Filed under rate-cycles.

Sunday Essay — The Rate Cut, the Model, and Nubank's First Billion

Nubank cleared ten-figure net income for the first time in Q2 2026, with NuFormer — its financial-behaviour foundation model — now inside the underwriting decision, not merely supporting it. The retraining-cadence advantage over static scorecards is genuine. Whether the margin story holds depends on whether the Copom keeps cutting and whether delinquency migration stays within what the model expects — questions a 244 per cent coverage ratio answers for one bank, not for the market.