What Is Nubank? How It Works, Features, Development & Cost to Build a Neobank App

Nubank is a Brazilian neobank and the largest fintech bank in Latin America headquartered in Sao Paulo. A neobank is an alternative bank that offers banking services digitally without any physical presence.

Neobanking is a mushrooming field that has grown exponentially in recent years. The Neobanking market size is expected to reach USD 1,210 billion by 2029 from USD 261.4 billion in 2025. A huge compound annual growth rate (CAGR) of 48.5%. Thus, it is a sector that businesses are looking forward to tapping into.

Nubank provides a wide array of financial products and services to individuals and small business customers. These include insurance, loans, and savings accounts.

In this blog post, we will understand Nubank, its business model, how to develop an app like Nubank, what you need to make a neobanking app, the cost to develop an app like Nubank, features, and much more.

So, let us begin!

What is Nubank?

Nubank is the biggest neobank in the world in terms of market capitalization, which is more than USD 64 billion as of 2025. It also has offices in Berlin, Buenos Aires, and Mexico.

It offers a digital checking account that allows customers to earn interest, check balances, send and receive payments, and do a lot more. A customer gets a debit or credit card to withdraw money from ATMs and make in-store payments and earn cashback rewards.

The neobank also offers services to businesses. Similar to personal accounts, business accounts enable owners to send and receive money, access transaction history, and so on.

Both individuals and business owners can apply for personal loans and life insurance via Nubank Life. After launching in Brazil, the neobank now provides services across Southern America, including Argentina and Columbia. It also has a presence in Mexico.

Nubank offers both website access and mobile banking. Its mobile apps are available for both Android and iOS platforms.

Nubank Business Model

The Nubank business model aims to create an ecosystem of financial products and services that it can offer to individuals and businesses. The neobank works primarily on the customer pain points of accessing banking accounts and mitigating high-interest rates on availing financial services.

Like traditional banks, Nubank offers banking and financial services and products to generate revenue. It makes money via:

• ATM Withdrawal Fees
• Insurance Premiums
• Interchange Fees
• Interest from Loans
• Interest on Customer Deposits
• Overdraft Fees
• Referral Fees
• Subscriptions

After offering merely a savings account initially, Nubank now offers a multitude of services to its 115 million+ customers, including personal loans, insurance, and credit cards.

How Does Nubank Make Money?

In this section, we will explain the various revenue streams of Nubank, which are:

1.Cash Withdrawal Fees

Nubank enables its customers to withdraw cash from the ATMs of its partners, Banco24Horas and Saque e Pague, for a withdrawal fee. Although a significant chunk of this amount is paid for covering the cost of allowing customers to use its partners’ ATMs, the remaining portion counts as a revenue stream for the Brazil-based neobank.

2.Insurance

The neobank via Nubank Life provides insurance products and services to its clientele. In addition to the default plans, customers can opt for additional coverage that includes accidental cover, financial assistance in case of disability, funeral costs, and hospitalization bills.

3.Interchange Fees

The interchange fee is paid by the merchant that receives a payment made from a Nubank debit or credit card. It is 1 percent of the purchase price. It is not completely received by the neobank but is also shared with Mastercard, who is the issuer of the cards.

4.Interest on Cash Deposits

Customers get interest on storing their money in a Nubank savings account. The bank lends this money to other financial institutions and earns interest.

5.Loans

Customers can also apply for loans from Nubank. Each loan is repaid in monthly repayments that include a fraction of the principal amount and a little interest. The cumulative interest amount depends on the total amount of the loan and the repayment period.

Since Nubank collects user data – including total income, location, and spending habits – it can precisely assess the loan amount that it can offer to its customers. This not only lowers the default rate but also makes it more likely for customers to opt for personalized loan offers.

6.Overdraft Fees

Extending the limit of the provided credit card is called overdraft. Nubank charges a nominal fee in the form of overdraft fees. Keeping the overdraft fees low compared to other neobanks is what helped Nubank to book a profitable deal.

The cost levied by a bank on its services depends on the fees that it has to pay, and since Nubank had no physical offices to maintain, it can book profits even with charging less on a negative balance (the overdrafted amount).

7.Referral Fees

The premium credit card, Ultravioleta, facility offers a galore of ways for the neo bank to make money. One of the most important revenue streams for Nubank via Ultravioleta is referral fees.

Referral fees is the compensation that Nubank receives from its partners for encouraging customers to make purchases at their respective stores.

8.Subscription

Nubank launched Ultravioleta in 2021, a Mastercard Black premium credit-card/experience targeted at high-income clients. The card is made of metal, offers 1% cashback on credit purchases (which grows at 200% of the CDI and never expires), and includes travel perks, insurance, and VIP lounge access. 

It charges a monthly subscription fee of R$ 49, but this fee is waived if the customer either spends at least R$ 5,000 in credit card transactions per billing cycle, or has at least R$ 50,000 invested or saved in Nubank / Nu Invest.

A Timeline of Nubank Operations

Let’s know about the progress made by the biggest neobank, since its inception, in brief:

Founded in 2013.

2014:

• Launched its first financial product, a Mastercard credit card, with no annuity fees.
• First card transaction in April.
• Raised $14.3 million in Series A funding from Sequoia Capital, Kaszek Ventures, and Nicolas Berggruen in September.

2015:

• Raised $30 million in Series B Investment Round with Tiger Global Management and existing backers in June.

2017:

• Launched Nubank Rewards, a loyalty program.
• Opened an engineering hub in Berlin in December.

