Although many fintech companies struggle to succeed within the first few years of their operations, Nubank startup has done that. It represents one of the more interesting fintech offerings and astonishingly is even managing to turn a profit.
Born2Invest’scompanion app collects all the relevant information about fintech, business, and finance news so that you can stay ahead of the curve.
Sources indicate that the Brazilian startup began to gain strength and became one of the leading forces in the global fintech space due to several actions of its general director David Veles.
It all started when David read about how mobile applications were being used to manage money in China in a new and different way. The mobile app offered consumers new ways to manage their money and also provided services, especially for non-banked companies.
This excited David so much that he and a few experts flew to China to test things out. They came back with some concepts that had been brought into reality in the form of Nubank.
The greatest fintech unicorn
Nubank is one of the world’s top fintech unicorns at the moment with the highest number of downloads for a FinTech company this year so far (about 18 million), 15 million customers (up 25%) and a valuation cost of about $10 billion. Nubank’s books are in the black, unlike many of its peers, who currently have a lot of red on their books, which is another point in favor of the company.
David Velez stated: “By being a technology company, you can provide access to financial services to hundreds of millions of people in a very efficient and inexpensive way.” “Financial services really can, eventually, touch 100% of the world’s population. The way to get there is to be a fintech”, added David Velez.
Need for technology investments
Fintech demonstrates a shift from traditional banking services that require an effective presence for efficient operations. On the other hand, fintech companies need huge investments in technologies and favorable conditions for their implementation.
For example, in Brazil and other developing countries, bureaucracy will not allow for the effective implementation of a system that can contribute to the growth of FinTech. That also allows real entrepreneurs who want to succeed to solve the problem of financial inclusion for everyone, especially for a society without a banking system.
Alipay business model similarity
Nubank’s business model is also similar to Alipay. It is currently managed by Ant Financial, which started as a digital wallet for Alibaba. Since then has been offering all-in-one services in the same mobile application.
David Velez has created what is likely to become a financial colossus in a decade, following Alipay’s existing internal investment strategies. One such example is the provision of paper savings accounts with government assets so that revenues and inflows are passed on to consumers.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Criptomonedas ICOs, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [++ KuCoin Affiliate Program Review]
This week, we answer the two questions on everyone’s lips — What do SJWs and e/accs have in common? And...
BIPV Boom: By 2032, Building Integrated Photovoltaics Will Be Worth Over $143B
The next moves by the European Commission and the trend toward a real estate stock composed of Zero Emission Buildings...
French Fintech Company Qonto Launches SME Financing in Italy
Qonto is expanding its financial solutions for SMEs and professionals in Europe, launching the option for companies in Italy to...
Trusters and Leone Investments Finally Receive Approval Under EU Regulation
After almost a month under the new EU Regulation, two platforms, including the historic Trusters launched in 2018 and the...
Coinbase Wallet Has a New Feature: Send Crypto via Web Link
The exciting part is actually in the small print: This is because Coinbase covers the fees for transactions via stablecoin...
Fintech2 weeks ago
How the Fintech Sector in Mexico Developed
Biotech4 days ago
Science Finances the Development of an Infrastructure for Advanced Therapies in Spain with €45
Crowdfunding1 week ago
Walliance Buys Lymo, the First French Real Estate Crowdfunding Platform
Biotech2 days ago
Sanofi Reaches an Agreement with Aqemia for $140 Million in Generative AI