Banking on the Future: A Modest Proposal

One does not require a king’s ransom to participate in the grand, often ludicrous, theatre of finance. Nor, mercifully, is one presently compelled to chase the shimmering mirage of artificial intelligence, a field where hype currently outstrips substance by a ratio that would impress even the most audacious of charlatans. A mere five hundred dollars, properly deployed, can yield… well, let us say, a glimmer of hope in these increasingly opaque times.

I propose a modest investment in two institutions – Nu Holdings (NU +2.05%) and SoFi Technologies (SOFI +0.20%) – entities that, despite operating in the notoriously staid world of banking, possess a certain… vitality. They are growing, yes, but more importantly, they are attempting to dismantle the antiquated structures that have long held the financial world in their grip. A commendable, if perhaps naive, endeavor.

Let us consider SoFi. It began, as so many things do, on the hallowed grounds of Stanford University, initially as a purveyor of student loans. A humble beginning, one might think. But it has since metamorphosed into a full-fledged digital banking platform, aspiring to be a one-stop shop for all one’s financial needs. A rather ambitious undertaking, considering the inherent human tendency to require multiple institutions to mismanage one’s funds.

Its success lies in simplicity. An intuitive mobile application, a broad array of products, and a marketing strategy that, while not entirely devoid of cynicism, has proven remarkably effective. As of late 2025, SoFi boasts 13.7 million customers, a 35% increase year over year. A respectable number, though hardly enough to challenge the established behemoths. But it is a start. And the revenue, rising 2,900% over the past five years to $4.77 billion, suggests a certain… momentum. Indeed, it is now profitable, reporting over $500 million in pretax income in 2025. A minor miracle, given the prevailing economic climate.

Nubank’s Latin American Gambit

Across the continent, in the vibrant, often chaotic landscape of Latin America, a similar story is unfolding. Mobile banking, initially met with skepticism and bureaucratic resistance, is finally gaining traction, led by Nu Holdings, the parent company of Nubank. It took longer, naturally. Bureaucracy, as any seasoned traveler knows, is a particularly tenacious beast in those parts.

Nubank operates in Brazil, Mexico, and Colombia, employing a strategy remarkably similar to SoFi’s. Instead of clinging to the outdated notion of brick-and-mortar branches and exorbitant interest rates, it offers a streamlined, mobile-first experience. Customers can access everything they need through an application and a pair of plastic cards. A revolutionary concept, one might think, yet astonishingly absent from the offerings of many established institutions.

This sensible approach has attracted a considerable following – 106 million active customers as of the third quarter of 2025. It has rapidly become one of the largest banking companies in the world by customer count, providing a solid foundation for future revenue growth. Last quarter, revenue rose 42% year over year to $4.2 billion, while net income increased to $783 million. Impressive figures, even for those accustomed to the inflated pronouncements of Wall Street.

Nubank and SoFi, then, represent a challenge to the status quo. They are not merely banks; they are attempts to reimagine the very nature of finance. Whether they will succeed remains to be seen. The forces of inertia are powerful, and the established players are not likely to surrender their dominance without a fight. But for those willing to take a calculated risk, a modest investment in these two institutions may prove to be a surprisingly rewarding endeavor. Or, at the very least, a diverting spectacle.

2026-02-19 15:03

Nubank’s Latin American Gambit

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