Brazilian Nubank's IPO is impressive.
It's not just the $ 41 billion valuation, it's all the trimmings.
For star investor Warren Buffett, it was the first ever investment in one of the neo banks at the beginning of 2021.
His holding company Berkshire Hathaway has so far had more to do with traditional big banks.
What impresses investors so much is the rapid growth and clear focus on Latin America.
40,000 new customers a day speak for themselves here.
However, these bring in relatively little money. The strategy will be to first bring many of the customers who are still without an account to Nubank on favorable terms and then turn them into cash later. The yields are still very low. It's not without risk. In Colombia and Mexico, the engine of growth is not really gaining momentum and is stuttering. If economic growth comes to a standstill in Latin America, it should hit Nubank a lot.
In addition, the competition is fierce, especially Chime from the United States is rated even higher by investors - at $ 2,000 per customer instead of $ 1,500 per customer.
N26 in Europe is going the opposite way and concentrating more on the core markets than on unlimited growth - and is rated significantly lower.
At the moment, Nubank's strategy seems to be working better.