Nubank

“I think it comes from them. Because first, they're still founder-led, or Revolut, also. They're still founder-led. Those founders are pushing the boundaries of all of this. They are at an age, and they are at a place, and if you talk to them, they're still as …”

“Our first success ended up being with a company called Nubank, biggest bank in Brazil, you know, by market cap at the time, and the use case was like one of these big migrations, and we had a kind of a custom Devon that was like extremely, extremely optimized …”

“Well, so NewBank, I mean, the first one, honestly, our entire team was the Ford deployed team. Like we all flew to Brazil.”

“And that has resulted in Revolut already having, like, 40% ROEs, which are higher than a new bank.”

“They're going to enter the U S it's a good bet. They've still got David at the helm. They're growing 28% year on year. I think we, I think new banker incredibly solid.”

“He sends me an email, which was like, hey, Sebastian, would you like to, like, advise me a little bit? I'm starting this new company. And I was like, I'm sorry, I don't have the time. So I lost out on a lot of, a lot, I would have been a great angel investor t…”

“I think I have to go with David. Because I think, ah, Nick's challenge right now might be that he is so distributed. I mean, he's trying to go for the whole world, right? I mean, he's launching in Dubai. He's launching in India. He's launching everywhere. You …”

“Iterate on product faster, have better engineers, and I think that those banks are going to increasingly take market share.”

“One of the best investments I've ever made is a company in Europe called Trade Republic. It's actually better than Nubank on any metric, actually.”

“In LATAM, they were old, they were stodgy, they weren't serving their consumers, and they were, these guys came in over the top, and they didn't just build a deposit base like Chimebill, they've done the whole, the full monte, they do deposits, they do lending…”

“If they can continue to do what they're doing and avoid doing dumb bank stuff, yeah, you could see a two x from here, which would be wow, which would be, you know, just a wow outcome.”

“It's clearly like the future has already arrived in other countries. You just need to go and look, you just go to Latin America with new bank, you go to, and like, there's a ton of other great ones in Latin America. You look in Europe, it's happening. So to me…”

“Brazil has not shown pathways to liquidity at scale. They've shown new bank and everyone says new bank. It's one in 20 years.”

“So we got a banking license in Mexico, a head of new bank.”

“Every new product at new bank they build before they launch it, they wait for a 50% threshold for people to say, 50% of people would be disappointed if this product did not exist as they're developing it. And only then do they launch it publicly.”

“They have like a 90% retention rate, like over 24 months.”

“I think they have like a hundred million active users nowadays.”

“I think they made nearly a billion profit last year or something.”

“Revolut is growing fast, but Nubank is growing even faster.”

“NewBank is bigger than Coinbase, Robinhood, Affirm, SoFi, and Lemonade combined.”

“80 to 90% of NewBank's growth is through word of mouth.”

“Three new bank has more customers than bank of America, which is one of the four big banks in the U S while also only operating in three countries in Latin America.”

“The large incumbent Brazilian banks were amongst the most profitable in the world. They were also amongst the most hated in the world.”

“Because if you can't tell me in two paragraphs why the customer you're building this for should care, then it's still work to do.”

“For us, our threshold isn't 40%. We've generally moved it up to 50%. I don't believe we have product market fit. Unless 50% of Brazilians are telling us they would be very disappointed because Brazilians are inherently polite more, more polite and more optimis…”

“There are been, for example, in Mexico, we've recorded an NPS when we launched the first couple of years of 9495. Right. So yeah, which is way better than we got in Brazil, but our NPS scores skew in the seventies, eighties, and occasionally nineties.”

“We're now over ten million monthly actives on that product when we were struggling in the hundreds of thousands about 15 months ago.”

