Nubank became Latin America’s largest bank without an actual location!

7 Apr 2026 · 1 min

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In this concise commentary, Dan Novaes explains how Nubank grew into one of Latin America’s biggest banks by completely eliminating physical branches. He contrasts the traditional banking model—where customers must visit branches for account opening, loans, and support—with Nubank’s mobile‑only approach, where everything is done through an app in minutes. By removing rent, in‑person staff, and line‑ups, Nubank dramatically cuts operating costs; those savings are passed to users as lower fees and a smoother user experience. The model attracted millions, especially people previously excluded from banking. Novaes frames this as a form of innovation that does not improve existing systems but questions whether the system (branches) should exist at all.

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Nubank became one of the largest banks in Latin America without building physical branches. In traditional banking, branches are everywhere. Customers visit in person to open accounts, apply for loans, or resolve issues. Nubank removed that completely. No physical locations, no lines, no in-person service. Everything happens through a mobile app. Opening an account takes minutes. Customer support is handled digitally. Transactions are instant. The model reduces costs. No rent, Fewer employees per location. Simplified operations. Those savings are passed to customers through lower fees and better user experience. Millions of people joined, especially those underserved by traditional banks. Nubank didn't improve branches. It removed them. Sometimes innovation is not about upgrading a system. It's about questioning whether the system needs to exist at all.