I liked the analysis! A geographical expansion of Nubank seems like it will not go through the United States (as the Brazilian Inter and Revolut did), a country that already has a consolidated market and limited card interchange fees. Although there is a large flow of remittances from the US to LATAM, the 'credit first' model seems to have more adherence in emerging markets.
You're absolutely right - Nubank is smart to stick with emerging markets instead of tackling the US. Their "credit-first" model works because these markets have large underbanked populations and less competition, unlike developed markets with established players and tighter regulations. Why reinvent the wheel when you can replicate a proven playbook in similar contexts? Nubank can leverage their existing expertise in financial inclusion rather than fighting uphill battles in saturated markets.
Also remembering that Nubank has a small stake in the Indian neobank Jupiter. https://techcrunch.com/2021/08/05/nubank-co-leads-45-million-investment-in-indian-neobank-jupiter/
Oh wow, great find! I didn't know this.
India is a very difficult market, but similar to its Tymebank investment, Nubank is smart to take a piece of Jupiter without taking operational risk.
I'd love to have an update about this investment.
I liked the analysis! A geographical expansion of Nubank seems like it will not go through the United States (as the Brazilian Inter and Revolut did), a country that already has a consolidated market and limited card interchange fees. Although there is a large flow of remittances from the US to LATAM, the 'credit first' model seems to have more adherence in emerging markets.
Thank you for that insight, Davi!
You're absolutely right - Nubank is smart to stick with emerging markets instead of tackling the US. Their "credit-first" model works because these markets have large underbanked populations and less competition, unlike developed markets with established players and tighter regulations. Why reinvent the wheel when you can replicate a proven playbook in similar contexts? Nubank can leverage their existing expertise in financial inclusion rather than fighting uphill battles in saturated markets.