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Sensor Tower · Seema Shah · September 2024
Brazilian Neobanks Offer Glimpse into the Future of Digital Banking
Brazil is setting the pace for the adoption of digital banking as 43% of the population has a neobank account. Sensor Tower data shows that the market may have reached saturation in Brazil as MAUs across Brazilian neobanks fell in 3Q24 QTD while MAUs are continuing to climb throughout the rest of the LatAm region. Additionally, ST data illustrates how the top neobanks are promoting their exclusive benefits in hopes of converting new customers.
Key Takeaways:
Brazil’s Nubank, the largest neobank in Latin America, reported over 100mn customers in 2024, and is still averaging 25% YoY growth in 1H24, in line with ST’s 23% YoY growth in mobile app MAUs for Nubank in the same period
Potentially propelled by Nubank’s rapid ascension, Brazil has seen the fastest adoption of neobanks across ST’s LatAm region, with over seven neobanks averaging over a million MAUs. However, a decline in Brazil MAUs for 3Q24 QTD (-6% YoY) could indicate that growth is starting to slow, while MAUs for LatAm neobanks not based in Brazil are seeing MAUs increase, up 3% YoY in the same period (ex-Lulo)
Although global downloads for the neobank cohort increased 15% YoY in 2Q24, this was slightly below the 21% YoY growth exhibited by neobanks outside Brazil, which highlights an opportunity for rapidly emerging neobanks to capture a larger audience, highlighted by Klar’s 200% YoY growth in 2Q24
Nubank’s percentage of retained users has plateaued over the past 3 years (94%), in line with trends in its user churn rate, as the company has only seen 5% of users churn since 2020, well below the average of 25% within the financial services industry
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