nubank‘s (NYSE:NOW) senior executives explained how the company’s AI underwriting framework is supporting sustainable expansion in credit services. The update from Nubank’s professional team highlighted that key risk protocols remain firmly in place and default levels remain stable even as more customers access finance. Financial Affairs Director Lago Guilherme Joined Credit Card Foundations Executive Director Jeremy Selesner and Tyler HornVP of Credit Risk to explain the strategy.
They emphasized the role of refinement data analytics and predictive modeling to responsibly expand credit availability while maintaining the overall health of the credit book.
Since its founding, Nubank has taken a different path, launching with credit cards in Brazil rather than turning to simpler deposit or payment products.
This is a pre-commitment lending This meant that the bank had to manage economic fluctuations from the very beginning.
Explaining that it would be much more difficult to postpone the transition to credit-oriented operations, Selesner said, “We had to manage credit and economic cycles.”
The initial focus yielded a massive repository of over 100 terabytes of customer behavior information, as well as successive waves of refined models consisting of seventeen iterations for credit limit adjustments and ten iterations for customer acquisition.
a special risk The team now reviews more than 1,000 tracking indicators each week.
The latest breakthrough is nuFormer, a transformer-based AI model that achieves a 70 percent reduction in predicted risk for comparable customer segments over previous versions.
Successive upgrades to the modeling line deliver roughly three times the performance jump typical of a standard model refresh.
More importantly, nubank It channels these technological gains into sharper customer selection rather than streamlining approval criteria.
This sensitivity led to a 50 basis point increase in the company’s credit card share in the last quarter of 2025. spending Volume in Brazil; the largest single gain recorded by any competitor in the last decade. Risk discipline remains uncompromising.
“We continue to expect the future to be worse than the past in order to maintain this bar of resilience,” Horn emphasized.
As a result, existing portfolio charge-off rates remained stable at 2.8 to 2.9 percent in the fourth quarter of 2025. Executives noted that there was significant room for further responsible growth.
Revenue per active customer averaged $15 in late 2025; this was well below the traditionally reported figure of around US$40. Brazil banks. This gap reflects a customer base that is just at the beginning of its credit journey, leaving ample room to provide more comprehensive service to existing users.
General credit While the portfolio increased by nearly 40 percent compared to last year, customers approved holding approximately $11 billion in loans on unused lines.
The timing of the video release is consistent with Nubank’s confirmed role in the federal government’s Novo Desenrola Brasil debt relief program. Beyond helping qualified participants, bank launched an in-house initiative for those who fall outside the scope of official compliance.
Both efforts are completely nubank Use the app and trust personalized assessments of repayment ability.
Built-in safeguards limit future debt accumulation, and users receive ongoing guidance on budgeting and financial habits to support lasting recovery and healthier money management. By blending artificial intelligence Have appropriate risk standards, nubank It continues to demonstrate that broader credit coverage and portfolio strength can go together, creating a model for fintech platforms around the world. Latin America.
