Here Is How Nu Holdings Can Become More Profitable
One of the key ways to assess profitability at the company is by looking at the monthly average revenue per active customer (ARPAC), which the company updates quarterly. In Q3, ARPAC grew from $7.60 to $7.90, well below some of the large banks that have monthly ARPACs ranging from $33 to $54. Nu may never reach an ARPAC in the higher end of this range because the company's business model is predicated on lower-fee banking products.