Philip Benton, principal analyst for financial services at Omdia: “Nubank has grown rapidly due to its no-fee product offering, in direct contrast to incumbent banks’ pricing strategies. Nubank has been focused on credit products from its infancy, which has helped the neobank to attract consumers at such a rapid rate with credit cards, which are traditionally difficult to obtain. Just 27 percent of Brazilian consumers owned a credit card in 2017, according to the World Bank, but that rate increased to 41 percent by 2021, largely thanks to Nubank which now has 35 million active credit cards in circulation. According to Omdia’s Neobank Activity Tracker, Nubank launched 10 new products/services and made 14 product/service enhancements in 2022, which was more than any other neobank globally. The introduction of open finance in Brazil has led to increased competition in the financial system, including the lower costs and fees that can create the conditions for Nubank and its fellow neobanks to continue to take market share from the incumbents. However, the central bank’s drastic increase in the prime lending rate, which…”