Nubank’s growth-first strategy created Latin America’s biggest digital bank

David Vélez left Sequoia Capital in 2013 after concluding that Latin America lacked enough tech talent for venture investing. He saw the region’s banking oligopolies as inefficient and decided to build a digital bank despite widespread skepticism.

Vélez chose to make Nubank a tech-first bank with no fees, prioritizing rapid user growth over immediate profitability. By 2020 the company had raised over $820 million, reached a $10 billion valuation and served more than 26 million users, becoming the largest digital bank in the world.

Nubank achieved a $10 billion valuation, over 26 million users across Brazil, Mexico and Colombia, and became the world’s largest digital bank.

The region’s big banks charged high fees and offered poor customer experiences, creating an opening for a low‑cost digital alternative.

Vélez’s background in venture capital gave him confidence to tackle a highly regulated, capital‑intensive industry.

Focusing on growth allowed Nubank to attract talent, build proprietary technology and network effects that traditional banks could not quickly match.

Prioritizing long-term growth and customer experience over short-term profits can enable disruptive entrants to reshape entrenched industries.

After 2020 Nubank continued expanding into Mexico and Colombia, launched investment and insurance products, and went public in 2021 with a valuation that remained above $30 billion. Its growth‑first approach influenced a wave of Latin American fintech startups.