NU (Nu holdings )

What do you think about NU ? **Busisness overview**  Nu is a digital bank based in LTAM currently opperating in Brasil, Mexico and Colombia.  At Q3 2025 Nu had 127 Million of costumers  Brazil 110,1 Millions (Second place by number of costumers)  Mexico 13,1 M (Not yet in the top, Top 1 BBVA Mex 30 M of Costumers)  Colombia 3,8 M (Not yet in the top, Top 1 Bancolombia 14M of Costumers)  **NU Strategy**  **Steal market share of legacy banks**  The LATAM banking landscape has historically been dominated by legacy banks, whose growth strategies depend heavily on branch expansion and mergers and acquisitions. Hence, the legacy banks have a high cost structure they need to pass their costumers.  Fr. In Colombia users are used to pay something like (At PPP)  80 USD monthy fee to use their credit cards.  As a fully digital bank, Nu is able to significantly reduce G&A expenses by eliminating physical branches, enabling rapid expansion and further cost efficiencies through technology. These savings are passed on to customers. For instance, while traditional savings accounts typically offer close to 0% interest, Nu Colombia currently offers an annual yield of 8.25% More benefits -> More costumers -> More revenue -> More operating leverage -> More benefits  **Oppen new markets**  Likewise, the LATAM banking sector has historically been characterized by a large unbanked population. Beyond capturing market share from legacy banks, Nu has identified a significant opportunity to bring these unbanked individuals into the formal financial system. **NU Growth sources**  NU primary source of growth is the expansion of their costumers base, followed by the increase of the monetization per costumer.  Two metrics to monitorate : ARPAC, total number of costumers, and % of active costumers  Nu migth have operatinal leverage, due to its digital nature, hence if it increases its scale the G&A cost as a % of the total revenue migth decrease  Third metric to monitorate : Average cost per active costumer