Nubank, one of the most important digital banks announced that it has raised US $ 500 million from Berkshire Hathaway, which is led by Warren Buffett
June 9, 2021, | AtoZ Markets–The digital bank Nubank has received today $500 million of investment from the financial group Berkshire Hathaway.
The news is important, because we must remember that this holding company is led by billionaire Warren Buffett, who had repeatedly mentioned his little interest in this market sector.
Berkshire Hathaway is an American company that owns shares in several important business groups and has stakes in some well-known companies such as Walmart, American Express, Coca-Cola and Wells Fargo.
In addition to this, Berkshire Hathaway announced that it has sent an additional $ 250 million to other technology investors in emerging markets, including the US fund Sands Capital.
What Is Nubank
Being a digital bank, Nubank does not have physical bank offices or physical points, it works by WhatsApp phone, networks such as Twitter, and especially with the Nubank application, from which customers can control their expenses, have information on their balances, deadlines and other information.
“The new equity financing comes as a result of Nubank’s accelerated and sustainable growth. The company is currently the world’s largest digital bank by number of customers, having surpassed the 40 million mark,” Nubank said in a statement.
Nubank operates in Brazil, Mexico and Colombia, and according to the words of its creators “the company was founded with the mission of empowering people to have control over their money through fully digital banking services, putting an end to abusive fees and offering a human service to its clients”.
This digital bank offers great advantages to its users and one of them is that all money deposited in Nubank digital account immediately starts paying interest at 100% the Interbank Deposit Rate, every business day.
Nubank’s CEO, David Vélez born in Colombia, said that financing would help to “democratize access to financial services” in Latin America. He said only half of people in the region have bank accounts, and only about 21% use credit cards.
“No one thought it was possible to change the financial system, but we were always convinced that there was room for disruption and innovation and, more importantly, that clients deserved better service,” Vélez said.
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