Nu Holdings Ltd. (NU): Business Model Canvas [Dec-2025 Updated]

You're trying to crack the code on how Nu Holdings Ltd. built one of the fastest-growing digital banks, and honestly, their Business Model Canvas reveals a lean, powerful machine running on a low-cost digital flywheel. Forget legacy overhead; this is an AI-first operation that scaled to 127 million customers globally by Q3 2025, pulling in a record $4.2 billion in total revenue that same quarter, all while keeping the cost to serve active users down to just $0.90. If you want to see exactly how they blend zero-fee value propositions with massive deposit growth-hitting $38.8 billion-to fund a massive credit expansion, you need to look at the nine building blocks below.

Nu Holdings Ltd. (NU) - Canvas Business Model: Key Partnerships

You're looking at the engine room of Nu Holdings Ltd.'s growth, which is heavily reliant on strategic alliances. These partnerships are what allow Nu Holdings Ltd. to scale its digital platform across Latin America efficiently.

Payment networks: Mastercard and Visa for card infrastructure.

The foundation of Nu Holdings Ltd.'s credit and debit offering rests on its relationships with global payment networks. While specific interchange fee structures aren't public, the sheer scale of card usage is evident in the portfolio growth. The total credit portfolio expanded to $30.4 billion as of September 30, 2025, up 42% year-over-year on a foreign exchange-neutral basis (FXN). This massive portfolio is what drives transaction volume across the networks.

Cloud providers: AWS and Google Cloud for platform scalability.

Running a platform for 127 million customers globally requires serious infrastructure muscle. Nu Holdings Ltd.'s ability to add 4.3 million new customers in Q3 2025 alone speaks directly to the scalability provided by its cloud partners. The platform maintains a low-cost structure, with the Monthly Average Cost to Serve Per Active Customer stable at $0.80 in Q2 2025.

AI collaborations: Partnering with OpenAI for advanced model integration.

The vision for the next generation of banking at Nu Holdings Ltd. is explicitly tied to artificial intelligence. CEO David Vélez stated that the company is building the next generation of its platform, redefining operations and customer experience by aiming to become an AI-first company, integrating foundation models deeply. This strategic direction suggests deep collaboration with leading AI model providers.

Merchant network: Expanding payment acceptance across retail segments.

The utility of a payment card is directly tied to where it's accepted. The growth in customer engagement, reflected by the Monthly Average Revenue per Active Customer (ARPAC) reaching $13.4 in Q3 2025, shows customers are using their Nu Holdings Ltd. products actively. Purchase volume hit $36.5 billion in Q3 2025, which is the tangible result of a growing and accepted merchant footprint.

Public sector agreements for payroll-deductible loans.

While specific public sector payroll agreements aren't detailed, the growth in lending products shows successful penetration into new credit segments. Secured lending grew 133% year-over-year, and unsecured lending grew 63% in Q3 2025. These segments often involve formal employment structures, suggesting success in reaching payroll-linked customers.

Here's a quick look at the scale these partnerships support as of the third quarter of 2025:

The platform's efficiency is also a key partnership outcome. The efficiency ratio improved to 27.7% in Q3 2025, meaning less cost to generate each dollar of revenue. The risk-adjusted Net Interest Margin (NIM) expanded to 9.9%, showing disciplined pricing across the loan book.

You can see the platform's reach across its core markets:

• In Brazil, Nu Holdings Ltd. serves over 60% of the adult population.
• In Mexico, the customer base reached 12 million.
• Colombia's customer base is nearing 3 million.

Honestly, the numbers show that the operational leverage from these tech and network partnerships is what's driving the 31% annualized Return on Equity (ROE). Finance: draft 13-week cash view by Friday.

Nu Holdings Ltd. (NU) - Canvas Business Model: Key Activities

You're looking at the core engine driving Nu Holdings Ltd.'s growth-the relentless execution across its key activities. This isn't just about having an app; it's about the operational discipline that turns millions of users into profitable relationships, even while expanding rapidly across Latin America.

