This is a gamechanger for Nu, but I think your timeline is actualy conservative. The OCC proces can be brutal and I wouldnt be suprised if it takes 3-4 years before they can really start operations. The illegal immigration angle is interesting, I hadnt thought about that political risk. The remittance play is genius though, capturing that $160B flow between US and LatAm could be huge for engagement on both sides. My concern is customer acquisition cost in the US will be way higher than Brazil or Mexico. Can they really scale profitably in such a competitive market?
CAC is high if you go after the high-income customers with stadium sponsorships, CNBC, and Super Bowl ads.
CAC will certainly be higher than in Latam, but Nu is a known brand with Latinos. You would be surprised how many customers they could acquire with bus banners in Miami and California.
This is a gamechanger for Nu, but I think your timeline is actualy conservative. The OCC proces can be brutal and I wouldnt be suprised if it takes 3-4 years before they can really start operations. The illegal immigration angle is interesting, I hadnt thought about that political risk. The remittance play is genius though, capturing that $160B flow between US and LatAm could be huge for engagement on both sides. My concern is customer acquisition cost in the US will be way higher than Brazil or Mexico. Can they really scale profitably in such a competitive market?
Hey, I just noticed your comment.
CAC is high if you go after the high-income customers with stadium sponsorships, CNBC, and Super Bowl ads.
CAC will certainly be higher than in Latam, but Nu is a known brand with Latinos. You would be surprised how many customers they could acquire with bus banners in Miami and California.