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David Velez: How AI Changes The Future of Finance | E1059

David Velez is the Founder and CEO of Nubank, one of the largest and fastest-growing financial institutions in the world. 1 in 2 people in Brazil alone have a Nubank account. Nubank's purple credit card in Mexico is the highest-rated NPS product of any consumer product in the world. Before founding Nubank in 2013, David was a partner at Sequoia Capital between 2011 and 2013, in charge of the firm’s Latin American investments group. Before Sequoia, David worked in investment banking and growth equity at Goldman Sachs, Morgan Stanley and General Atlantic. ----------------------------------------- Timestamps: (0:00) Intro (0:29) Sequoia and Its Influence (12:03) Venture Business in Latin America (19:29) Nubank's Success and Challenges (39:51) The Future of AI in Financial Services (51:25) Personal Insights and Quick-Fire Round ----------------------------------------- In Today's Episode with David Velez We Discuss: 1. From Sequoia Partner to Creating One of the Largest Financial Institutions: What was the Sequoia interview process like? What questions did Doug Leone really dive into when hiring David? What impressed David most about how Sequoia interview and win talent? What are 1-2 of David's biggest lessons from working with Doug Leone? 2. From a Small House to a $BN Public Company: What does David believe are the 1-2 core but non-obvious reasons why Nubank scaled so fast? What does David believe are the most non-obvious but massive opportunities Nubank has to 10x from here? Why does David believe emerging market fintech providers will be more valuable than Western fintechs? What does David believe Western fintechs and regulators can learn from BRIC economy fintechs? 3. How AI Changes The Future of Financial Services: How does David believe AI will change financial services? What products are the lowest-hanging fruit? Which products will be harder for AI to serve? How will AI handle the ambiguity of which master to serve; the consumer and their experience or the bank and their fees and profit motive? Will banks need to own and operate their own models? If using other models, what will differentiate them when they are layers on top of someone else's technology? 4. David Velez: The Leader and Father: What does it mean to be a great listener? How does David approach it? What has been David's biggest lessons from Sequoia on culture? What works? What does not? What are David's biggest pieces of advice to raise kids that are not spoiled and are hard-working and humble? How does David think about "efficient giving" with the philanthropy he does today? What is the big paradox and challenge in philanthropy today? ------------------------------------------------------ Subscribe on Spotify: https://open.spotify.com/show/3j2KMcZ... Subscribe on Apple Podcasts: https://podcasts.apple.com/us/podcast... Follow Harry Stebbings on Twitter: https://twitter.com/HarryStebbings Follow David Velez on Twitter: https://twitter.com/Velez_David Follow 20VC on Instagram: https://www.instagram.com/20vc_reels Follow 20VC on TikTok: https://www.tiktok.com/@20vc_tok Visit our Website: https://www.20vc.com Subscribe to our Newsletter: https://www.thetwentyminutevc.com/con... ---------------------------------------- #DavidVelez #nubank #HarryStebbings #20vc #sales

David VélezguestHarry Stebbingshost
Sep 10, 20231h 8mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Nubank’s David Vélez on AI, Fintech Disruption, and Relentless Culture

  1. David Vélez, founder and CEO of Nubank, discusses how Sequoia’s people-centric culture shaped his approach to hiring, partnership, and building a flat, ownership-driven organization.
  2. He explains why Latin America is now ripe for scaled venture outcomes, how Nubank has become Brazil’s leading primary bank, and why he still sees the company as in the ‘first minute of the game.’
  3. Vélez outlines Nubank’s strategy: go very deep in a few markets as a licensed bank, then evolve from financial services into a broader consumer platform and marketplace.
  4. He argues that AI will enable a “bank and banker in every pocket,” potentially disrupting even private banking, while stressing the importance of aligning AI incentives with long-term customer trust.

IDEAS WORTH REMEMBERING

5 ideas

Prioritize character over credentials when hiring for long-term impact.

Vélez adopted Doug Leone’s approach of probing family, personality, and motivations rather than CVs, and prefers people with spiky strengths and clear weaknesses over those who are merely ‘good at everything.’

Treat people like partners early to trigger ownership and preparation.

Being treated as a partner and asked for real investment opinions as an intern at Sequoia inspired Vélez to build Nubank’s culture around everyone having a ‘seat at the table’ and skin in the game.

Choose depth over breadth: be a primary bank, not a side wallet.

Nubank committed to being customers’ primary account, which required securing a banking license and going very deep in fewer markets (Brazil, Mexico, Colombia) instead of thinly expanding across many countries.

Disruption follows unmet core needs, not imported Silicon Valley problems.

Early Latin American founders copied US convenience apps; Nubank focused instead on massive, painful gaps in financial access and cost, unlocking far larger, more durable opportunities.

AI must be incentive-aligned to customer outcomes, not product push.

Vélez argues that AI systems in finance should be programmed to maximize long-term customer satisfaction (e.g., NPS over 10 years), even if that means advising customers to use competitors’ products.

WORDS WORTH SAVING

5 quotes

We’re still very much playing the first minute of the first half of the game.

— David Vélez

We want to be your primary bank. We don’t want to be just a little side wallet.

— David Vélez

If the smartphone was the bank in every pocket, AI is the bank and the banker in every pocket.

— David Vélez

If for one second we rest on our laurels, that is the first day of the last day.

— David Vélez

The highest-rated NPS consumer product in the world today is our purple credit card in Mexico.

— David Vélez

Sequoia Capital’s interview process and lessons on reading peopleFounding Nubank and Sequoia’s decision not to open in Latin AmericaWhy and how Nubank won primary banking relationships at scaleStrategic trade-offs: deep market focus, licensing, and product vs. geo expansionLatin American fintech evolution, liquidity, and regulatory environmentsAI’s role in financial inclusion and the future of private bankingCulture, leadership, philanthropy, and raising children with ambition amid wealth

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