American investors have no shortage of opportunities to deploy capital within the U.S. financial services industry. However, it’s a good idea to expand your horizons. There are booming businesses in other parts of the world.
Now Holdings (NYSE: NOW) is a prime example. It has become a banking powerhouse in Latin America. And it now sports a market cap of $59 billion. Here’s what investors need to know before buying the fintech stock.
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All signs point to ongoing success
Nu’s value proposition is clear. It provides low-cost, transparent, and easy-to-access financial services to an audience that was not only historically underserved but also unfamiliar with a digital-first model. Founded in 2013, this business continues to register phenomenal growth as its adoption soars.
As of March 31, Nu had over 135 million customers, up 14% year over year. An ever-expanding user base propels the top line. First-quarter 2026 revenue jumped 42% to $5.3 billion.
Most of the users are in Brazil, the company’s home country. Nu has a presence in Mexico (15 million customers), where it’s the third-largest financial institution. And it has nearly 5 million customers in Colombia. Additionally, while it obtains the necessary approvals, the business is planning to start operations in the U.S. next year, which would be a major milestone.
Still in hypergrowth mode, Nu is reporting sizable profits. Its Q1 net income rose 41% year over year, resulting in a margin of 16.4%. Just four years ago in Q1 2022, the business posted a $45 million net loss.
It’s understandable that by avoiding the costly overhead that comes with operating a network of physical bank branches, the company runs a leaner model. Its return on equity (ROE) was 29% during Q1. This is significantly higher than JPMorgan Chasea dominant and scaled financial services entity, which reported an ROE of 19% last quarter.
Can this fintech stock be a long-term winner?
Nu’s financial performance has been exceptional. But the stock is under pressure. It has fallen 28% in 2026 (as of June 11), although it has climbed 61% in the past three years.
Chief Financial Officer Guilherme Lago, a seven-year company veteran, will step down on July 13. Nu’s expected credit losses were up 76% year over year, which might be scaring the market. The stock was also downgraded by analysts earlier this month.