Genuinely revolutionary businesses are few and far between. They are the ones intent on tearing down entrenched norms. What defines them is an intense, almost single-minded focus on the customer, an unyielding determination to strip out inconvenience, and a mindset that treats systemic industry dysfunction not as a problem, but as an opportunity.
This is the tale of a company that brought that philosophy to bear on one of the most heavily defended and inefficient sectors anywhere: Brazil’s banking system. Nu Holdings, better known worldwide as Nu, is a financial technology group that is overturning the traditional, complacent banking model.
By servicing the unbanked and the underappreciated with a level of dignity previously reserved for the wealthy, it has built a financial engine that rivals technology firms in efficiency, but beats them in heart.
It is a story of how a Colombian outsider, a disillusioned insider, and a brilliant coder took on a cartel of five giant banks and changed the lives of millions. It is a wonderful company but is it a Wonder Stock? Read on to find out.
Contents
This article is about a wonderful business and will explain:
The history of why the Brazilian banking system became so bad for customers.
How three visionaries built the most popular financial services business in Latin America in just a few years.
How the company is able to crush the competition with efficiency.
What fanatical dedication to customer service can yield in an environment where the competitions treats customers badly.
Why this model of efficiency and customer satisfaction can be exported around the world.
What this may mean for long-term returns for those with the vision to back it.
This Deep Dive contains financial terms. Definitions can be found in the Wonder Stocks Glossary.
