NAME ROLL NO

Aayushi Srivastav PGP23168

Chetali PGP23183
Himansh PGP23054
Shubhankar Bagchi PGP23175
Vibhuti Mehrotra PGP23147

Group – 5
• Nubank is the largest Fintech in Latin America. It is a privately held
company which deals with Financial Services.
• Nubank has also got an engineering office in Berlin and Mexico City
and is headquartered in São Paulo, Brazil. The company provides a
credit card to the consumers which can be controlled with the help of a
phone 24x7.
• Nubank is one of the largest digital bank in the world, with a customer
base of more than 35 million.
• Nubank is a platform that processes, issues, transfers and administrates payments
related to post-paid credit cards. The company has launched a digital account
named 'NuConta’.

• NuBank is a brazil-based financial technology bank that has taken over Latin
America with plans to expand into the rest of the world, soon the online bank has
absolutely no traditional banking branches and operates through products like the
new Conte their digital banking accounts along with a no fee low-interest
international credit card that customers can use directly on their smartphones.

• The Nubank app allows users to track their transactions in real-time block their
card in case of an emergency application for a limit raise contact customer support
and carry out pretty much all kinds of banking activities with the click of a button
right from their phones this has helped Nubank boost financial inclusion in Latin
America where most people do not have access or knowledge of traditional
banking methods
Nubank was clear from the beginning: "We are a technology company,
it is in our DNA, not a bank." And it is based on 4 pillars, which Vélez
himself explains:

• Technology: Developing all of our technology at home is one of our competitive

advantages. It should not be outsourced.

• Design: The consumer suffered because of the complexity, he had to do a thousand

processes, calls, visits and so on, banks held customers hostage. Therefore, simplification
and transparency are the differential. (Hence its name: 'Nu' in Portuguese means naked,
without clothes).
• Data science: Use and make the most of the information. We saw as a deficiency that in
the Brazilian financial sector there was little data to make decisions. In fact, at this point
Colombia is ahead of Brazil.
• Experience: Always improve it. For example, if the customer has to call the bank, they
will respond immediately. That they are not limited to office hours, much less that they
feel ignored.
 Nubank - Founders and Team

The founders of the company are David Vélez, Edward Wible and Cristina
Junqueira.

• David Vélez is the founder and the CEO of Nubank. He was a board member at
Despegar.com. He was also a partner at Sequoia Capital. He was the senior
associate at General Atlantic. He began his career as an analyst at Goldman Sachs.
He pursued his education from Stanford University.
• Edward Wible is the founder and the CTO of Nubank. He is a graduate in
Computer Science from Princeton University.
• Cristina Junqueira is the co-founder of Nubank. She began her career from
Boston Consulting Group. She has got a bachelor's and a master's degree in
engineering from the University of Sao Paulo.
 NuBank - Business Model

The company offers the customers a low interest and a no-fee credit card which can
be managed with the help of Android and iOS. Users can track and control their
purchases with the help of this platform.
 Nubank - Revenue Model

• Nubank makes money with the help of the credit card the company provided to
its users. Whenever a purchase takes place through the credit card, the
organization pays a small percentage of money through the Mastercard network.
In case a customer decides to pay the bills in instalments, the company receives
interest.
 Nubank - Funding and Investors

Nubank has raised a total amount of $1.5 billion in funding over the 11
funding rounds.
 Nubank - Growth
• NuBank has already experienced growth in the first half of 2020 because during
the pandemic many consumers turned to online mode.
• The company saw a 48% of increased revenue growth from December 2019
onwards. During that time, the number of transactions got doubled on the
platform.
• The customer base now stands at 35 million customers in brazil in 2020, which is
more than double compared to 2019. According to the reports, NuBank receives
an average of 41,000 new users a day. On plans of International Expansion the
company stated that it will soon start its operation in Columbia. .
 Acquistions

• In January 2020, Nubank made its first acquisition by acquiring

Plataformatec, a company that specialized in software engineering and
agile methodologies.

