Equity

Nubank's CEO explains what the US could learn from LatAm fintech

Jun 28, 2023

David Vélez, co-founder and CEO of Nubank, a pioneer in Latin American digital banking, shares his insights on the region's unique fintech landscape. He discusses Nubank's journey to profitability despite economic challenges and highlights how Latin American founders differ from their U.S. counterparts. The conversation touches on Brazil's innovative payment systems and their impact on financial inclusion. Vélez also examines the future of digital banking, emphasizing the resilience required in the Latino market and the potential for transformative growth.

27:46

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Episode guests

David Vélez

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Episode notes

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Quick takeaways

Nubank's success lies in offering efficient digital services without physical branches, resulting in lower fees for customers.

NewBank strategically aims to disrupt the banking oligopoly in Latin America by prioritizing disciplined growth and adapting to volatile market conditions.

Deep dives

NewBank's Focus on Bringing Competition to Banking Oligopoly in Latin America

NewBank, led by CEO David Velez, has strategically aimed to disrupt the banking oligopoly in Brazil, Mexico, and Colombia by offering a fully digital banking experience. The company's success lies in providing efficient services without physical branches, resulting in lower fees for customers. By focusing on credit cards initially and emphasizing a customer-centric approach, NewBank has gradually gained profitability and scaled its operations over the years.

Intro

2min

Revolutionizing Banking in Latin America

12min

Exploring Payment Innovations and Financial Inclusion in Brazil

5min

Fintech Resilience in Latin America

7min

Future Prospects in Digital Banking and Fintech Growth

2min

This is our Wednesday show, where we niche down to a single person, think about their work and unpack the rest. Mary Ann is taking over today's interview with David Vélez, the co-founder and CEO of Nubank, the $35 billion Sao-Paulo, Brazil-based digital bank that offers credit cards, checking accounts and life insurance to consumers.

Equity listeners know that digital banking has been on our minds for some time now, so naturally we were excited to have David on the show. Here's what we got into:

How Nubank has achieved -- and maintained profitability -- in this challenging macroeconomic environment
How not only the LatAm fintech market differs from that of the U.S., but how founders in the region operate their businesses differently from their U.S. counterparts
The state of digital banks in general and how David sees banking evolving in the next few years from the lens of both a founder and former investor (he once led Sequoia Capital's Latin American investments).

Mary Ann and Alex are back on Friday with more Equity, but as always, you can keep up with us on Twitter @EquityPod.

For episode transcripts and more, head to Equity’s Simplecast website.

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Credits: Equity is produced by Theresa Loconsolo with editing by Kell. Bryce Durbin is our Illustrator. We'd also like to thank the audience development team and Henry Pickavet, who manages TechCrunch audio products.

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