This is absolutly the most thorough Nu analysis Ive ever read. The four pillar framework is brilliant, especialy the Cost to Serve breakdown showing $28 vs $218 for Itau. That 8x differenc is brutal and basically unrecoverable for incumbents. The part about FIDCs for 35% of funding is fascinating, I didnt realize they were accessing institutional capital markets that directly. One counterpoint though, the incumbent response section shows Itau migrating 60% to AWS and building 1,300 AI models. That investment could narrow the gap faster than expected. The 15,338 customers per employee metric is insane, but if Itau can automate with AI their 82,000 employees could become way more productive. Still, the platform economics argument is convincing, especially the viral growth creating a compounding moat.
Thanks so much! I put a lot of work into this one, so really appreciate you taking the time to read and share your thoughts.
The Big 5 comparison is exactly the bridge Wall Street needs – most traders don't fully grasp how dominant Nubank is in Brazil, so anchoring it against familiar benchmarks should help them separate signal from noise.
This is absolutly the most thorough Nu analysis Ive ever read. The four pillar framework is brilliant, especialy the Cost to Serve breakdown showing $28 vs $218 for Itau. That 8x differenc is brutal and basically unrecoverable for incumbents. The part about FIDCs for 35% of funding is fascinating, I didnt realize they were accessing institutional capital markets that directly. One counterpoint though, the incumbent response section shows Itau migrating 60% to AWS and building 1,300 AI models. That investment could narrow the gap faster than expected. The 15,338 customers per employee metric is insane, but if Itau can automate with AI their 82,000 employees could become way more productive. Still, the platform economics argument is convincing, especially the viral growth creating a compounding moat.
Thanks so much! I put a lot of work into this one, so really appreciate you taking the time to read and share your thoughts.
The Big 5 comparison is exactly the bridge Wall Street needs – most traders don't fully grasp how dominant Nubank is in Brazil, so anchoring it against familiar benchmarks should help them separate signal from noise.