• In September 2020, Nubank acquired Easyinvest, an investment broker

also from Brazil for an undisclosed amount.
As with any digital bank, Nubank has some upsides and some downsides. But, being
such a huge financial institution in Latin America, it surprisingly doesn’t have many
things going against it. Here are the pros and cons of Nubank Brazil.

PROS CONS

• Almost no fees • Data Breach

• Free credit card • Algorithm Breach
• Free business and personal • Completely rely on the
accounts Internet
• Instant money transfers • Limited Product Offering
 Who can open a NuBank account?

To open a Nubank banks account, you have to be a resident of Brazil, have a

regular CPF status on the Receira Federal Brasileira, and be older than 18.
Nubank is also available in Mexico and Colombia.

How to open a Nubank account?

• You can open a Nubank account in minutes by visiting the Nubank website or by
downloading their app on the Apple App Store or on Google Play. There are no credit
checks when opening an account and the only thing that is performed is the enrollment
analysis.
• To open a Nubank business account, tap the Settings icon and select the “Conta PJ”
option. The business account is only available for existing Nubank customers that are
sole proprietors, individual entrepreneurs, and self-employed professionals.
 PERSONAL ACCOUNT
• Free of charge
• Earns interest
• Direct debit
• Easy to pay bills
• Free debit card
• Free and unlimited transfers
• Nubank personal account, formerly known as NuConta, is a checking and savings account in one.
All your deposits earn you a daily interest at 100% of the Interbank Deposit Rate.
• The interest paid by Nubank is copounded.
• You can get a free debit card with your Nubank account if you apply for one. Access ‘Settings’ in
the app and select ‘Pedir função débito’. Your card will be ready in no time and you can use it with
both credit and debit uses.
 BUSINESS ACCOUNT
• Open to small business owners
• Sole proprietors,
• Individual entrepreneurs,
• Self-employed professionals
• Have to be an existing Nubank customer
• No annuity or monthly fees
• Free and unlimited transfers to any bank
• Pay bills, business taxes, and fees
• Nubank’s business account is a rather new feature that is open only to existing Nubank customers that
are sole owners or freelancers. It makes it easy to open an account and separate personal from
business transactions. You do everything from one app with transparency and no paperwork.
• The best thing is that it’s free and has a range of methods to make and receive payments and to send
money to others or to pay bills and taxes.
 TYPES OF
CARDS AVAILABLE

DEBIT METAL
CARD CREDIT CARD
CARD
 DEBIT CARD
• The debit card is the most
straightforward one but you need to
apply to get it.
• It is completely free, though and it
works differently than a credit card.
• With a debit card, you can only spend
what is on your payment account. You
can’t go into debt.
CREDIT CARD
• Next up is the credit card. It’s sleek and
purple with a vertical design that only
displays your name
• You can choose your credit card limit in
the app as well if you feel like you
should scale back on spending a bit or if
you need more money at your disposal.
Also, if you pay your instalments early,
you get a discount.
 METAL CARD
• If you’re looking for something special, you can get a new ultraviolet
credit card that’s made of metal. Nubank is certainly following in
Revolut’s footsteps with this feature.

• The bad thing is that you’ll have to join a waitlist to get it.
 What are the benefits of this cool-looking
card?
• Travel medical insurance
• Baggage insurance
• VIP lounge access
• Free WiFi at any airport
• Double warranty on all products
• Purchase protection
• 1% cashback
• As a curiosity, I have to mention that if you don’t redeem the cashback
from your account, it will continue to grow at 200% of the CDI.
 Loans
• Nubank offers loans at fair rates.
They’re also fully transparent about
when and how much you’ll have to pay,
even offering simulations so you can
see when you’ll have to pay before
taking a loan.
• Loans are still a new feature to the
NuConta account, so not everyone will
be eligible. Still, if these are rolled out
more widely, they are bound to be
popular.
Term Life Insurance
• Life insurance has also stepped into the
insurance game with their Nubank Vida
life insurance. To apply for it, you need to
be a Nubank customer.
• You pay a monthly amount that starts at
R$9 per month and if something
unforeseen happens, you or your
beneficiaries, receive the contracted
amount, which can reach up to
R$150,000.
• In the event of death, your beneficiaries
should quickly receive the full amount of
the coverage, exempt from Income Tax.
• The insurer responsible for Nubank’s life
insurance is Chubb, one of the world’s
biggest players in the insurance industry.
 Mobile app
• Like most digital banks, most of your banking with Nubank will be
conducted via its app. This app is easy to use and well designed,
providing a perfectly convenient platform to fulfil all your banking on
the go.
• They recently launched a redesigned look that does feel different. If
you’ve only ever used the old app, it might take some time to get used
to the new layout.
• But, changes had to be made to accommodate the new products: the
Nubank account, Nubank Rewards, and the business PJ account.
 Instant payments
• Instant payments are called Pix. With Pix, you can make the fastest
and the most practical money transfers between different banks and
financial institutions for free.
• The transfers are almost instant and all you need is a Pix key to send
or receive money. No need for bank details.
• Simply use CPF or CNPJ, a phone number, email, or random key as a
Pix key.
 How is Nubank regulated?

