Nu, the holding company that includes Nubank in Brazil, as well as Nu México and Nu Colombia, added 5.8 million customers in the last quarter, reaching a total of 53.9 million customers in Brazil, Mexico, and Colombia – of these, 41.1 million are considered to be monthly active customers. The largest digital bank in Latin America estimates that more than 55% of its active monthly customers have chosen it as their main account.
The company also saw its average revenue per active customer grow from $3.3 in Q4 2020 to $5.6 in the last three months of 2021 while reducing the average monthly cost of services per active customer by 20.4%.
According to Guilherme Lago, CFO of Nubank, this is the formula behind the neobank‘s revenue generation potential, and it is working. The combination of engagement – Nubank is a global example of brand building, reaching a 90 NPS – and new products, designed for each market, alongside partnerships, is bringing more loyal customers to Nubank, he told participants of the company’s earnings conference call this Tuesday.
On the partnerships frontline, Nubank already has over 20 partners on its recently launched marketplace and expects to see this number grow, but carefully choosing what kind of product fits customers’ needs. Among these partners is Brazilian retailer Magalu, Chinese e-commerce behemoth Shopee, and LatAm’s lending unicorn Creditas.
Lago also told analysts that he believes that the following cohorts of customers are likely to engage and actually use their Nu accounts faster than the first customers of the digital bank. Every active customers uses 3-4 products of the neobank.
With this, the neobank also managed to reduce losses compared to last year. Latin America’s most valuable fintech, which debuted on the NYSE in December, posted a net loss of $66.2 million in the fourth quarter of last year, down from a loss of $107.1 million a year earlier.
Overall, analysts are concerned with Nubank’s performance as its default rate could deteriorate amid higher inflation and interest rates – Nubank’s consumer lending delinquency rate remained roughly stable at 3.5%, up 0.1 percentage point from the previous quarter.
Nubank did not want to offer market guidance concerning its customer base. Lago, however, pointed out that neobank expects to continue growing its customer base and at a pace even more in the new markets – Mexico and Colombia – than in Brazil. According to him, Nu Mexico gained 1.4 million customers in December alone, and the company estimates that it is already the largest issuer of credit cards in the country.
“Somewhere around 2019 and 2020, we began to break the early-adopters prevalence. As we are de category’s leader, we’ve seen people getting to us before any other alternative. This is also allowing a more robust value proposition, They are coming because is a better experience combined with lower costs.