Why This Overlooked Fintech Player Could Reshape Latin American Banking

Most investors chase headline-grabbing artificial intelligence stocks, but truly transformative opportunities often hide in plain sight. Nu Holdings represents precisely this type of underestimated player—a company that established market dominance in Brazil’s fintech revolution while remaining largely absent from mainstream investing discussions. With aggressive expansion into Mexico and Colombia, substantial room to deepen relationships with existing customers, and clear pathways to profitability, Nu could deliver exceptional returns for those willing to look beyond the AI-obsessed consensus.

The journey that made Nu Holdings overlooked also explains its potential. When the company launched, it targeted a fundamental problem: Brazil’s traditional banking system remained largely inaccessible to ordinary citizens. High barriers to entry locked out lower-income populations entirely, while even affluent customers faced inconvenience and limited options. Nu’s founders solved this through a user-friendly digital platform that democratized access to essential financial services. Over the past decade, this approach resonated so strongly that more than 60% of Brazil’s entire population now uses the platform, spanning every demographic category.

Breaking into Three Major Markets

The real growth story extends beyond Brazil’s impressive domestic penetration. Nu has begun establishing operations across Latin America’s largest population centers—Mexico and Colombia. By the end of 2025’s third quarter, the company had captured 14% of Mexico’s adult population and 10% of Colombia’s adult population, despite being relatively new to these markets. During that same quarter alone, Nu onboarded 4.3 million new members, demonstrating the velocity of customer acquisition across the region.

This expansion represents merely the opening chapter. Latin America’s digital banking revolution remains in its infancy, with millions of unbanked and underbanked citizens still seeking alternatives to traditional finance. As regulatory environments mature and smartphone penetration increases, Nu’s positioned to capture substantial share gains. The company is simultaneously pursuing entry into the United States, signaling ambitions beyond Latin America’s borders.

The Untapped Monetization Opportunity

Beyond acquiring new customers, management has identified an equally compelling opportunity: monetizing the existing base of more than 60 million Brazilian users. Currently, Nu generates revenue primarily from transaction fees and interest income on deposits. However, the platform has begun introducing sophisticated new services targeting affluent segments, including wealth management and premium banking products. These aren’t speculative ventures—they represent genuine customer demand from a base that has grown increasingly dependent on Nu as their primary financial institution.

This cross-selling potential could dramatically amplify profitability without requiring the company to acquire expensive new customers. As the user base engages more deeply with the platform and conducts more complex financial activities, average revenue per user should expand substantially. For a company already operating at scale with network effects working in its favor, this represents a particularly powerful growth lever.

What the Buffett Exit Reveals

Berkshire Hathaway’s early backing of Nu before its 2021 initial public offering lent the company significant credibility, branding it as a “Buffett stock” in many investors’ minds. However, in 2024 Berkshire completely exited its position—a decision that initially sparked questions about the company’s trajectory. Those concerns haven’t materialized. Despite losing Buffett’s cachet, Nu climbed 62% over the subsequent twelve months, suggesting the market had underappreciated the company’s fundamental strengths.

This dynamic actually mirrors Buffett’s own investment philosophy. He consistently searches for well-managed companies trading below intrinsic value, exactly the type of overlooked opportunity that could compound substantially over a decade. Nu’s performance since Berkshire’s exit demonstrates that the company’s value proposition extended far beyond its famous investor’s endorsement.

The Path Forward

History offers instructive examples of how dramatically returns can compound when investors spot transformative companies before the broader market recognizes them. Nvidia and Netflix both seemed speculative at earlier points in their development, yet patient investors who recognized their potential reaped extraordinary gains. Nu Holdings exhibits similar characteristics—a proven business model in its core market, expansion into adjacent high-potential territories, and considerable runway to increase profitability per customer.

For investors willing to look beyond consensus picks and current market darlings, this overlooked Latin American fintech operator warrants serious consideration. The combination of market leadership in Brazil, aggressive geographic expansion, and nascent monetization opportunities creates a compelling case for meaningful long-term value creation.