• Nubank is licensed by MasterCard to issue credit and debit cards

within their network in Brazil. Nubank got its full banking license in
2017 after several years of not being able to get one.
 Is my money safe with Nubank?
• Until June 2019, the Nubank account had no FGC coverage because
the deposited money was invested in government bonds. In other
words: all the money deposited was invested in government bonds and
offered a yield of 100%.
• With the launch of the investment option in RDB, in June, the Nubank
account is now covered by the FGC – as the RDBs are in the fund’s
range of coverage. This means that Nubank account customers who
choose to make deposits in RDB rather than government bonds are
covered by the FGC.
COMPETITORS
• It also offers a fee- • It also has a credit • It was founded in
free digital bank card with no annual 2019 by former
account with free fees, free Pix money partners at Banco
money transfers, a transfers, emergency BTG Pactual, Latin
credit card with no overdraft, but also America’s largest
annual fee, and with personal loans with independent
free withdraws in rates starting at investment bank. C6
any Banco24Horas 2.90% per month. already has 7 million
ATM network, customers by some
something that accounts. They offer
Nubank doesn’t free personal and
offer. business accounts.
 How Does Nubank Make Money?
• Nubank makes money via interchange fees, interest on customer deposits,
overdraft fees, ATM withdrawal fees, subscriptions, referral fees, interest from
loans, as well as insurance premiums.
• Its business model is predicated on creating an ecosystem of products that it can
offer to its customers. Many of the world’s biggest FinTech companies, such
as Robinhood, were launched with the goal of improving one particular customer
pain point (in the case of Nubank high interest rates and access to bank accounts).
• Over time, as these companies managed to onboard millions of users, they began
to expand their offerings. Nubank, for instance, has now moved into business
accounts, insurances, personal loans, or cashback rewards.
• Much like Amazon, these products end up creating a flywheel effect for the
company. For instance, Nubank is able to use its customer’s spending or salary
data to more accurately determine how much interest it should charge on a loan.
The customer, on the other hand, also benefits by being offered an optimized (and
likely cheaper) interest rate.
 Interchange Fees
• Whenever a customer uses their Nubank-branded debit or credit card
to make a payment, a so-called interchange fee is being applied.
• The interchange fee is being paid by the merchant that receives the
payment, for instance, a restaurant or clothing store.
• Interchange fees come out to about one percent of the purchasing
price. That fee is then to be shared with Mastercard, the issuer of its
debit card. The actual percentage share is not being disclosed to the
public
 Interest On Cash

• Whenever customers deposit money into their Nubank savings

account, they can earn interest on the funds held in that account.
• Nubank, just like any normal bank, then uses that cash to lend it out to
other institutions, such as said banks. The company will then collect
interest on the money that it lends out
 Overdraft Fees

