Nubank Surpasses 100 Million Customers

Nubank, the Brazilian digital bank, has reached over 100 million customers, becoming the first digital banking platform outside of Asia to achieve this milestone. The company announced the achievement in a press release on Wednesday (May 8), celebrating its rapid growth and the trust customers have placed in its customer-centric approach.

“In 2013, we had set ourselves the ambitious goal to reach 1 million customers in five years, which seemed almost impossible at the time,” said Nubank founder and CEO David Vélez. “In a decade, we have surpassed 100 million, which is a testament to the power of a truly customer-centric business model.”

Nubank has more than 92 million customers in Brazil, over 7 million in Mexico, and nearly 1 million in Colombia. This announcement comes on the heels of a record year in 2023, with the bank reporting over $1 billion in net profit and revenues exceeding $8 billion.

UChristoph Stegmeier, from management consulting group Simon-Kucher & Partners, highlighted the significance of Nubank’s achievement, noting that it’s the first time a Western neobank has reached this milestone, which should inspire confidence among peers and investors.

Vélez sees Mexico as a critical part of Nubank’s future growth, citing its large population and high mobile banking adoption. He stated that the country “has the potential to be as important as Brazil for us,” with more than half of its adult population lacking a bank account despite having a higher income per capita.

Nubank’s success comes at a time when traditional banks face challenges in adapting to a rapidly changing digital landscape. A report by PYMNTS suggests that banks are under increasing pressure to innovate due to consumers’ growing preference for digital channels. James Butland, vice president of payments and U.K. managing director at Mangopay, noted that traditional banks face obstacles because of their outdated infrastructure and technology.

“The challenge that a traditional bank has is that they sit on 150, 200 years of legacy infrastructure and probably 60 years of legacy technology,” said Butland. He also pointed out that banks are beginning to recognise the need for faster innovation to keep up with technological advances.

Nubank’s journey from a fledgling digital bank to a powerhouse with over 100 million customers underscores the shifting dynamics in the financial services industry. The bank’s customer-first approach and adaptability to digital trends have driven its success and continue to set a new standard for others in the sector.