Nubank CEO David Vélez Honored as Entrepreneur of the Year, Champions Private Sector in Colombia
David Vélez, CEO of Nu Holdings, has been recognized as Entrepreneur of the Year for 2025, a prestigious award presented by the Bogotá mayor Carlos Fernando Galán. The recognition comes as Vélez increasingly emphasizes the potential of Colombia and the critical role of the private sector in unlocking its economic future. His vision, born from identifying inefficiencies in traditional banking, has propelled Nubank to grow a major force in Latin American finance and, recently, the United States.
Vélez’s journey with Nu began in 2013, fueled by a simple yet powerful idea: to simplify financial processes and eliminate the bureaucratic hurdles often associated with opening a bank account. This core principle – offering accessible digital financial services without the constraints of traditional banking – resonated deeply with a population underserved by existing institutions. The company’s success, now boasting over 131 million customers across Latin America, demonstrates the demand for a more streamlined and inclusive financial system. This expansion now includes a recently secured license to operate in the United States, marking a significant milestone for the fintech giant.
The award acknowledges not only Nubank’s impressive growth but similarly its pioneering role in the digital revolution of financial services. Vélez’s acceptance speech underscored his belief in Colombia’s untapped potential, stating the country possesses “extraordinary potential that is waiting to be liberated.” He passionately advocated for a business environment where the private sector can operate freely, compete with integrity, and create value for society, rather than relying on government intervention or subsidies. This sentiment reflects a broader philosophy that innovation and economic progress are best driven by entrepreneurial spirit and market forces.
From Frustration to Fintech Giant: The Genesis of Nu
Vélez’s vision for Nu wasn’t born in an ivory tower, but from firsthand experience with the frustrations of the existing financial system. Recognizing the cumbersome processes involved in opening a basic bank account, he, along with Cristina Junqueira and Edward Wible, founded the platform in São Paulo. The initial goal was clear: to democratize access to financial services. As Vélez explained, the traditional Brazilian banking sector, at the time, was characterized by high concentration and profitability, not necessarily due to superior service, but a lack of competition.
The impact of Nubank’s entry into the Brazilian market was transformative. Between 2018 and 2026, the Brazilian financial system experienced nearly double-digit growth. Nubank played a pivotal role in this expansion, bringing approximately 32 million people into the formal banking system for the first time, and providing a first-time credit card to another 28 million. This rapid growth demonstrates the significant unmet demand for accessible and user-friendly financial services.
Expanding Footprint and Impact in Colombia
Nubank’s success isn’t limited to Brazil. The company has rapidly gained traction in Colombia, becoming the fifth-largest financial institution in the country in terms of total deposits within just a year and a half, reaching over $9.2 trillion Colombian pesos. This growth is attributed to its competitive savings accounts offering daily returns, zero hidden fees, and immediate liquidity. The company has also launched instant payments and digital Certificates of Deposit (CDTs), signaling a commitment to expanding its product offerings and deepening its presence in the Colombian market.
Vélez emphasized Nubank’s long-term commitment to Colombia, stating the company is “just getting started.” He highlighted the importance of fostering a vibrant private sector as the engine of economic growth, arguing that innovation, job creation, and problem-solving ultimately stem from the initiative and entrepreneurship of individuals and businesses, not solely from government intervention. This perspective aligns with his broader belief that reducing regulatory burdens and promoting free competition are essential for unlocking Colombia’s economic potential.
The Role of Capitalism and Addressing Financial Exclusion
Vélez didn’t shy away from addressing criticisms of capitalism during his remarks, arguing that failures often attributed to the system are, in reality, the result of its absence or excessive regulation. He pointed to the issue of “capture” – where private interests unduly influence state policy – and protectionism as factors that stifle competition and harm consumers. He maintained that a truly free market, although not perfect, is far more effective at driving innovation and delivering value than heavily regulated or controlled systems.
He illustrated this point with a stark example: the prevalence of informal lending, known as “gota a gota,” in Colombia. According to Vélez, approximately 65% of Colombians lack access to formal credit, forcing over 11 million people to resort to illegal lenders who charge exorbitant interest rates – averaging 380% annually for individuals and 666% for businesses. These rates are over 23 times the legal usury limit, leaving borrowers vulnerable to exploitation and even violence. He argued that regulations intended to protect vulnerable consumers have inadvertently pushed them into the hands of predatory lenders, creating a “tragedy of public policy.”
Entrepreneur of the Year: A Recognition of Digital Disruption
The recognition of David Vélez as Entrepreneur of the Year 2025 by the Colombian newspaper La República, delivered by Bogotá Mayor Carlos Fernando Galán, underscores the transformative impact of Nubank on the Latin American financial landscape. The award specifically highlighted the importance of digital transformation and the role of new technology companies in expanding access to financial services. The selection committee acknowledged Nubank’s success in challenging the status quo and providing a viable alternative to traditional banking models.
Vélez’s story is a testament to the power of identifying a demand and building a solution. From its humble beginnings in 2013, Nubank has grown into a regional powerhouse, disrupting the financial industry and empowering millions of individuals with access to affordable and convenient financial services. His vision extends beyond simply providing banking services. it’s about fostering a more inclusive and equitable financial system that benefits all members of society.
Looking Ahead: Nubank’s Continued Expansion
As Nubank continues to expand its operations, particularly in the United States following its recent licensing approval, the company is poised to further disrupt the global financial landscape. Vélez’s emphasis on innovation, customer-centricity, and a commitment to financial inclusion will likely remain central to Nubank’s strategy. The company’s success in Colombia, where it has rapidly gained market share, demonstrates its ability to adapt to diverse regulatory environments and cater to the specific needs of local consumers.
The next key development to watch will be Nubank’s rollout of its full suite of credit products in Colombia, building on its existing offerings of savings accounts, instant payments, and digital CDTs. This expansion will further solidify its position as a major player in the Colombian financial market and provide more opportunities for individuals and businesses to access the credit they need to thrive.
Key Takeaways:
- David Vélez, CEO of Nu Holdings, was named Entrepreneur of the Year 2025 in Colombia.
- Nubank’s success is rooted in simplifying financial processes and increasing access to digital banking services.
- Vélez advocates for a strong private sector and reduced regulatory burdens to unlock Colombia’s economic potential.
- The company is expanding rapidly in Colombia, becoming the fifth-largest financial institution in the country.
- Nubank’s expansion into the United States marks a significant milestone for the fintech company.
The future of finance is undoubtedly being shaped by companies like Nubank, and David Vélez’s leadership will continue to be a driving force in this transformation. We encourage readers to share their thoughts on Nubank’s impact and the future of financial inclusion in the comments below.