Fintechs in Brazil added 9.3 million clients in the third quarter of 2026, more than three times the 2.9 million clients added by the country's top five incumbent banks, according to data from Brazil's Central Bank analyzed by Jefferies.
Fintechs added 5.6 million borrowers in the quarter, while the five largest incumbent banks added just 600,000. Nubank (NYSE: NU) and Mercado Pago drove approximately 70% of the borrower growth among fintechs.
Total clients across the 12 largest financial institutions in Brazil grew by 12.2 million quarter-over-quarter to September 2026. Total borrowers rose by 6.2 million in the same period.
Over three years, Nubank and Mercado Pago combined added 66 million clients and 44 million borrowers. The five largest incumbent banks added 31 million clients but only 4.1 million borrowers over the same span.
The five banks saw an 8.8 million increase in account-holder borrowers offset partly by a 4.7 million decline in non-account-holder borrowers. Non-account-holder borrowers include customers with co-branded credit cards, public-sector payroll loans, and auto loans through third-party channels. Itaú Unibanco holds 14.3 million credit clients who are not account holders, while C6 Bank has 4.7 million non-account holder borrowers.
Investors watching Nubank (NU) should monitor fintech penetration trends in Brazil and how incumbent banks adapt their borrower acquisition strategies.