Nubank Launches U.S. Services with High-Yield Products
Nubank has officially launched its services in the United States, offering customers a range of financial products, including high-yield savings accounts, a no-fee credit card, and low-cost international transfers through its banking partner, Lead Bank.
At a Miami launch event, founder and CEO David Vélez and co-founder Cristina Junqueira outlined the initial product lineup. They introduced deposit accounts with a 3.50% annual yield, fee-free international remittances, and a no-annual-fee credit card offering 1.5% cash back on purchases.
Nubank’s U.S. expansion follows its conditional approval for a national bank charter from the Office of the Comptroller of the Currency in January. The company is now under review by the Federal Reserve and the FDIC. Junqueira stated that Nubank expects to operate under its own charter by next year. Until then, it will rely on its partner-bank arrangement, a common strategy for fintechs entering the U.S. market.
Nubank’s success in Brazil is often attributed to its timing and consumer-focused approach. When Vélez, Junqueira, and Edward Wible founded the company in 2013, Brazil’s banking sector was dominated by a few large banks known for high fees, bureaucracy, and poor service.
Sequoia Capital, where Vélez previously worked, described Brazil’s banking sector as a near-monopoly that had gone unchallenged for decades. Nubank positioned itself as an underdog, offering a level of consumer experience previously unavailable in the country.
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The company began with a purple credit card, chosen because it did not require a banking license. Nubank then focused on eliminating fees that Brazilians resented most, such as account maintenance and overdraft fees. This approach resonated with many lower-income Brazilians who had avoided formal banking due to costly fees.
By operating fully digitally and without branches, Nubank reduced costs and passed savings to customers. It also reached underserved populations that traditional banks had overlooked. Additionally, Nubank developed a new underwriting system, using alternative data to assess credit risk. This innovation brought 5.7 million previously excluded individuals into the credit-card market within a year.
Over time, Nubank’s strategy has paid off. It now serves over 60% of Brazil’s adult population and has become the country’s most valuable financial brand by some measures, surpassing Itaú and Caixa—all without a physical branch network.
Once fully operational, the company will have greater flexibility to expand its product offerings and compete more directly with established banks.
