Nubank’s latest lending moves are calculated strikes aimed at reshaping Brazil’s credit ecosystem. Each initiative is a piece of a broader strategy to scale lending sustainably while increasing customer lock-in and market penetration.

• By enabling borrowers to transfer their payroll loans (consignado) from traditional banks, Nubank is striking at one of the most profitable yet rigid lending segments. The 1.40% per month rate undercuts incumbents, forcing them into either reducing margins or losing customers. The fully digital transfer process further erodes the legacy banks’ distribution advantage, as Nubank removes the friction of branch-based interactions. This move expands Nubank’s secured loan book while reinforcing its reputation as a cost-efficient alternative to traditional banks.
• By leveraging SMB deposits and investments as collateral, Nubank is decoupling creditworthiness from traditional scoring and reducing the risk-adjusted cost of lending. This signals Nubank’s calculated entry into business banking, unlocking a high-potential yet underserved segment. 
• Nubank’s partnership with federal and state entities (e.g., Brazilian Air Force, Navy, Army, and municipalities) is a textbook example of acquiring high-trust, high-volume borrowers at scale. This move strengthens its competitive moat in a heavily regulated, high-barrier-to-entry segment.

Through these developments, Nubank is executing a meticulously designed playbook that expands its secured loan book, de-risks SMB lending, and fortifies its market position through high-trust partnerships.