this context, David Velez drew attention to the fact that the population of Mexico is almost 130 million people, separately noting the relatively high income per resident. The prospects of this country as a financial services market also lie in the fact that more than half of Mexican adults do not have accounts with traditional banks.

In 2023, Nubank began offering personal loans to customers in Mexico. This decision by the digital lender was an action as part of a larger effort to expand access to credits and financial products.

The results of Mexico’s 2021 National Financial Inclusion Survey indicate that only a third of local consumers were able to obtain loans from traditional banks.

It is worth noting that neobanks are an excellent alternative for that group of the consumer community who are experiencing difficulties with access to finance. Virtual financial institutions, within the framework of customer service, focus on less stringent requirements for those who need services. For example, there are neobanks for non-residents. Digital lenders can solve the problem of access to services in the sphere of financial services.

For companies that offer alternative solutions in the mentioned area, Latin America is a kind of territory of opportunities and prospects. Ximena Aleman, co-founder and co-CEO of the Uruguayan fintech company Prometeo, said during a conversation with media representatives that this firm offers customers a universal, comprehensive infrastructure that consumers can use in several countries at the same time. She noted that such infrastructure is extremely necessary in Latin America.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.