Business

Brazilian Nubank expects to reach 30 million clients by the end of 2020

The fintech's strategy will focus on reinvesting profits with cards in customer base growth

Nubank card on a white background and coins. Nubank is a Brazilian company in the segment of financial services and digital bank. largest fintech in Latin America.
The Brazilian neobank Nubank started to distribute among its customers a feature to slip the amount spent with friends or relatives. Photo: Shutterstock

Nubank, the Brazilian fintech and decacorn well known for its purple credit cards has finished 2019 with 20 million clients, and doesn’t seem to be slowing down anytime soon. Expecting to reach 30 million clients by the end of this year, Nubank seeks to diversify its product portfolio as well as maximize profits of already established services. “It’s a choice. We choose to keep growing,” said Marcelo Kopel, new CFO of the fintech to Valor Econômico newspaper. 

Former high-level executive at Itaú, Brazil’s biggest bank, Kopel will bring its 30 years of experience in the financial sector to help Nubank enhance its operations, mostly when it comes to credit. “My mission, being a finance guy who has also knowledge about payments and cards, is to bring experience and help continue on the path of sustainable growth,” he explained to Valor

Valued at $ 10,4 billion, in its latest funding last year, Nubank raised $400 million – an investment that has been backing the fintech’s growth plans, as well as supporting new top-tier hirings such as Kopel, from Itaú, and Jag Duggal, previously from Facebook. In January, Nubank has also announced the acquisition of the consultancy service Plataformatec

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While the company bets on reinvesting profits with cards – an already profitable operation –  in customer base growth, the idea is also to diversify into other services. Nubank has been running tests on its corporate account, focused on small entrepreneurs, and other plans also include offering a credit line popular known in the country as “crediário” (installments with interests), the expansion of the personal loan operation launched in 2019, and expanding its investment options offer. 

The fintech, however, doesn’t plan to become a bank with a full offer of services. “The approach is from the outside in, offering things according to the customers’ needs”, Kopel explained. “That way we will gain relevance in people’s lives. “There is an audience for various value propositions and various businesses. Large banks will continue to have relevance, perhaps a little less,” he adds.

The first startup to be valued at $ 10 billion in Brazil, Nubank has recently expanded its operations into other Latin American markets, Mexico and Argentina. Regarding an expected IPO, the executive highlights that it is not a short-term project. “At some point, there may be a discussion, but it is not the priority now,” he says.