Despite having “bank” in its name, which means bank in English, Nubank is not actually a bank. Apparently, this happens to avoid bureaucracy and fees. Also for a similar reason, it does not offer a salary account for payroll. Recently, two fintech employees stated that, with a formal contract, they are paid by Itaú. To learn more about why Nubank uses Itaú to pay its employees, read the following article.
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What do you need to know about Nubank paying its contractors for another bank?
Two employees of fintech Nubank stated that, with a formal contract, they are paid by Itaú. After changes in Central Bank determinations in July 2018, workers can choose to request salary portability to a NuConta.
There is no enlightened explanation as to why fintech does this. However, it stated that it does not currently offer a salary account, which is carried out through the outsourced service contracted by Itaú.
However, even if this occurs, it appears to be in the face of the strategic nature defined by Nubank itself. This is because this is not effectively a bank, governed by Central Bank regulations.
In fact, Nubank serves as a payment institution and financial institution. Given this, NuConta is not a salary, checking or savings account, but a payment account.
This follows the ideals designed by fintech: its strategy is to be something bureaucratically light. In view of this, Nubank emerges within a new regulatory arrangement where the figure of the payment institution, mentioned above, was created. Even though Nubank also offers a credit card in parallel, it never effectively became a bank.
Following this type of institution, Nubank ends up being free of numerous bureaucracies and fees that traditional banks usually charge. For fintech purposes, this is far from a bad thing.