Nubank has been making waves for some time and is one of the most popular banks in Brazil. Based in Sao Paulo, the bank is quickly becoming influential on a worldwide basis. One thing is certain, it definitely doesn’t do business the way that most traditional banks do business. This has people asking a lot of questions in order to better find out what makes it different. If you’re curious, here are 20 of those things listed below.
1. They are a privately held company
A lot of banks tend to make the decision to go public, but that isn’t the case with this particular entity. In fact they seem to have firmly made the decision to remain a privately held company. That said, the company’s CEO, David Velez, has also hinted that he might be open to the idea of taking the company public within the next couple of years. As a matter of fact, he directly addressed the issue at one point, saying that it wasn’t the idea of going public with the bank that bothered him. Instead, he wants to take time and allow things to move at their own pace so as not to rush things. In short, he doesn’t want to allow the bank to get ahead of itself when it comes to its growth and expansion.
2. They were founded in 2013
That makes sense, considering the fact that they were only founded eight years ago. When you stop and think about the idea that most banks have been around for decades, it makes sense that this particular bank would have executives who choose to take things a bit more slowly. After all, new banks pop up all the time and the overwhelming majority of them fail. Learning to be successful sometimes means learning when it’s a good idea to take things to the next level and when it’s not. Any company that grows too quickly is more apt to fail and that is something that the officials in charge of this bank have closely guarded against allowing to happen.
3. The bank was founded by entrepreneur David Velez
One can only assume that the bank is in good hands. It’s co-founder and CEO, David Velez, has proven time and again that he understands how to make businesses work. He’s also proving that he has an outstanding work ethic, one that is difficult to duplicate. When you put those two things together, it only makes sense that people would have a little bit more faith in the way this particular bank does business.
4. They do business on a global basis
The bank may be based in Sao Paulo, Brazil, but they definitely do business on a global basis. Granted, they started out doing business in their native Brazil. It didn’t take long for them to start branching out based on their overwhelming level of success there. That in turn has given them an opportunity to grow faster than they probably expected. Fortunately, they seem to be handling it well. That’s a big plus when you consider the fact that a lot of people in the bank’s native Brazil genuinely depend on it for their own personal well-being.
5. Customers can open a bank account or get a credit card there
Speaking of the customers, they can open a digital bank account there and even get a credit card. The bank doesn’t operate in the same sense that many banks do, where customers come to a physical location and handle everything in a more traditional manner. As a matter of fact, everything here is handled online. That makes it both easier for customers to do their banking and less expensive for the bank to operate. Those savings can then be passed on to the customers in the form of reduced fees. It also makes it more likely that customers will qualify for a credit card by going through this bank when that might not necessarily be the case elsewhere.
6. They can also apply for a personal loan
Customers also have the chance to apply for a personal loan. Again, most of them are more likely to get approved by applying for a personal loan through this bank than through one of the more traditional financial institutions. That’s a big plus for anyone who is trying to get a personal loan for something that is much needed, yet has been turned down by practically every financial institution they have been to.
7. The bank even offers life insurance policies
You already know that this bank does business a little bit differently, but it might surprise you to realize that they even offer life insurance policies. The thing that sets these policies apart from so many others is that the bank makes it as easy as possible to get a policy at an economical rate. In short, they open the door for individuals and families alike who might not otherwise be able to afford such a policy an opportunity to get one.
8. They have a customer rewards program
They also have a customer rewards program that allows their consumers to enjoy perks like cash back on purchases, discounts for certain items and even a few free giveaways that they do from time to time throughout the year. There is a fee for participating, but customers have the opportunity to enjoy trying things out for 30 days without it costing them anything whatsoever.
9. They’ve helped millions of customers
To date, more than 34 million people have decided to do business with the bank. That fact alone should serve as an overwhelming testament to the fact that the bank puts their consumers first as opposed to putting their own profits before people.