Aggressive customer acquisition and seamless digital onboarding

Nu Holdings Ltd. continues its aggressive push to capture market share, evidenced by its sheer scale. By the end of the second quarter of 2025, the global customer base reached nearly 122.7 million, adding 4.1 million net new customers in that quarter alone. This growth is geographically diverse, with Mexico now serving 12 million customers, representing about 13% of that country's adult population. In the anchor market of Brazil, Nu Holdings is now the third-largest financial institution by customer count, with over 107.3 million customers, where 60% of those users consider Nu their primary financial relationship as of mid-2025. The monthly activity rate across the platform remains high at 83.2%.

Developing new financial products (e.g., insurance, investments, NuTravel)

Monetization hinges on cross-selling, and the product suite is deepening. The active customer base for investments and crypto has seen significant expansion, reaching 36.2 million and 6.6 million respectively by Q2 2025. The lending side is also scaling, with active unsecured loan customers hitting 13.6 million, a 56% year-over-year increase. Furthermore, the SME segment grew by 23% year-over-year to reach 5.2 million active customers. The Monthly Average Revenue Per Active Customer (ARPAC) crossed the $12 mark for the first time in Q2 2025, showing the success of linking these diverse services.

Here are the latest figures on customer segment penetration and product adoption as of Q2 2025:

Proprietary credit underwriting and risk management models

The core of profitability is managing credit risk through proprietary models. The company's disciplined approach is reflected in its asset quality metrics. The leading indicator, the 15 to 90-day Non-Performing Loan (NPL) ratio, declined 30 basis points quarter-over-quarter to 4.4% in Q2 2025. The 90+ NPL ratio was 6.6%. This strong underwriting performance allows for a higher risk-adjusted Net Interest Margin (NIM), which expanded to 9.2% in Q2 2025. To be fair, credit products are the primary driver of profitability, contributing 43% of the gross profit in Q2 2025.

Building an AI-first digital banking platform for efficiency

The platform's efficiency is a direct result of its technology investment, including the integration of Hyperplane in 2024 to accelerate its AI-first strategy. This focus on automation and data processing directly impacts the operating leverage. The efficiency ratio, which measures operating expenses against total income, stood at 24.7% in Q1 2025 and rose slightly to 28.3% in Q2 2025 due to growth investments. This ratio remains exceptionally low for a high-growth fintech.

Maintaining a low-cost operating platform; cost to serve is defintely low

The structural advantage of a branchless model is quantified by the cost to serve. Nu Holdings Ltd. has managed to keep this metric consistently low. In Q1 2025, the Monthly Average Cost to Serve Per Active Customer was $0.7 per customer, representing an 80% reduction over recent years. By Q2 2025, this figure remained stable at $0.80 per customer. This low cost base allows Nu to offer competitive pricing while maintaining strong profitability metrics, such as an annualized Return on Equity (ROE) of 28% in Q2 2025.

Finance: draft 13-week cash view by Friday.

Nu Holdings Ltd. (NU) - Canvas Business Model: Key Resources

You're looking at the core assets that make Nu Holdings Ltd. (NU) a dominant force in digital finance across Latin America. These aren't just line items; they are the engine driving their growth and efficiency. Honestly, the scale they've achieved is the most critical resource here.

The sheer size of their user base is foundational. This massive network effect is hard for competitors to replicate quickly, especially given the high engagement levels they sustain.

• Massive customer base: 127 million globally as of Q3 2025.
• Highly engaged user base: Activity rate above 83%.
• Strong deposit base: Total deposits reached $38.8 billion in Q3 2025.
• Proprietary technology and data-driven AI models: Centered around the NuFormer platform for underwriting and personalization.
• Excess capital: Over $4.3 billion for strategic growth initiatives.

The financial strength underpinning this growth is substantial. Deposits are the lifeblood of a bank, and their growth shows deep customer trust and a low-cost funding advantage.

