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First Principles

The bank that started with a decision to answer the phone

Sao Paulo, 2013. The moat was the customer, not the branch.

By capsrow · Updated July 2026

In the Global South, the strongest moat was never the branch. It was choosing to treat the customer as the product.

The most valuable thing a bank can build is not a branch. It is a reason to be trusted.

Sao Paulo, 2013. David Velez had spent four months and hundreds of reais just to open an account past armed guards, so he started Nubank from a first-principles question: treat the customer well, charge no fee. The unfashionable decision was to make customer service the product - answer the phone, drop the charge - not the interface.

The decision that mattered: the moat is the customer, not the branch.

By 2024 more than 100 million customers had joined, six in ten Brazilian adults among them, many holding their first fee-free account. In the Global South, the bank is being rebuilt around the person it serves.

Source: Nubank, 2024; Nu Holdings, 2025.

Sources. Source: Nubank, May 2024. Source: Nu Holdings, 2025. Source: Nubank, 2024; Nu Holdings, 2025.