In the early 2010s, five incumbent banks – Itau, Santander, Banco do Brazil, Caixa, and Bradesco – controlled 80% of the Brazilian market. Using this “monopoly,” the named banks gained enormous profits by charging exorbitant fees for fraud protection and text alerts (the average credit-card fee started at $20 per year) and sky-high interest rates. Meanwhile, the service at these banks was characterized as “lousy” by their customers. Things changed in 2013 when a company of entrepreneurs (David Vélez, Cristina Junqueira, and Edward Wible) intentionally challenged the system by creating an entirely online, no-fee financial service called Nubank.
Since April 1, 2014, the day when the first transaction with a Nubank card was made, Nubank has grown from a fintech startup to a fully licensed neobank with a US$52 billion market capitalization. Now, it’s the largest and most profitable neobank globally, with an 84% year-on-year increase in revenue and nearly 60 million customers in Brazil, Mexico, and Colombia. And Nubank’s popularity is only growing, with the app adding on average 2.1 million new customers a month in 2021. But what makes this digital bank so successful? Here’s our in-depth Nubank app review to show what it has to offer individuals and businesses.
Nubank app review
Nubank offers both business and personal accounts. Despite these being different products for different audiences, both are managed on the same app. As the Nubank business account was created for freelancers and small businesses, having both accounts in one app is convenient. Business and personal transactions are separate, but there is no need for several apps and a million passwords.
Nubank mobile app (Google Play)
Category: Finance
Released: April 25, 2014
Current version: Varies with device
Latest update: Apr 28, 2023
Downloads: More than 100 million
Rating: 4.4
The latest version of the app includes a revolutionary feature: NuTap. This function allows customers to use the Nubank app as a POS, accepting payments through QR codes, credit cards, or debit cards using just a smartphone. With the NuTap function, transactions will be made by simply touching the cards to the back of smartphones.
Onboarding
Registration at Nubank is standard for fintech and modern digital banking products — easy, intuitive, and quick. To open a Nubank account, users have to fill out the form, provide personal details (name, date of birth, address), and wait for the bank’s response. There are no credit checks when opening an account, and the only thing that is performed is the enrollment analysis, which is done relatively quickly. However, the service is available only for adult residents of Brazil, Mexico, and Colombia who have a regular CPF status on the Receira Federal Brasileira (the Brazilian version of IRS).
In the enrollment analysis, AI algorithms obtain customer data using the customer’s name and Individual Taxpayers’ Registry number, analyze it, and create an internal score. From there, customers are grouped into three categories:
- Customers who qualify for a Nubank account and a credit card.
- Customers who qualify for a Nubank account and a debit card.
- Customers who don’t qualify for a Nubank account or a credit/debit card.
The third group of clients, those whose applications were denied, can reapply after three months.
Services
All Nubank products for businesses and individuals are free. There are two exceptions: the Nubank Ultravioleta card, a metal credit card with additional benefits, and the NuTap service. With NuTap, there are no recurring fees, but debit and credit transactions are subject to transaction fees: 1.49% and 3.19%, respectively. The Nubank Ultravioleta card costs R$49 per month for customers who spend less than R$5000 monthly or have less than R$150,000 in their deposit. However, the Ultravioleta offers a range of extra benefits:
- 1% instant cashback
- Access to VIP Lounges
- Various kinds of travel insurance
That’s on top of the standard package of services that are available for all customers:
- Free virtual debit or credit card
- Unlimited transfers to any bank
- Free real-time payments (PIX)
- Access to loans
- Balance-monitoring and analytics tools
- Budgeting and saving tools
- One-tap or automatic payment for bills (electricity, water, etc.)
- Access to investing and crypto trading tools (in beta testing)
- Rewards program
A business account is a new feature available to existing Nubank customers who are sole proprietors or freelancers. Business accounts offer more than standard services; they also provide tools to send invoices and handle billing and taxes. By opening a business account, one can separate personal and business transactions and get rid of paperwork.
