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Should the age of Nubank’s customer base worry incumbents?

eMarketer | Tom Auchterlonie  | Nov 3, 2021

Primary FI used by age in Brazil - Should the age of Nubank’s customer base worry incumbents?

The news:

Nubank revealed that its customers skew younger than those at established banks, per findings included in its newly disclosed US initial public offering (IPO) filing.

The Brazilian neobank attributed its data to a mix of its own research and assistance from Oliver Wyman. The findings, dated September 30, 2021, show:

  • 59% of Nubank’s customers were under 35 years old, versus just 30% for incumbents.
  • The gap is also stark when measuring people under 45, with the demographic comprising 81% of Nubank’s customers versus 52% for incumbents.
  • Nubank also predicts that a subset of its young customers—those ages 20 to 24—will experience a real-income boost of about 70% over the coming decade.

Note: The neobank disclosed its most detailed customer and performance statistics to date in anticipation of going public.


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Strong customer stats:

  • Nubank’s overall user base reached 48.1 million as of September 30, 2021, up 62% year over year (YoY), when it was 29.7 million.
  • Monthly active customers, defined as those who generated revenue within a 30-day window, stood at 35.3 million as of the same date, an 89% YoY increase from 18.6 million.
  • Deposits rose by 98% YoY, for the period, going from $4.1 billion to $8.1 billion. The percentage growth has been decelerating over time while the dollar amount has increased further.
  • Growth in small and medium-sized business (SMBs) users was up 189% YoY for the same period, surging from about 370,000 to nearly 1.1 million.
  • More than half of Nubank’s active customers that have been with it for over a year are considered to have a primary banking relationship, which the company defines as when an active customer has at least 50% of their monthly post-tax income flowing in or out of their accounts.
  • A track record of low customer-acquisition cost (CAC), with an average around 80% to 90% per year due to word of mouth or direct unpaid referrals. Nubank posted a $5.0 per customer CAC for the first nine months of 2021—and it believes, based on its research, that it has one of the world’s lowest CACs among consumer fintech companies.

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