Nubank in the US: Could LatAm's biggest challenger shift US banking?

Setting the baseline: An overview of the LatAm market

When we mapped FinTech Insights' LatAm database, which includes 21 incumbents and challengers, we uncovered a fairly broad range of capabilities:

• 14 out of 21 firms support intrabank P2P transfers, and 12 out of 21 support interbank P2P transfers
  
  
• Barcode and QR scanning, and bill payments via optical code scans are becoming popular, reflecting the region's huge digital progress following the Covid-19 pandemic. 
  
  
• 12 out of 21 firms support virtual card creation, management, and usage controls
  
  
• 16 out of 21 firms offer instant, round-the-clock help via bot agents. A good number of firms also have customer engagement and reward features, with 8 out of 21 allowing users to view cashback options
   
• 9 out of 21 firms support investing in different instruments, including stocks, bonds, and mutual funds. 

At the other end of the spectrum, LatAm firms are weak on junior accounts (only offered by 3 firms), checks (only 2 firms), and interface and card customization.

The US perspective

For our US data sample, we picked eighteen challengers and no legacy banks or credit unions.

As in LatAm, peer-to-peer payments are a must-have feature, but intrabank payments are more widely supported than interbank transfers: 7 out of 18 for the former, compared to just 1 out of 18 for the latter. 

This is also in contrast to US legacy banks: 18 out of 19 banks with a nationwide presence on FinTech Insights' database support both intrabank and interbank transfers.

Like their LatAm counterparts, our US sample are strong on customer support and engagement. 11 out of 18 have bot agents, and 8 out of 18 offer cashback rewards. 

US challengers are stronger on open banking and investing, with 8 out of 18 supporting robo-investing compared to just 3 in LatAm. 11 out of 18 US challengers also support depositing checks. Which, while in decline, are still in common usage in the US, compared to the rest of the world.

Nubank's place in the US challenger ecosystem 

So, if Nubank were to enter the US market today, how would it stack up compared to other challengers?

Assuming Nubank launches with the same set of features it has in its home market of Brazil, FinTech Insights' functionalities overview graph reveals it would be second only to SoFi in terms of breadth of functionality. 

But, while this would make it strong on several fronts, Nubank would also have work to do in some areas that, though not high on the list of LatAm customers' priorities, are very important in the US.

What Nubank does well

The gap analysis graph below shows Nubank on par with US challengers in 12 areas that, in our view, are must-haves in the American market. This would put Nubank in a relatively strong position from Day 1 of its US operations.

Nubank users can set savings goals, execute bill payments, view available cashback, and connect other accounts via open banking. The Nubank app also supports multiple investing options, including cryptocurrencies, stocks, ETFs, and mutual funds, and enables users to chat both with bot agents and live representatives.

Nubank also has the following features that are less common in the US and, so, could give it an edge:

• Junior accounts, managed by a parent. The adult can monitor transactions, order a debit card, and create savings goals for the child. 
  
  
• Virtual cards. While very popular in LatAm (12 out of 21 firms in our LatAm sample support them), only five US challengers have the capability
  
  
• Interbank P2P transfers to a phone number
  
  
• Customization, specifically for users who need accommodations, for example because they're visually impaired

Where does Nubank have an edge on US challengers?

Nubank has a few features no other US challenger offers and, so, which it could lean into as differentiators. 

First, Street Mode, which enables a user to set transaction limits when their phone isn't connected to a preselected WiFi network. No other firm on our database offers a similar security feature. 

Second, together with the ability for users to customize the interface according to their special needs, Nubank also offers accessibility features like video content and customer service reps who know sign language. 

As of 2025, about 70 million Americans live with some form of disability: a significant number of people who are poorly served by the current crop of challengers.

Third, Nubank supports intrabank transactions via optical codes and voice control, bill payment options like direct debit, and more secure payments via disposable virtual cards. The latter feature is rare across the board. 

Fourth, Nubank users can buy mobile data from the app. This is also a rare feature, with only 6 firms  in our worldwide database supporting it, none of them in the US.

Potentially significant feature gaps

Nubank's most glaring gap, in a US context, is support for depositing checks. This is a US market idiosyncrasy, and an important one if Nubank is to compete on the same level. 

Similarly, 60% of Americans expect to use a robo-investor. Which means the fact it's currently unsupported on Nubank is a disadvantage. 

Other missing features we've identified that, while not as critical, might also put Nubank at a disadvantage in the US are:

• An option for users to interact with a live representative asynchronously, that is, send and receive messages via an in-app messaging service   
  
  
• Importing P2P recipients from their phone contact list
  
  
• A cash reward referral program. Offering a cash reward to existing customers for recommending Nubank, and new customers a reward for joining could be a powerful inducement that would help Nubank win more customers faster and establish itself as a serious contender. 

Looking ahead: Can Nubank succeed in the US?

Conquering a market where 85% of consumers report being happy with their bank may seem like a tall order. 

The flipside? Loyalty's increasingly at a premium, with 37% willing to switch for better rewards and better service.

Without a crystal ball — and given the practical realities of entering a new and unfamiliar market — it's impossible to tell whether Nubank will be able to entice these customers. 

That said, on paper, its feature set makes it a strong contender. With a few enhancements — on checks, robo-investing, and customer support, together with a cash reward referral program — it might be well on its way to US success.