2018:

• Become a unicorn startup (Valued at $1 billion or more).
• Tencent bought a minority stake for $180 million in October.

2019:

• Launched personal loan product and digital savings account.
• Surpassed 10 million customers in July.
• Launched credit card in Mexico in August.

2020:

• Became the largest neobank by surpassing the user base of Chime and Revolut.
• Acquired Plataformatec in January.
• Doubled its customer base to 20 million in January.
• Acquired Cognitect in July.
• Announced the acquisition of Easynvest in September.
• User base increased to 30 million customers.

2021:

• Berkshire Hathaway took a $500 million stake in the neobank in June.
• Series G funding of $750 million in June.
• Opened IPO in December.

2022:

• Launched crypto investment platform, Nucripto, in 2022.

2023:

• Scheduled to launch its cryptocurrency, Nucoin, in the first half of 2023.

2024:

• Reached 110 million customers; acquired Hyperplane for AI/data intelligence; reported $11.5B revenue; received multiple global awards.

2025 (so far):

• Strong Q1 profit growth; expanded Mexico operations via Oxxo partnership; progressed toward Mexico banking license; applied for U.S. bank charter; included in TIME’s 2025 Best Companies list.

What Do You Need to Make a Neobank App Like Nubank?

In order to start selling your services and products as a neobank, you must have an app and a website. At its core, Nubank is a fintech company. Therefore, you need fintech apps for replicating its success.

You can start with a Nubank like app with basic features and then build it over time to accommodate specific needs of your customers. Here’s what you need to do to realize this:

Underline Your App Requirements

Before getting started with developing a neobanking app, you need to underline all the requirements and objectives that you wish to achieve.

For starting out, you can get a POC to ensure the viability of your project. Next, you can leverage an MVP to start offering your services all the while collecting feedback that you can use in further development cycles to add features to your apps and make them bigger and better.

Hire a Fintech App Developer

There are several benefits that you can reap in by hiring a fintech app developer like Apptunix. No matter what type of fintech or neobanking app you want to develop, we can help you out with different requirements by providing you with. Some of which are:

• A dedicated development team that you can manage fully.
• Estimated timeline and the budget for accomplishing your project.
• Experienced developers comfortable in working with a slew of mobile and web development technologies.
• Flexibility with different software development models to choose from.
• Invaluable advice in realizing your project.
• Best offers and deals.

Check out fintech app development to know more about developing neobanking apps. Apptunix has been helping fintech businesses for over a decade. We have incubated performant and multi-functional solutions for requirements of all types.

Also Read: Your Ultimate Guide to Fintech App Development Cost

How to Develop an App Like Nubank: Step-by-Step Process

Thinking of launching your own neobank? 

Well, building a digital banking app like Nubank takes smart planning, the right tech, and strong compliance. Here’s how you can do it right.

Step 1: Understand Nubank’s Core Strengths

Before starting Nubank app development, study why it works. Nubank simplified banking by removing hidden fees and offering instant access. Its clean design, fast approvals, and customer-first approach made it a global leader. Learn from that simplicity.

Step 2: Define Your Market and Compliance Needs

Decide who you are building for. Whether for individuals, freelancers, or small businesses. Check regional banking laws and licensing requirements early. Compliance is the backbone of any neobank app development project.

Step 3: Pick the Right Features

Start small and expand later. A Nubank clone app should include:

• Easy onboarding and KYC
• Real-time payments
• Budget tracking and insights
• Card management
• Chat support and notifications

Add advanced tools like loans, rewards, or crypto once users grow.

Step 4: Choose a Secure Tech Stack

Scalability and security matter most in Nubank clone development. Use cloud infrastructure, APIs, and encryption for speed and safety. Build on microservices so features can evolve without downtime.

Step 5: Work With Experts

To build an app like Nubank, partner with fintech developers who know compliance, UX, and data security. A specialized digital banking app development company like Apptunix ensures your app is fast, secure, and regulation-ready.

Step 6: Test and Launch Smoothly

Before going live, test every feature under real conditions. Gather feedback, fix bugs, and optimize performance. Once stable, launch gradually and track how users interact to plan future updates.

How Much Does It Cost to Develop an App Like Nubank?

Wondering how much it costs to build a neobank app like Nubank? The answer depends on your app’s complexity, design, and feature set. On average, the cost to develop a neobank app ranges between $30,000 and $300,000+, depending on where it’s built and how advanced you want it to be.

• Basic Neobank MVP

A simple Nubank clone app with core features like onboarding, account management, fund transfers, and card linking can cost between $30,000 and $60,000. This is ideal for startups testing the market.

• Mid-Level App (Like Nubank’s Early Version)

For a scalable digital banking app development project including loan modules, analytics, and customer support, the cost rises to $60,000 – $100,000. This range suits growing fintech companies aiming for long-term impact.

• Advanced Neobank Platform

A full-fledged Nubank-style neobank app with AI-based insights, crypto support, biometric security, and global payment integration can reach $100,000 – $300,000+. These apps match Nubank’s current ecosystem in speed, design, and scale.

Conclusion

Nubank is one of the best examples of successful neobanks offering better financial services than conventional banking institutions. The neobank has successfully demonstrated the power of mobile apps in the modern world and the degree to which people (and businesses) rely on them to make many aspects of life convenient, including managing the finances.

There’s a lot you can learn by dissecting Nubank’s success. If you’re planning to jump onto the neobank bandwagon then it is the right moment in time to do so. We wish you all the best!