• Another source of income for Nubank is the overdraft fees it charges

whenever a customer extends the limit on the credit card.
• Its comparatively low overdraft rates were one of the many reasons why
Nubank was able to attract so many customers right from the get-go.
• For comparison, incumbent Brazilian banks used to charge around 145
percent on the negative balance.
• Nubank, on the other hand, attracted customers with rates as low as 38
percent (subject to change, however).
• This was made possible by the fact that Nubank did not operate any
physical branches. Therefore, its cost structure was significantly lower.
 Cash Withdrawal Fees
• Whenever a customer retrieves cash from one of Nubank’s partners,
namely anco24Horas and Saque e Pague, a withdrawal fee of $ 6.50 (a
little over $1) is applied.
• The fee is used to cover the cost of being able to use its partners’ ATM
network. As such, Nubank likely does not make a profit from cash
withdrawals.
 Subscription

• In 2021, Nubank launched a premium credit card (in metal format)

called the Ultravioleta. The card grants customers a variety of benefits,
including:
• Access to Mastercard’s Black VIP Lounge
• Free travel medical insurance whenever tickets are bought via the card
• Purchase protection against accidental damage, theft, or robbery for up
to 90 days after the initial purchase
• WiFi at any airport
• … and many more. In order to use the card, customers will have to pay
a monthly subscription fee of R$49 (around $10).
 Referral Fees
• Subscription fees, however, are not the only method with which Nubank is
able to monetize its premium credit card.
• Whenever a customer uses the card to make a payment, he or she will
receive a cashback reward equal to 1 percent of the purchase price.
• The money can either be paid out (by sending it to the savings account),
exchanged for miles, or invested into stocks and index funds (via its
acquisition of Easyinvest).
• It can be assumed that Nubank receives some sort of compensation (often
called referral fees) from its cashback partners in exchange for encouraging
customers to conduct their purchases at the partner store.
• For instance, in late 2020, Nubank partnered with Amazon to reimburse
customers who purchased a product within its e-commerce marketplace.
 Insurance

• Nubank, via its Nubank Life entity, offers life insurance products to its
customers in Brazil. For as little as R$ 9 per month, customers can
ensure that their loved ones are taken care of in case of an unforeseen
fatality.
• Customers can, furthermore, add on additional coverage. This can
cover the funeral cost, hospitalization bills, or provide financial
assistance in case of disability
 Loans

• Apart from insurances, Nubank customers can also apply for personal loans
which can be paid back in multiple installments.
• Nubank generates income with those loans via the interest it charges on a
monthly basis. The interest rate ultimately depends on the repayment
period, the amount loaned, as well as a variety of other factors.
• Given that Nubank is able to collect thousands of data points on its
customers, such as their spending habits, level of income, or location, it can
accurately assess how likely it is that someone can repay that loan.
• As a result, its default rate should be extremely low. Given the integrated
app experience, customers can receive quasi-instant offers whenever they
apply for a loan.
 Nubank Funding, Revenue & Valuation

• According to Crunchbase, Nubank has raised a total of $2.3 billion

across 12 rounds of debt and equity financing.
• Notable investors include Sequoia Capital, Tencent, Dragoneer
Investment Group, Ribbit Capital, Berkshire Hathaway, and many
more.
• Nubank was valued at around $41 billion after its IPO during which
the company raised another $2.6 billion.
• For the fiscal year 2020, Nubank has generated $963 million in
revenue. This is close to a 100-percent increase from the $523 million
it generated in 2019
 The bottom line
• Nubank is a revolutionary banking service offering Brazilians a
convenient and cost-effective way to bank, get paid, earn interest, and
spend with minimal fees and complete transparency.
• Nubank is probably best for personal customers. Their business
account is still beta stage and offers little over and above the personal
account – though it’s still free.
• There’s little surprise that Nubank is quickly becoming the bank of
choice among young Brazilians looking for an easy way to bank
without paying excessive fees.
 What is Revolut?

Revolut offers a range of digital banking services in a mobile app

targeted at young tech-savvy users, including:
• Transferring money abroad in 29 currencies
• A pre-paid debit card that enables cash machine withdrawals in 120
countries
• A crypto-currency exchange allowing users to convert currencies into
Bitcoin, Litecoin, Ethereum, Bitcoin Cash or XRP
• Vaults for budgeting and saving money
• Mobile phone and overseas medical insurance
• With standard accounts, users get a free UK current account and a free euro
IBAN account. There are no fees on exchanging in 24 currencies, up to
£5,000 a month, and you can withdraw up to £200 a month from cash
machines.

