Brazil’s Nubank storms to 1.5m digital account openings
Brazil-based challenger Nubank has got 1.5 million customers signed up for its digital savings account (“NuConta”) over the last six months.
As reported in October, Nubank started to offer these accounts in addition to its credit card business. The move was designed to provide access to billpay, account-to-account transfers, and the ability to earn more in interest than is available with a regular savings account.
Now the bank is making its product available for any Brazilian resident with a smartphone.
David Vélez, Nubank’s founder and CEO, says: “The significant growth we have seen to date proves we have hit a nerve.”
According to the bank, it has transacted around BRL 4 billion ($1 million) in its digital account so far, with over four million credit card customers on its books.
NuConta works by offering a no-fee service with up to 100% of CDI (Brazilian risk-free rate) on any monies deposited in the account, with “immediate liquidity”. NuConta also offers 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 saw the bank add new features, 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”, adds Vélez.
As reported in April, Nubank received $150 million in new funding in a round led by DST Global Investment Partners.
In addition to its equity capital of $330 million, Nubank received a $137 million line of credit from Goldman Sachs last year.
The company won regulatory approval to operate as a bank in January.