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Pushed by investors for greater penetration among high-net-worth customers, Nubank is rolling up its sleeves to make another go. After scrapping an investment adviser project earlier this year that proved ineffective in attracting wealth, the digital bank has created a mix of measures to attract its wealthiest clients and dispel the perception that its base is limited to lower earners or young people starting their careers.
To increase demand and frequency of use in the segment served by the UV card, the bank created a 24-hour customer service, established partnerships with fare payment systems and parking networks, and created an opportunity to share benefits within the bank. with family. But a simpler initiative that could have a bigger impact because of user dissatisfaction is the credit card limit.
Nubank’s traditional policy of starting with a lower limit and increasing it if the customer proves to be a good payer has worried those who thought they could immediately get a better offer. The company then realized that this user ended up getting better terms at other establishments.
“His desire to test a small limit and prove himself on the bench is much less. It’s an act of humility for us to make adaptations to meet those expectations and offer a more appropriate limit,” says Livia Chains, Nubank’s country manager in Brazil. The new policy, however, only applies to Ultraviolet, the bank’s most premium card. For roxinho, stick to the traditional model.
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“Compared to our middle-class or entry-level audience, our level of high-income principality is still lower. Our moves are more and more to be the go-to bank for this customer who is more sophisticated in terms of what they need and has other challenges,” she adds, referring to the app’s new features.
Nubank does not say how many users fall into this high-income group, but says that about 60% of Brazilians with a monthly income of more than 5,000 reais have an account on the app. According to a survey by LCA Consultores conducted by economist Bruno Imaizumi with data from IBGE, in 2021 about 7 million Brazilians earned at least five minimum wages (5,500 reais at the time).
However, not all Nubank users have a digital bank as their primary institution. According to the estimate given in the Itaú BBA report, Nubank mainly consists of about 20% of high-income customers compared to a share of low-income customers of 70%. The total user base of the digital bank is about 80 million users.
One of the new features in the application, Espaço Família, was also created with the aim of retaining those users who are part of the first wave of Nubank customers, but who have changed their lives over time. This is someone who applied for a credit card when they were in their early 20s, but is now in their 30s and their income level has increased. “Of these clients, 80% are already married and most have children,” he says.
The advantage, she says, is that customers who have been there since the beginning tend to love the brand and expect new needs to be met. “He wants to stay here and needs a different level of proposition because his life is different now, but his engagement with the brand is still there,” says the executive.
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Although the adviser model has been phased out in the investment space, Chanes says Nubank continues to view this segment as strategic for attracting high revenue, competing for space with XP and BTG Pactual, which have also invested in digital banks. At the moment, Nubank is focused on moving all assets available on the NuInvest app to the Nubank app. However, this does not mean that the NuInvest program will be closed. “We’re still evaluating that. But what’s important right now is that all products are available to the entire base.”
The bank says the experience, with greater transparency and simplicity, serves the average investor in Brazil, who doesn’t necessarily have as much clarity about their applications. “Sometimes the high-net-worth client is thought to be a very sophisticated investor, which is not true. He may be a more sophisticated investor than the middle class, but he does not want as much risk and works with two or three types of assets.”
As for the points program, another type of product that seeks to attract higher-income customers to financial institutions in general, the executive says Nubank is still reviewing its Reward program, which was suspended in 2021. “We’re going to merge it at some point, but we’re still learning. Depending on success, we’ll speed it up or slow it down.”
