The Ledger
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Velez: Nubank is the primary bank for nearly 30% of adult Brazilians
“So if we have 50% of the population and 60% of primary bank account, we have already close to, we have the primary bank account for close to 30% of adult Brazilians. Which, by the way, is now the highest among any bank in Brazil. We are now the most often, mos…”
Velez: Nubank's Mexican credit card achieves world-leading 94 NPS
“The highest-rated-NPS consumer product in the world in any category is our purple, is Nubank's purple credit card in Mexico. It's a 94 NPS.”
Velez predicts major neobank consolidation as consumers reduce financial apps
“Customers will have less apps in their phone, not more, and they will not have five banking relationships or 10 banking relationships or five different wallets. So I would expect a significant consolidation of that over the next few years”
Velez: LATAM stock exchanges remain dominated by century-old incumbents
“About 25, 30% of companies in the Nasdaq today didn't exist 23 or 30 years ago. If you look at Ivo Vest by Brazil and Mexico, there's still incumbents that existed a hundred years ago. So the opportunity for disruption, a lot of these markets exist today.”
Velez: Nubank is redefining itself into a broad consumer platform
“We're in the early days of using these eighty-five million digitally only consumer base to build a marketplace to go beyond financial services and enable our customers to access non-financial services products. So this is almost a redefine of what Nubank is. M…”
Velez: Brazilian consumers face 450% APRs and massive banking concentration
“When you go to Brazil and you see customers paying 450% APRs and paying a ton of different fees and waiting four months to open a bank account, or you go to Mexico and you see five banks owning 90% of all the assets of the system, the pain is 10 X where you mi…”
Velez: Almost 50% of Brazilian adults are Nubank customers
“We're getting to a point where almost 50% of the Brazilian adult population is a customer of Nubank.”
Velez: Nubank's Brazilian market penetration exceeds JPMorgan's in the US
“I don't think JP Morgan can say that about customers of theirs in the US.”
Velez: Sequoia interviews job candidates top-down, starting with firm leadership
“The first thing that came to mind was the first interview was with the head of the firm, not with the youngest analyst. In most firms, you start from the bottom, and then you go up, and Sequoia is the opposite. You go from the top, and then you go down, and yo…”
Velez: Nubank holds 15% credit card and 5% personal loan market share
“In credit cards, we have about 15% market share, but in personal loans, we have five percent market share. In investments, we have about two percent. In insurance, we have one percent.”
Velez: Nubank reaches 85 million customers in Latin America
“By now we have one of the largest digitally native consumer platform, consumer basis in Latin America with eighty five million customers.”
Velez: Branchless digital banking lowers cost-to-serve by 20x to 50x
“The moment we don't need to put a banking branch in every quarter, the cost to serve a customer goes down by 20 to 50 X. The cost to serve somebody goes close to zero.”
Velez: 15,000 Nubank customers tweeted at Brazil's Central Bank during 2017 crisis
“Monday morning, there were 15,000 customers on Twitter of the Central Bank of Brazil saying, you cannot do this.”
Sequoia Capital spent two years evaluating Brazil before deciding against a fund
“After two years before Sequoia, where we all kind of came to a set conclusion that we didn't want to really start a business in Brazil, which meant I was, Doug wanted me to go back to California and helping them think, invest globally”
Nubank achieved profitability and positive cash flow in Brazil by 2019
“By the time we had that conversation again, in 2019, we were profitable in Brazil. We were cashflow positive. We have great product market fit. We are banking licenses. We were fully funded on deposits.”
Nubank's savings product grew larger than its original credit card business
“And product number two for us Which is savings is way bigger than product number one for us. And product number three is going, is growing faster than product number two.”
Velez: Latin America's GDP per capita is three to five times India's
“Latin America as a region is the third largest GDP in the world. It's a region that has six hundred fifty million people, very large GDP, a GDP per capita that is three to five x India,”
Velez: Financial services holds the largest market cap in Latin America
“Financial services is the single biggest market cap in the region.”