Nubank

In two thousand and thirteen, Brazil's five largest banks charged mandatory annual fees. A customer opening a checking account paid one hundred fifty dollars yearly regardless of activity. Everyone accepted it. Banks explained they needed money for operations. The system worked because nowhere else existed. Customers tolerated the fee as the cost of banking. Nubank eliminated all account fees. Zero dollars yearly. No hidden charges. Instead, they recruited customers through referrals. A customer inviting a friend earned rewards. The referred friend told another. Customer acquisition cost was five dollars versus sixty dollars that traditional banks spent on marketing. Viral growth replaced expensive advertising campaigns.