NU Holdings Ltd (NU)

[UpTickMeA$AP]

https://www.ft.com/content/61432e87-9e74-4d28-9a45-6310070ad4eb

“There’s going to be a rationalisation of some of the fintechs that are in the market, there will probably be some consolidation,” Nubank’s chief government and founder David Vélez instructed the Financial Times. “This will enable the survival of the fittest.”

Vélez predicted “a number of acquisitions” within the sector. “Some of the M&A [mergers and acquisitions] conversations we had 12 months ago are coming back at a 70 per cent discount?.?.?.?We’ll be looking to do more M&A.”

Vélez mentioned Nubank was “very close to break-even in Brazil”. He mentioned the group might be “fully profitable tomorrow”, however was placing progress first. The group was in a robust monetary place after elevating about $2.8bn within the IPO and its credit score losses had been decrease than the market common, he added.

The Colombian pointed to the proliferation of “about 40 different digital banks” in Brazil, Nubank’s homeland and Latin America’s largest economic system. “It probably was too much. Consumers will not have 20 different payment apps in their smartphones. It’s just too complex. You might have three or four, not 20.”