Nu Holdings Ltd Ordinary Shares Class A NU

Nubank Is Driving Growth by Exporting Its Cost-Advantaged Digital Model to New Markets

In 2026, we expect Nubank to continue to focus on international growth, making major inroads into the Mexican and Colombian banking industries. This approach seems prudent to us; the firm has already been a major disruptive force in the Brazilian banking system thanks to the strong cost advantages of its fully digital banking platform, and those newer markets offer access to a largely untapped and reasonably affluent clientele. Exporting its competitively advantaged operating model to new markets, particularly ones with large unbanked or underbanked populations like Mexico and Colombia, seems like the logical choice, and we see significant long-term growth potential for Nubank from international expansion. Given its already expansive presence in Brazil, with over 60% of adults having an account with the firm, new customers will likely be increasingly difficult to find in its home market.