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How largest Neo Bank generates $4.9 MRR per customer

Brazil’s Nu Bank, the largest #Neobank globally, recently filed to go public.

This has sparked curiosity in its business model.

How Nu Financial earned over 48M customers in Brazil, Mexico and Colombia, including 1.1M SMEs.

Nubank started off using credit cards as an initial wedge to acquire customers.

Today, Nubank offers financial products in diverse financial areas like Spending, Saving, Investing, Borrowing, and protecting!

Latin America is A market significantly underpenetrated, A concentrated sector with low innovation historically, And high costs to serve.

Nubank handles these challenges with a customer-obsessed approach.

Developing delightful mobile and digital-first customer experiences which are simple and integrated.

Encouraging employees to think like owners (76% of employees owning shares in Nu)


- Author of this article is Abhinav Paliwal CEO of PayNet Systems, one of the leading White Label Digital Banking and Payments Solution Provider. (

A culture of pursuing smart efficiency

Lower fees than the competition

They’ve been able to maintain NPS levels of ~90 as they’ve continued to scale!

Have amazingly low complaint volume (99% of the calls received were answered in less than 45 seconds)!

80-90% of customers are acquired organically through word-of-mouth.

Contrary to other banks, Nubank doesn’t charge many types of fees such as debit/credit card maintenance.

They earn basically from Interest Income (~55% of revenue) and Fees earned on the volume processed by credit cards and debit cards (~45% of revenue)

The bank generates revenue of ~$4.9 in monthly average revenue per active customer!

They’ve focused on acquiring customers more cheaply than incumbent banks and offering better pricing.

High-quality customer experiences get top priority

The bank is spending less than 5% of their total revenue on marketing, approx ~4X that on R&D in developing a great product, and ~3X that in providing great customer support.

So many leaves to pick from their strategy.


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