Fintech Nubank is considered the favorite bank for young people. However, now Nubank has new plans: to gain popularity among the unbanked. That’s right, fintech intends to help bank all of Latin America.
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Why bank all of Latin America?
Approximately 50% of the Brazilian population does not have a bank account. In countries like Mexico and Colombia, the situation is similar. Another interesting fact about the Mexican population is that only 10% have access to a credit card.
Given these data, the CEO of Nubank, David Vélez, wants to bank all over Latin America. In an interview with CNN Brasil Business, the CEO points out that:
There are still 60 million Brazilians who put their money on the mattress, as well as in Mexico and Colombia, where more than half of the population has no access to financial services.
Vélez, who recently received $ 400 million in an investment round, sees these figures as an opportunity to expand fintech’s reach. In addition, the CEO intends to captivate customers who are dissatisfied with the services of traditional banks.
As a tactic to attract dissatisfied customers, Vélez intends to offer more and more services. In September 2020, he bought Easynvest, aiming to enter the investment market. In addition, it recently launched life insurance.
Tactics for banking across Latin America
According to the Nubak CEO, the tactic to reach more customers will be to offer a wide range of products to those who need financial products. Thus, he wants to win over customers of classes A and B, who have an account at Nubank, but who still do not have interesting products for their demand.
With that, he wants to reach those who wish to leave traditional banks, and who are looking for new experiences at fintech. However, the CEO doesn’t just want to please these customers.
In addition to the important clients of classes A and B, there is a large part of the population out of balance. As Velez points out:
Our mission is to bank all of Latin America. We want to take the services to 100% of the population and we need to be profitable for those who have a R $ 50 account or need a R $ 10 loan.
Nubank priorities in Latin America
When asked about his priorities in Latin America, the CEO says that Brazil is still the largest market, both in terms of the number of inhabitants and in GDP. However, Vélez is very interesting in the Mexican market. While in Brazil, 43% of the population uses credit cards, in Mexico only 10% use the service.
In addition, the CEO considers that traditional Mexican banks have a very plastered system. Being composed of a very young population, the CEO believes that the acceptance of fintech, with all its products and digital facilities, will be well accepted:
(…) Half of Brazilians are 33 years old and, in Mexico, half are 26 years old. Demographically it means that it is a young population, who has a smartphone, who uses Netflix, but continues 45 minutes in a row. In Colombia it is also similar. So, we’re super excited.
Vélez considers it important to bank more efficiently and attractively those who already have bank accounts (in traditional banks). For him, there are many fees, for few benefits.
With regard to those who do not have accounts, he intends to bank, providing access and facilities. For that, he believes he needs to expand Fintech’s product portfolio.
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