You can see the operational leverage in their efficiency. A low cost-to-serve model, powered by technology, means that as the customer base scales, profitability should improve disproportionately. This is where the AI investment pays off; it's not just a feature, it's a core cost-saving and risk-management asset.

Their technology stack is a clear differentiator. Nu Holdings is actively pursuing an AI-first vision, embedding foundation models across key functions. This is how they manage risk and personalize offerings at this massive scale.

• AI integration focus areas:
• Underwriting and credit risk assessment.
• Fraud detection systems.
• Customer personalization and interface experience.

The capital position is also key for their stated ambitions, including the U.S. national bank charter application. Having over $4.3 billion in excess capital means they can fund aggressive expansion and strategic M&A without immediate reliance on external equity markets. Finance: draft 13-week cash view by Friday.

Nu Holdings Ltd. (NU) - Canvas Business Model: Value Propositions

You're looking at the core reasons why over 127 million customers globally choose Nu Holdings as of the third quarter of 2025. The value proposition is built on radical simplicity and cost advantage.

Zero-fee or low-cost, accessible digital financial services.

Nu Holdings drives value by maintaining an extremely lean operating structure, allowing it to pass savings to the customer base, which reached 127 million in Q3 2025. The company's efficiency ratio improved to 27.7% in Q3 2025. This technological advantage translates directly into low customer servicing costs.

The platform's architecture avoids large physical infrastructure, meaning each additional product adopted by an existing user flows more efficiently into operating leverage.

Superior mobile-first user experience and simplicity.

The entire experience is designed around the mobile platform, which drives deep customer engagement. The monthly activity rate across the global customer base remained strong at above 83% in Q3 2025. Furthermore, in Brazil, 60% of the 110.1 million customers use Nu as their primary financial relationship as of September 2025. The company's vision is to become AI-first, integrating foundation models to drive an AI-native interface to banking.

Financial inclusion for Latin America's underbanked population.

The company's mission explicitly targets financial access and empowerment across Latin America. By September 2025, Nu served 110.1 million customers in Brazil, representing over 60% of the adult population there. In Mexico, the customer base reached 13.1 million, serving around 14% of the adult population. Historically, Nubank has been responsible for the inclusion of 28 million individuals into the financial system. The total credit portfolio grew 42% year-over-year on a foreign exchange-neutral basis to $30.4 billion in Q3 2025.

Comprehensive product suite (super app) on a single platform.

Nu Holdings is building out a multi-product platform, moving beyond basic accounts and credit cards to capture more of the customer's financial life. The expansion into various segments and products shows this deepening engagement, as evidenced by the Q2 2025 product adoption figures:

• Active unsecured loans customers: 13.6 million
• Active secured loans customers: 6.8 million
• Active investments customers: 36.2 million
• Active crypto customers: 6.6 million
• SME customer base: 5.2 million

This multi-product approach is driving the Monthly ARPAC to $13.4 in Q3 2025.

Instant, human-in-the-loop customer service.

The value proposition includes a commitment to keeping customers loving the service fanatically, which is supported by the low cost-to-serve structure. The Monthly Average Cost to Serve Per Active Customer was $0.90 in Q3 2025, down from $0.80 in Q2 2025, demonstrating the efficiency that underpins the ability to deliver high-quality, scalable support.

Finance: draft 13-week cash view by Friday.

Nu Holdings Ltd. (NU) - Canvas Business Model: Customer Relationships

You're focused on how Nu Holdings Ltd. keeps its massive, rapidly growing customer base engaged and profitable without the overhead of physical branches. The relationship model is built entirely around its digital core, aiming for fanatic loyalty.

Automated self-service via the 100% digital mobile app

The entire customer relationship is mediated through the mobile application, which supports a highly efficient, low-cost service model. As of the third quarter of 2025, Nu Holdings Ltd. served a global customer base of 127 million people, adding 4.3 million new customers in that quarter alone. The engagement level is exceptionally high, with the monthly activity rate consistently above 83% across the entire platform.