“We've told many of our product managers and designers over the last two years, don't worry about serving a thousand customers, taking three weeks serving a thousand customers, getting a bunch of crosstabs, or even at the end of which it's very hard to read the…”

“The pressure on the line product manager to scale the product that the entire company, the entire executive team, the entire management chain has been counting on. We're launching this thing. We all wanted to scale. We all are very excited about it. We had the…”

“When you have a big app like new bank or places like Google and Facebook, you can make any product look great for months, if not years, because you have such a large customer base, you can always get them to try it with all sorts of basic techniques, but you'r…”

“The anecdote usually trumps the data. And there are many times when I see teams that are, you know, doing very sophisticated analysis and they've sort of forgotten what the question is or what the conclusion they can draw from it truly is. So never lose sight …”

“Our hypothesis is it's not surprising that that artifact, that that product is not made for the modern customer. That it is easier for me to share a Spotify playlist with my wife or my daughter than it is for me to share a savings goal just mechanically. So we…”

“Again, it goes back to only fundamentally different gets customers to tell their friends.”

“Unlike almost everywhere else in the world, including in the U S where the answer was, we're going to do the bank account first. New bank's answer was no, we're going to do credit first. And credit is. 10 times harder and a hundred times more risky because you…”

“About half of our 90 plus million customers are now we are the primary relationship.”

“We are trying to build what we believe is the first global bank on a single code base.”

“There was actually a moment a point when there was a risk because of some regulatory issues that were happening in Brazil in 2016, where there was a chance that new bank would have to shut down. And it turns out the central bank our customers called the centra…”

“I passed on Nubank because of the price at the beginning, when we started the fund and it was the wrong decision because the opportunity was huge.”

“Nubank, for example, which is a business and a management team that we admire, building one of the most attractive digital banks, not just in Brazil, where it's a leader, but really when you're stack ranking it up globally, and they have a very disciplined fra…”

“We're getting to a point where almost 50% of the Brazilian adult population is a customer of Nubank.”

“My interviews today are not interviews about career experience. They, all the interviews, when I interview somebody that's a newbie, it's all about character traits.”

“That was an insight that I took to Novak, and that was a foundational insight around the culture that we have today, where we want to treat everybody as a partner. Everybody needs to feel that they have a seat at the table, the youngest, The oldest, the person…”

“I do think now that the kind of the setup for more new banks in the region exists. And you'll see them over the next five to 10 years.”

“When we go to these three countries, Brazil, Mexico, and Colombia, we go after big markets where we see a path to be Probably the largest financial institution in each one of these countries eventually, because we are the primary bank account and we become the…”

“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…”

“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.”

“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…”

“We started the business in a very small house in Sao Paulo. We paid, I remember the partner of Sequoia, Michael Abramson was there. His mind was blown when I told him we paid 500 dollars per month in rent, and we had 20 people working out of the house.”

“We under-celebrate. Some people complain that we don't celebrate enough. And they're probably right, but you know what, that's probably a feature at the end of the day, not a bug.”

“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.”

“By now we have one of the largest digitally native consumer platform, consumer basis in Latin America with eighty five million customers.”

“We have several million daily active users today on, on our marketplace where our customers are Consuming or buying goods or services from over 180 different partners”

“We're not the e-commerce. We don't want to be the e-commerce. We don't want to get into logistics, but we are a platform that cross sells all our products to these consumers.”

“We allocate today about 80% of all resources and energy to financial services, so that core continues to have most of the allocation of resources.”

“Today we can serve customers that need a 50 dollar loan profitably. We can serve customers that have 200 dollars to invest Profitably.”

“So I don't think you need to own the model, but I do think you need to own And be very thoughtful around how do you, what are the incentives and what is the objective function of that algorithm when you start actually programming it.”

“We like to hire people that have this ability, that has more questions than answers, that are able to look at a problem with a bunch of questions versus the traditional experienced persons that have been doing it for 30 years, And therefore I know the answer. …”

“We were very deliberate around the type of people that we attracted, my co-founders, and how we picked them, and how we spent a lot of time trying to find them, the values that we set up, the way we organize ourselves, we put all our values in a culture deck. …”

“I think the, perhaps the word decision from a product and kind of strategy perspective has been entering investments. When we enter investments via a big acquisitions, we enter via an acquisition versus organically, and I think we underestimated or I underesti…”

“I think this means a bias, even a bigger bias to build organically versus an M&A driven strategy as we think about the next five to 10 years of growth in the business.”