With over 4MM credit card customers, Nubank opens 1.5MM digital savings accounts in 6 months in Brazil

Date : 06/13/2018 @ 11:47AM
Source : PR Newswire (US)

With over 4MM credit card customers, Nubank opens 1.5MM digital savings accounts in 6 months in Brazil

Brazilian fintech's customer base is now the largest of any digital bank globally outside of Asia

After testing phase, digital account goes to market as the biggest alternative to traditional banks in Brazil

SAO PAULO, June 13, 2018 /PRNewswire/ -- Nubank, Latin America's leading fintech, began in October 2017 the testing phase of its digital savings account ("NuConta"). Having seen unprecedented demand for the product since launch with more than 1.5mm customers, today Nubank announces it is making the product available for any Brazilian resident with a smartphone.

"Nubank's mission is to bring new financial services alternatives to Brazilian consumers; alternatives that are simple, efficient, and that are able to cut through all the existing fees and complexity of the industry. As we did with our credit card product initially, NuConta is solving significant pains that millions of banking consumers in Brazil suffer today: large fees, low returns on investment, complex products and poor customer experience," says David Vélez, Nubank's founder and CEO. "The significant growth we have seen to-date proves we have hit a nerve."

Since NuConta's release six months ago, customers have saved up to R$300 million in maintenance and transfer fees, while getting returns on their money of up to 30% more than what they would get in most traditional banks. Nubank has transacted around R$4 billion in its digital account so far.

Continuous Improvements

NuConta launched offering consumers a no-fee digital savings account that offered up to 100% of CDI (Brazilian risk-free rate) on any monies deposited in the account, with immediate liquidity. NuConta also offered the option to send unlimited peer-to-peer transactions, as well as transfers to any bank account in Brazil with zero fees.

The initial six months of tests were crucial for Nubank to understand real customers' needs, and the Company has been announcing new features continuously since launch, such as the option to deposit via "boleto bancário" and ability to pay any utility and other bills.

"It's still early days for NuConta, as there are a lot of additional features and functionalities we want to launch over the course of the next few months. Our team is listening closely to customers' feedbacks to guarantee that we are developing the features that will be essential to them", assures Vélez.

In February, Nubank raised a US$150 million Series E round led by DST Global with participation of existing investors Founders Fund, Redpoint Ventures, Ribbit Capital and QED Investors, and new investors Dragoneer Investment Group and Thrive Capital. Since it was founded, in 2013, Nubank has raised almost US$330 million in six investment rounds.

About Nubank

Nubank is the leading financial technology company in Latin America. Its first product, launched in 2014, is a no fee credit card that is fully managed by a mobile app targeting Brazil's vast millennial population. Over 16 million people have requested the product since launch and the company passed the 4 million active customer mark in 2017. In 2017 Nubank also launched its proprietary loyalty rewards program ("Nubank Rewards"), as well as a digital savings account ("NuConta") that currently is under beta testing for existing credit card customers. To date, Nubank has raised almost US$330 million in six equity investment rounds from Sequoia Capital, Kaszek Ventures, Tiger Global Management, QED, Founders Fund, DST Global, Redpoint Ventures, Ribbit Capital, Dragoneer Investment Group and Thrive Capital. Recently, Nubank was ranked no. 3 in Latin America on Fast Company' Most Innovative Companies ranking. More information at www.nubank.com.br

Cision View original content:http://www.prnewswire.com/news-releases/with-over-4mm-credit-card-customers-nubank-opens-1-5mm-digital-savings-accounts-in-6-months-in-brazil-300665746.html

SOURCE Nubank

Copyright 2018 PR Newswire

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