Brazil’s Nubank aims to triple Brazilian clients, boost profitability

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SAO PAULO — Brazilian digital bank Nubank

plans to triple its client base in Brazil organically by

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focusing on areas in which it can be competitive, Chief

Executive David Vélez said in an interview with Reuters on


Vélez also confirmed the fintech’s interest in acquisitions,

two weeks after hiring former Inc executive

Alex Ceballos to lead a new mergers and acquisitions division.

Vélez said acquisitions should target complementary

businesses, but noted that Nubank does not want large deals and

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sees organic growth as its main driver.

Nubank has been gradually increasing its offerings,

including digital accounts, insurance and investment products.

Revenue per client rose 105% in the second quarter compared

to a year earlier, Vélez said. Over the last 12 months, the

number of clients rose 51% to 62.3 million, including 50 million

who remain active.

Vélez said Nubank has the potential to triple the number of

clients, reaching a larger portion of Brazil’s 215 million


While Nubank plans to increase its assets, the CEO said that

could be done through partnerships, such as having Creditas

offer auto loans or mortgages to Nubank clients.

Nubank will avoid areas where it is not competitive, Vélez

said, such as corporate services, and it does not want to expand

beyond Brazil, Mexico and Colombia.

Velez said as Nubank has much lower costs than the large

banks it competes with, “the goal over time is to have return on

equity much larger than they have.”

(Reporting by Aluisio Alves; Writing by Tatiana Bautzer;

Editing by Richard Chang)

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