At the night before the case competition presentation, we visited the 5th biggest credit card company in Brazil – Nubank. Nubank has born for 5 years and unlike the traditional bank, it offers only the credit card related services for its customers. Based on Four pillars: Technology, Design, Data Science and Customer Experience, Nubank aims to eliminate complexity and empowers customers to take control of their own finances. Nubank develops its users’ system based on 100% digital platform- the phone application, and it also contains the core technology of Nubank users’ system.
The main focus of the service in Nubank is the customers experience and it’s how the company representative explained the main reason why Nubank can stand out from so many small banks in Brazil during such a short time. There are various measures for Nubank to improve users’ satisfactions. For example: they provide users multiple channels to conduct credit card consulting, inquiring and handling services since users can use twitter or facebook instead of the traditional bank counter services which will cost lots of time. The mobile algorithm developed by Nubank can help users finding everything they need without extra paperwork or inefficient call. Nubank also launches a reward program called “NuConta” that awards points for users that can exchange for airplane tickets or other benefits. Besides, Nubank is a diverse company which has international connections with over 25 nations.
Since Nubank does not has its own capital sources (all of the funds rely on other banks), it faces a high risk of shortage of funds. It may explain the reason why the main users of Nubank are smaller than 35 years old and are at high-income level. These users can ensure the least default risk of Nubank. After the company visit, Genti, Lexi and Agnes expressed their own ideas towards the future development of Nubank. There are three main ideas that we think are important: Nubank should deepen its innovation at one point instead of expand to many different points since the service of Nubank is only credit cards, the development of one field is the best suited to its perfection; Nubank should corporate with other companies to widen its services on credit card like provide more rewards benefits to attract more users; Nubank should developed more creative technologies to maintain its advantage of efficient and convenient services.
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