Nubank launches Nubank+, a new benefits programme

Nubank, the Brazilian neo-bank, is launching Nubank+, a new offering combining financial services and additional benefits. Designed to enrich the customer experience, this initiative is part of a diversification strategy, a trend also observed among other players in the sector.

FACTS

• Brazilian neo-bank Nubank is announcing the roll-out of Nubank+, offering customers more advantages on financial and non-financial services.

• The main benefits for customers are:

  • Instant cashback of 0.5% on the payment card, which can be converted into miles.

  • Access to the Warner Bros Discovery (WBD) Max streaming platform, giving customers access to its basic ad-supported monthly package for the first 12 months.

  • Free, unlimited withdrawals from Banco24Horas ATMs.

  • A personal payment assistant, which allows customers to organise and pay their bills on a monthly basis, with a range of features including intelligent alerts.

• Nubank wants to offer a little recognition to its loyal customers by offering NuBank+ to those who spend more than R$3,500 a month with their payment card.

• Other customers can take advantage of Nubank+ for R$29/month.

• Nubank+ is available to customers over the age of 18 who have a Nubank payment card, with the exception of the "Building Limit" version.

• Ultravioleta customers also have access to the Max monthly package with advertising as part of their benefits.

• The programme will be launched in the coming weeks, according to the neo-bank.

CHALLENGES

• Diversification as a new development strategy for new banks: in order to continue to grow and develop, fintechs (particularly new banks) are continuing to diversify their revenues, build customer loyalty and ensure their future growth.

• Beyond banking to create a unique customer experience: The launch of Nubank+ underlines the bank's focus on promoting unique experiences. Customers can enjoy their leisure time in ways that go beyond the financial products and services offered by the bank.

• The super-app, the Eldorado of financial players: super-apps are continuing to gain ground in the financial sector. Following initiatives such as Revolut, financial players are looking to cover all their customers' needs. Ultimately, they all want to get closer to customers using the app on a daily basis.

MARKET PERSPECTIVE

• Rewards programmes are still very much in vogue and are a good way of building customer loyalty, particularly for banks and fintechs. A variety of solutions are emerging, and everyone is trying to make the most of them. On the American continent, Bank of America recently concluded a partnership with Starbucks to offer rewards for purchases made with a BoA card in Starbucks stores. On this side of the Atlantic, Joko has opted for a B2C cashback model, an atypical business model among B2B2C offerings, but one that seems to be bearing fruit, as Joko is due to launch in the United States this year.

• The roll-out of Nubank+ also follows the launch of a mobile operator business by Nubank a few weeks ago, reinforcing the bank's diversification strategy. Like its Brazilian and international competitors, Nubank sees the telecoms market as an opportunity that it intends to seize.

• Even if the trend is towards diversifying the range of products and services offered to customers, some banks are also identifying other ways of boosting their revenues. This is the case of Revolut, which this week announced that it intends to use its customers' data for targeted advertising. This initiative would be a way of generating new revenue while avoiding the burden of excessive investment.