10. They have thousands of employees
Just this year, they added a number of additional employees, bringing the total number of people working for them to 3,700. It’s almost incomprehensible to think that a bank could have this many employees, but it is important to remember that they do business on a worldwide scale. As such, they have to have a lot of people in their corner so that they can do what needs to be done.
11. The bank is the brainchild of its CEO, David Velez
The reason this bank got its start is because its CEO, David Velez, wasn’t happy with the way that traditional banks operated in Brazil. As soon as he realized that the overwhelming majority of banks were basically controlling the Brazilian population and keeping them under their thumb, he decided to open a bank that operated differently so he could do something about it. Eight years later, it might be safe to say that his decision to do so was an overwhelming success.
12. Billionaire Warren Buffett is now involved
You know you have to be doing something right when billionaires like Warren Buffett start getting involved. Recently, Buffet decided to back the bank through his own company, Berkshire Hathaway. As a result, the bank was granted another round of funding, this time totaling more than $30 billion. This money will allow the bank to expand even more into other areas in addition to its native Brazil. Because of the fact that it already operates on a global scale, it plans to further enhance its operations in other countries like the United States.
13. The bank has been expanding into others areas, too
In addition to having a desire to expand into the United States, the bank has also been working more in other areas such as Mexico and Colombia. Well it would be remiss to say that they haven’t operated on a global scale in the past, they do indeed seem to be on track for becoming a truly global company as opposed to a company based in Brazil who just happens to do digital business around the world.
14. They seem to be on track to do more business than any Brazil-owned bank in history
As a result, they’re also on track to do more business than any other Brazil owned bank in history. As a matter of fact, they have already issued more credit cards than any other Brazilian-based bank. Part of that is because they are willing to approve credit cards for individuals who might have been denied those same lines of credit by other banks. However, a large part of it involves the fact that people seem to be more trusting of this particular bank and therefore, more willing to do business with them.
15. The bank makes money in a rather unique manner
Banks have a tendency to make money in different ways. In this case they make a lot of their money from the credit cards that they issue. Every time a customer uses a credit card, a small percentage of the money that they have charged is paid to the bank by the credit card company. It’s not a lot of money for each transaction, but all of those smaller amounts definitely add up.
16. They provide the highest level of convenience for their customers
Another way that the bank differs from so many others is that customers don’t even have to leave the comfort of their own home in order to do their banking. Sure, they can go to an ATM and withdraw money just like anyone else, but if they prefer, they can sit at home in their pajamas with their feet up and handle everything from checking their balance to paying bills and even making purchases.
17. Their services couldn’t be easier to use
In addition to allowing customers to bank from home, Nubank has also made it a point to purposefully make all of their services as easy to use as possible. They don’t subscribe to the idea that banks need to have complicated fees or long, drawn-out loan application processes in order to be successful.
18. The bank’s customer base almost tripled in just two years
It’s almost unheard of to think about any business tripling their customer base in just under two years, but that is precisely what has occurred here. As a matter of fact, the bank that’s been in existence for less than 10 years now has almost three times as many consumers as they had in 2019. Believe it or not, part of that is due to the pandemic. The fact that consumers can open accounts and manage them 100% online was a big selling point during a time when people essentially couldn’t get outside of their homes to do much of anything. After discovering the types of services that the bank offers and how easy it is to do business with them, most people decided to stay.
19. They have a partnership with MasterCard
They also have a long-standing partnership with MasterCard. That is essentially what allows them to get a small percentage of fees from every credit card transaction that their customers complete. That partnership is beneficial to the bank because it gives them a large chunk of their income to pay operating costs. Better yet, it allows the bank to continue providing these types of services without charging consumers more money.
20. They look at their customers as people instead of sources of revenue
Perhaps the best thing about the bank is that they look at their customers and they see human beings instead of potential sources of revenue. As such, they tend to go out of their way to make sure that their customers have everything they need when it comes to their finances. They also tend to be a bit more lenient in their decision-making process than many other banks. This affords them an opportunity to experience enormous success because more customers come to them for help with their financial needs.