This digital-first approach translates directly into superior unit economics for customer interaction. The Monthly Average Cost to Serve Per Active Customer was reported at $0.90 in Q3 2025. This contrasts with the Q1 2025 figure of $0.70 per customer, though the Q2 2025 figure was $0.80 per customer, showing some fluctuation in cost efficiency as the platform scales. The platform's success in making the app the primary touchpoint is evident in Brazil, where 60% of its 110.1 million customers in that country use Nu as their primary financial relationship as of Q3 2025.

High-touch, fanatical customer service for loyalty

While the service is automated, the stated goal is to keep customers loving the company fanatically. This loyalty is what drives the high activity rates and the deepening of the customer relationship over time. The monetization success strongly suggests this loyalty is being maintained, as the Monthly Average Revenue per Active Customer (ARPAC) reached $13.4 in Q3 2025.

The depth of the relationship is visible in cohort performance; for customers with over eight years on the platform, the ARPAC reached $27.3 in Q2 2025. This indicates that the initial digital onboarding successfully transitions into long-term, high-value relationships.

Community building and referral programs for organic growth

Organic growth is a key driver, evidenced by the consistent net additions to the customer base. In Q3 2025, Nu added 4.3 million customers, representing a 16% year-over-year increase. The platform's reach in its core market is substantial, with Nu serving over 60% of the adult population in Brazil. While specific referral program contribution percentages aren't detailed, the overall customer growth rate of 16% year-over-year in Q3 2025 is a testament to the viral and organic appeal of the product ecosystem.

The expansion across product lines also serves to embed the customer further into the Nu ecosystem, which acts as a powerful retention and organic growth mechanism:

• Active credit customer base reached 55 million in Q2 2025.
• Active unsecured loans customers totaled 13.6 million in Q2 2025.
• Active investments customer base was 36.2 million in Q2 2025.

Data-driven personalization for cross-selling

The strategy to increase ARPAC relies heavily on successfully cross-selling a wider array of financial products to the existing, engaged user base. This monetization flywheel is clearly working, as Q3 2025 revenues surpassed $4 billion. The success of this strategy is quantified by the growing portfolio penetration across various product categories.

The monetization mix shows the importance of lending products in driving revenue quality:

The platform's ability to scale this monetization is reflected in the profitability metrics; Nu Holdings Ltd. delivered a record annualized Return on Equity (ROE) of 31% in Q3 2025, with Net Income reaching $783 million. The efficiency ratio for the company stood at 27.7% in Q3 2025, showing continued operating leverage as more products are sold to the established customer base.

Finance: draft 13-week cash view by Friday.

Nu Holdings Ltd. (NU) - Canvas Business Model: Channels

The core of Nu Holdings Ltd. channel strategy is its entirely digital delivery mechanism, which underpins its low-cost structure and massive scalability across Latin America.

Primary channel: The 100% digital mobile application

The mobile application serves as the sole interface for nearly all customer interactions, from onboarding to daily transactions and product management. This digital-first approach is central to the company's efficiency. As of the third quarter of 2025, Nu Holdings Ltd. served a global customer base of 127 million people across Brazil, Mexico, and Colombia^{1, 17}. The engagement on this primary channel is high; the monthly activity rate across the platform was over 83% in Q3 2025¹. Furthermore, monetization through this channel is accelerating, with the Monthly Average Revenue per Active Customer (ARPAC) reaching $13.4 in Q3 2025¹.

Word-of-mouth and viral organic growth

A significant portion of Nu Holdings Ltd.'s customer acquisition is fueled by organic interest, suggesting strong product-market fit and customer satisfaction that drives referrals. The company has demonstrated an ability to scale massively through this method, achieving a compound annual growth rate (CAGR) of 70% in customers since the third quarter of 2021⁵. In the third quarter of 2025 alone, Nu Holdings Ltd. added 4.3 million new customers¹. This organic momentum is critical for maintaining a competitive customer acquisition cost, even as the company invests in broader digital outreach.

