Nu Holdings Deploys NuFormer AI Model Across Credit Operations

Nu Holdings is integrating artificial intelligence deeper into its operations through its proprietary model, NuFormer. The system draws on over a decade of transaction history across more than 100 million customers in Brazil, Mexico, and Colombia. The latest generation of NuFormer quadrupled its context length, training speed, and inference speed while reducing production costs.

The company currently uses NuFormer for credit cards in Brazil and Mexico as well as unsecured lending in Brazil. It is also testing the model for SME credit cards and Colombian cards. Beyond underwriting, generative AI agents now handle over 60% of customer support conversations in Brazil, matching or exceeding human ratings. Nu has also run more than 100 marketing growth campaigns using the platform.

Nu closed the second quarter of 2026 with a $39.4 billion credit portfolio, reflecting a 37% year-over-year increase. Risk-adjusted net interest margin expanded to 12.4% from 9.5% in the first quarter, supported by stronger credit income and lower credit costs. Second-quarter gross revenues rose 39% year over year to $5.9 billion, while net income reached $1.1 billion across 139 million total customers. Average revenue per active customer (ARPAC) reached $17, and the efficiency ratio stood at 19.5%.

Regional competition in artificial intelligence is also accelerating. Brazilian rival Itau Unibanco partnered with Google in June 2026 to expand Gemini access and brought its ia.i assistant to approximately 300,000 Superapp users by late July. MercadoLibre completed an AI search architecture rollout across its five largest sites and expanded Mercado Pago to 88 million monthly active users during the second quarter of 2026.

Shares of Nu Holdings have gained 29.4% over the past three months. The stock trades at a forward price-to-earnings ratio of 14.38X, compared with the industry average of 11.55X. The Zacks Consensus Estimate for full-year 2026 earnings per share is currently pegged at 86 cents, reflecting a 3-cent upward revision over the past month.