Design & usability
Inspired by the finest design practices and the gold standard design principles formulated by Dieter Rams, the Nubank team has created an excellent application. Nubank clients generally find the Nubank app friendly, intuitive, and informative. Aside from the clean layouts and easy-tap buttons, there are clear graphs and charts for all analytics and beautiful animations and gamification elements. Still, the user experience isn’t always flawless. Some users complain that password fields are too small and that password managers’ autofill functionality hides the field entirely when the password is entered. Also, Nubank’s English version remains unavailable to many non-Lusophone speakers, and it is not possible to copy-paste different screens to use automatic translation programs.
Reliability & security
In the wake of the notorious data leak in 2020, Nubank shifted its primary focus to cybersecurity. It accelerated the move to cloud-native infrastructure and built a new team to handle cybersecurity risks. As a result, in 2022, Nubank will be a secure, stable, and reliable application backed by AWS’ strategic security service, fully compliant with industry regulations, and secured with an artificial intelligence anti-fraud system.
On the user’s end, Nubank app security features include the following:
- Multifactor authentication
- Biometric authentication (Touch ID, facial recognition)
- Real-time push notifications that help keep track of inbound and outbound transactions
Moreover, Nubank users have complete control over their accounts through the app. A few taps are enough to reset passwords, lock cards, and report unauthorized transactions.
Support
The Nubank support team is available via email, telephone, and live chat. A chatbot provides solutions to common problems. Clients can request a live agent to assist with more complicated issues using the app’s in-app chat. Agents at Nubank are available 24/7 to answer questions. Despite that, some users still believe that Nubanks’s support is lacking. Almost all complaints are about the time it can take to resolve a simple issue.
Our verdict
Our verdict is 4,9 stars out of 5. Nubank is Latin America’s largest and most innovative bank. It provides secure, easy-to-use banking services at no charge. Plus, Nubank customers fully control their money and accounts and enjoy avant-garde features such as free real-time payments through the PIX system, in-app POS, and easy tax payments.
What we like about Nubank:
- Hassle-free registration and verification
- User-friendly interface
- Free digital credit and debit cards
- Free real-time money transfers
- Spending track and analytics
- Budgeting and bill-splitting tools
- Rewards program
- High level of data security
- Avant-garde features like NuTap
- Investment and crypto trading tools
What we dislike about Nubank:
- No free ATM withdrawals
- The only available language is Portuguese
- Customer support needs some improvement
What makes Nubank different?
Nubank combines banking services with fintech innovation without traditional fees. In Nubank, overdraft or maintenance fees are not applied since that would violate the company’s policy of not charging customers to manage their finances. Instead, the company makes a profit by charging only on-demand for services (e.g., exchange fees, interest on deposits and loans, overdraft fees, and ATM withdrawals).
Value for customers:
Nubank offers a range of financial services and tools at no cost to individuals and small businesses, from real-time payments and automated billing to in-app POS terminals. These terminals are ideal for small business owners because they don’t have to buy expensive equipment or pay monthly fees to accept credit card payments. Using modern technologies, Nubank eliminated bureaucracy and simplified access to banking for many people, regardless of their location, credit history, etc.
Value for partnering businesses:
Nubank already has 60 million customers and is steadily expanding. Establishing a partnership with a neobank of this size offers many opportunities:
- For startups — Nubank and Sequoia Capital are collaborating to invest in Latin American startups across various industries, including e-commerce and enterprise software.
- For e-commerce firms — NuBank’s in-app marketplace is a powerful tool for promoting brands. By offering Nubank app users special promotions and offers, companies can enhance brand recognition, attract new audiences, and boost sales.
- For financial institutions and fintech — Nubank partners with various financial companies. For instance, it has partnered with Creditas, which offers credit products, and BexsPay, specializing in cross-border payments and e-commerce.
