Nubank’s AI Credit System Broadens Lending Reach Without Negatively Impacting Portfolio Stability
Summary
Nubank announced that its AI underwriting framework is enabling broader credit access without increasing delinquency, according to senior executives. The bank highlighted nuFormer, a transformer-based model that cut projected risk by about 70% for comparable segments and delivered larger-than-usual performance gains. Nubank grew its credit portfolio ~40% year-over-year while keeping write-off rates steady at 2.8–2.9% and reporting roughly US$11 billion in untapped lines among approved customers. Revenue per active customer remains low (~$15 versus ~$40 at traditional banks), indicating material headroom to deepen customer relationships. The bank also integrates these capabilities into government and in-house debt-relief programs via the app, with built-in safeguards and budgeting support to limit future over-indebtedness.