William Tang's questions to Nu Holdings Ltd (NU) leadership • Q3 2024
Question
William Tang inquired about the competitive market for secured lending in Brazil and how Nu's operating dynamics and customer stickiness differ in this segment compared to its success in unsecured lending.
Answer
CFO Guilherme Marques do Lago detailed Nu's encouraging progress, particularly in FGTS-backed loans where it has already captured an estimated 25% market share of new originations. He attributed this to a successful direct-to-consumer digital model. For public payroll loans, he outlined a roadmap of adding new collateral agreements to cover over 70% of the TAM. He stated Nu's competitive edge comes from a superior UX/UI and a lower cost structure, allowing for better pricing and high price elasticity.