3 Reasons to Buy Nu Holdings Stock Like There's No Tomorrow

• Rising smartphone adoption successful Latin America supports Nu Holdings' digital-first banking model.

• Nu has disrupted the accepted banking strategy and present has much than 110 cardinal customers successful Brazil.

• With a immense lawsuit base, Nu is focused connected expanding profitability done cross-selling fiscal and different services.

• These 10 stocks could mint the adjacent question of millionaires ›

Nu Holdings (NYSE: NU) is making waves successful the fintech concern sector. Since the commencement of the year, the Latin American fiscal services institution has surged 58%. The slope has done a stellar occupation of serving regions starved for quality, affordable banking services, leveraging its integer level to link with hundreds of millions of customers.

The company's banal show reflects capitalist optimism astir Nu's maturation trajectory and aboriginal prospects. The slope has a ample lawsuit basal to merchantability to and is targeting different markets ripe for disruption. Here are 3 reasons to put successful Nu Holdings today.

For galore years, Brazilian consumers faced a concentrated and predatory banking strategy dominated by conscionable 5 banks. The concern was truthful terrible that recognition paper involvement rates reached 160%, and erstwhile concern curate Paulo Guedes described it arsenic a "cartel."

Changes paved the mode for Nu's neobank model. By operating a digital-only platform, Nu challenged the accepted banking exemplary by offering escaped integer accounts and recognition cards with nary yearly fees, attracting tens of millions of customers. Today, Nu serves much than 110 cardinal customers successful Brazil, oregon astir 60% of the country's big population.

Nu presently holds aggregate regulatory licenses, letting it connection products and services successful payments, credit, financing, investments, and securities. However, Brazil has made regulatory changes restricting the usage of the word "bank" by those without a banking license, truthful Nu is aiming to get a tiny slope successful Brazil sometime adjacent year.

Being a afloat licensed slope provides legitimacy with consumers, particularly successful a marketplace wherever spot successful fiscal institutions is paramount. This licence could besides marque it easier for Nu to entree markets reserved for banks, thereby lowering its outgo of capital.

Nu has a immense lawsuit basal of 127 million, and sees this arsenic an accidental to make worth and cross-sell to those customers. It views this arsenic a means to heighten the profitability and economics of its wide business. Nu offers a scope of fiscal services, including lending, investments, and insurance. It besides offers question and cellular services, on with an integrated marketplace platform.