Strategic physical points for cash deposits/withdrawals in Mexico

Recognizing that the Mexican market remains heavily reliant on cash, Nu Holdings Ltd. has built out a substantial physical network to support its digital accounts, primarily for cash deposits and withdrawals. This hybrid approach bridges the gap between digital banking and local cash economies. By late 2025, the network had consolidated to over 30,000 physical contact points⁷. This infrastructure is essential for serving the 13.1 million customers in Mexico, who represent about 14% of the country's adult population^{1, 6}.

Here is a breakdown of the physical network components supporting cash transactions in Mexico:

The expansion to OXXO was announced to begin in early 2025, allowing access to over 9 million Nu customers in Mexico⁴.

Digital marketing and social media presence

While the search results do not provide a specific dollar amount for digital marketing spend in late 2025, the strategy is clearly focused on leveraging the digital platform and deepening engagement to drive monetization, which is a form of channel optimization. The company's growth is supported by its ability to monetize effectively, with revenue rising 39% year-over-year (FXN) to a record $4.2 billion in Q3 2025¹⁷. The focus is on building revenue durability through multi-product adoption rather than solely on customer acquisition cost (CAC) metrics, which were noted as a concern in earlier periods⁸. The company's vision to become AI-first is also a channel enhancement, aiming to drive an AI-native interface to banking¹.

Key channel engagement metrics include:

• Monthly Average Revenue per Active Customer (ARPAC) in Q3 2025: $13.4¹.
• Customer base in Brazil as of September 2025: 110.1 million¹.
• Customer base in Colombia as of September 2025: 3.8 million¹.

Nu Holdings Ltd. (NU) - Canvas Business Model: Customer Segments

You're looking at the core engine of Nu Holdings Ltd. (NU) growth, which is its incredibly diverse customer base spanning multiple countries and income levels. This segment strategy is what allows the platform to scale so effectively across Latin America.

The foundation remains the mass market and underbanked in Brazil, Mexico, and Colombia. As of the third quarter of 2025, Nu Holdings served a total of 127 million customers globally. In Brazil alone, the customer base reached 110.1 million as of September 2025, representing over 60% of the country's adult population.

The platform also successfully targets tech-savvy Millennials and Gen Z seeking digital alternatives. This group is characterized by high engagement; in Brazil, 60% of customers use Nu as their primary financial relationship. The overall monthly activity rate across the platform remains solid, above 83% in Q3 2025.

Nu Holdings has actively moved upmarket to capture higher-income segments with premium investment offerings. This is evidenced by the specific segment reaching 3 million customers as of Q2 2025, showing a year-over-year growth of 13%. The platform also serves a significant business segment, with Small and Medium-sized Enterprises (SMEs) reaching 5.2 million accounts as of Q2 2025, a 23% increase year-over-year.

The sheer scale of customer acquisition across geographies is a key differentiator. You can see the geographic distribution as of Q3 2025:

The platform's segmentation strategy is detailed in its product adoption metrics, showing the breadth of its customer base beyond simple account numbers. Here's a look at the specific customer cohorts reported in Q2 2025:

• Mass Market customers: 104.7 million
• Super Core customers: 9.8 million
• SME accounts: 5.2 million
• Higher Income customers: 3 million

The focus on digital natives and financial inclusion is clear when looking at the initial target profile. This group is defined by:

• Seeking user-friendly, low-cost financial solutions
• A strong initial focus on individuals aged 18-30
• Driving financial inclusion, bringing 5.7 million new individuals into the credit card market in Brazil during 2023

Finance: draft 13-week cash view by Friday.

Nu Holdings Ltd. (NU) - Canvas Business Model: Cost Structure

You're looking at the core expenses that power Nu Holdings Ltd.'s massive scale across Brazil, Mexico, and Colombia as of late 2025. The cost structure is dominated by managing credit risk and continuous platform investment, all while maintaining a lean operational core.

