U.S. investors have no shortage of opportunities to deploy capital within the U.S. financial services industry. However, it’s a good idea to broaden your horizons. There are booming businesses in other parts of the world.
Nu Holdings (NYSE: NU) is an excellent example. It has become a banking power in Latin America. And it now has a market capitalization of $59 billion. Here’s what investors should know before buying the fintech stocks.
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All signs point to continued success
Nu’s value proposition is clear. It provides low-cost, transparent, and easily accessible financial services to an audience that was not only historically underserved but also unfamiliar with a digital-first model. Founded in 2013, this company continues to see phenomenal growth as its adoption skyrockets.
As of March 31, Nu had more than 135 million customers, up 14% year over year. An ever-expanding user base drives the top line. First quarter 2026 revenue increased 42% to $5.3 billion.
Most users are located in Brazil, the company’s home country. Nu has a presence in Mexico (15 million clients), where it is the third largest financial institution. And it has about 5 million clients in Colombia. Additionally, while obtaining the necessary approvals, the company plans to begin operations in the United States next year, which would be an important milestone.
Even in hypergrowth mode, Nu is reporting considerable profits. Its first-quarter net income increased 41% year over year, resulting in a margin of 16.4%. Just four years ago, in the first quarter of 2022, the company posted a net loss of $45 million.
Understandably, by avoiding the costly overhead that comes with operating a network of physical bank branches, the company uses a more efficient model. Is return on capital (ROE) was 29% during the first quarter. This is significantly higher than JPMorgan Chasea dominant and scaled financial services entity, reporting an ROE of 19% last quarter.
Can this fintech stock be a long-term winner?
Nu’s financial performance has been exceptional. But the action is under pressure. It has fallen 28% in 2026 (as of June 11), although it has risen 61% in the last three years.
Chief Financial Officer Guilherme Lago, a seven-year veteran of the company, will leave his position on July 13. Nu’s expected credit losses increased 76% year over year, which could be spooking the market. Analysts also downgraded the stock earlier this month.