• Revolut also offers monthly subscription plans with higher thresholds for no
fees, as well as instant access to crypto-currencies, cash back, travel and
concierge service.

• Revolut's services are currently only available in Europe, but the firm has
plans to expand into North America, Australia, Singapore and Hong Kong
soon.

• It was not a bank when it started, but Revolut announced in December that
it had been granted an EU banking licence by the European Central Bank. It
still aims to acquire a full UK banking licence.
 How big is Revolut?
• As of March, Revolut says it reached 4.5 million customers - 1.6
million customers are located in the UK alone.
• Revolut is currently valued at $1.7bn (£1.3bn) from its most recent
fundraising.
• The three-year-old firm's growth has been impressive - its customer
numbers trebled to 1.2 million in 2017, while revenues increased five
fold to £12.8m.
• In September, Revolut said 7,000 new accounts were being opened a
day, and that it was processing $3bn in transactions a month
 What is Stripe?

• Stripe is an online payment processing and credit card processing

platform for businesses.
• When a customer buys a product online, the funds need to be delivered
to the seller; Insert Stripe. Stripe allows safe and efficient processing
of funds via credit card or bank and transfers those funds to the sellers
account.
• Stripes software includes both a payment processing platform, as well
as a credit card payment gateway, and both are required in each
successful online transaction-- making it the most efficient and simple
software to choose for online payments.
 How Does It Work?
Stripe Payment Process:
• When you create an account for your business, Stripe software will connect to the
purchasing page of your shop platform.
• Once a customer is ready to purchase an item or service and ‘checkout’, they will
input their financial information in the purchase page.
• The information will then be sent from the website, through the Stripe software
that will verify that the funds are available (payment gateway) and process the
payment before sending it to the merchant account.
• Merchant receives funds, and a confirmation of sale is sent to both the buyer and
the seller.
Create an Purchasing page of shop Checkout Enter financial
Account platform information

Stripe Payment Website

Process

Merchant’s Payment process Verification of availability

Confirmation of
sale account of funds
 Business Models Supported by Stripe:
• Ecommerce sites
• Retail online stores
• B2B Platforms
• Software as a service
• B2C Marketplaces
• Nonprofits and fundraisers
 More About Stripes Services
As you navigate Stripe software, you’ll become familiar with all of the services and
support that comes with your subscription.
• When setting up your Stripe, you can contract with one of Stripe’s partener
developers to assist in the development aspects of your software setup
• Stripe is available in 34 different countries and can accommodate 135
currencies, making it an excellent resource for international merchants
• Stripe provides some of the best developer tools in the payment processing
industry
• Security for buyers and sellers is one of Stripes top priorities making each online
transaction thoroughly protected and secure
• Stripe gives buyers the option to save their financial information with the
merchant for future purchases
• Like other ecommerce services, Stripe has fees that are applied to purchases.
 What is Jupiter Bank?
•Jupiter is a digital banking app with one simple aim – to deliver a banking
experience that keeps pace with you. We help you cut through the banking jargon,
offer smart insights based on your spending, and provide you with a range of new-
age features to enable you to make sense of your finances.

•Jitendra Gupta is the Founder and CEO at Jupiter. He is Ex-MD of PayU. He has
pursued CA from ICAI . Jitendra was Founder and CEO of Citrus Pay, a leading
digital payments company in India.
Jupiter
• Jupiter, a digital banking platform, has partnered with RazorpayX to provide
the Jupiter Pro Salary accounts
• Save in Pots – savings a/c, with Insights as to how your money moves
• Jupiter has a tie-up with Federal Bank to offer savings accounts. Neobanks
are essentially fintech firms that have tie-ups with existing banks, and are not
licensed directly by the Reserve Bank of India (RBI)
• In case of not completing video KYC then account balance limit of Rs.
1,00,000 and a receipt limit of Rs. 2,00,000. U can use UPI and electronic
funds transfer
• Debit Cards
• Free withrawals from Federal Bank ATMs
• Rewards program
THANK YOU