High credit loss allowances due to rapid credit portfolio expansion remain a significant cost factor, reflecting the inherent risk in growing lending aggressively in emerging markets. For the second quarter of 2025, Nu Holdings took an allowance for credit losses of approximately $1 billion in that quarter alone. As of June 30, 2025, the Expected Credit Loss (ECL) allowance for credit card receivables and loans to customers totaled US$4,319,414 (in thousands, or approximately $4.32 billion). This allowance is a critical judgment area, sensitive to macroeconomic scenarios in its operating geographies.

The commitment to building out the platform means Technology and product development investment is a constant drain, though specific R&D spend figures aren't clearly itemized in the latest reports. However, the strategic direction is clear: Nu Holdings is actively building the next generation of its platform with a goal to become AI-first, integrating foundation models deeply into operations. This implies substantial, ongoing investment in engineering and data infrastructure to maintain its competitive edge.

Interest expense on deposits and funding costs has been a growing line item as the deposit base expands rapidly. For the three-month period ended September 30, 2025, the Interest expense on deposits reached $1,089,722 (likely in thousands, or about $1.09 billion). To manage this, the cost of funding improved to 89% of interbank rates in Q3 2025, down from 91% in Q2 2025, showing better management of its growing funding base.

The core advantage remains the Low Monthly Average Cost to Serve Per Active Customer. For the third quarter of 2025, this cost was reported at $0.90 per customer. This is a slight increase from the $0.80 seen in Q2 2025, but still firmly below the dollar level and a key driver of the firm's efficiency. This low cost is partly attributed to operational leverage, as Nu estimates its cost to serve in Brazil is approximately 85% lower than incumbents based on 2024 data.

Finally, General and administrative expenses for regulatory compliance are an inherent cost of operating as a major financial institution across multiple jurisdictions. Nu Holdings continues to meet its ongoing regulatory obligations, such as submitting compliance reports to the SEC as a foreign private issuer. The company's efficiency ratio, which captures these operating costs relative to revenue, stood at 27.7% in Q3 2025, reflecting continued productivity gains despite these overheads.

Here's a quick look at the key cost metrics from the latest reported quarter:

You'll want Finance to track the quarterly change in the ECL allowance against the growth rate of the total credit portfolio, which expanded 42% YoY FXN to $30.4 billion in Q3 2025.

Nu Holdings Ltd. (NU) - Canvas Business Model: Revenue Streams

You're looking at the core ways Nu Holdings Ltd. brings in money as of late 2025. The business model is heavily weighted toward interest income from its growing credit operations, but fee-based income is a significant and growing component, making up the difference between Net Interest Income and the record total revenue.

The total revenue for the third quarter of 2025 hit a record of $4.2 billion.

The primary driver remains the credit portfolio, which fuels the Net Interest Income (NII). For Q3 2025, the NII reached $2.3018 billion.

The remaining revenue comes from various fees and commissions. While a precise, itemized breakdown for Q3 2025 is not immediately available in the latest public summaries, we know the total fee income must account for the difference between total revenue and NII. For context, the Interchange Fee and Commission Income in Q3 2024 was $469.4 million.

Here is a summary of the key revenue components and related financial metrics from Q3 2025:

The fee-based revenue streams, which are critical for diversification, are structured as follows:

• Interchange fees and commissions from card transactions (The Q3 2024 figure was $469.4 million).
• Fees from personal loans, secured loans, and insurance products (This is a component of the implied fee income).
• Investment management fees from the investment platform (This is a component of the implied fee income).

To be fair, the growth in the credit portfolio to $30.4 billion is what directly supports the NII, which is the largest single revenue line. The company is seeing strong engagement, with the Monthly Average Revenue Per Active Customer (ARPAC) hitting $13.4 in Q3 2025, indicating customers are using more of the platform's offerings.

Finance: draft the Q4 2025 revenue projection based on the Q3 ARPAC and customer growth rate by next Tuesday.