However, Yuri, the growth into any new kind of demographic or segments, it’s not a sprint, it’s a marathon. By which I mean it’s not something that you’re going to be able to show results in one quarter, two quarters. I think it is a matter of a few years in which we will strengthen our value proposition and progressively grow into this new segment.
Yuri Fernandes: Perfect. Thank you. And congrats again on the quarter.
Jorg Friedemann: And our next question comes from the line of Thiago Batista, UBS.
Thiago Batista: Hi Guys. Congratulations for the results, very strong results. My question is about the good surprise of the ROE of 17% that you guys posted this quarter. Even with excess capital and also with losses in Mexico and Colombia, this level is already higher than most of the incumbents in Brazil in line with Itaú retail business and since that Nubank has structured a better efficiency ratio than peers. So my question is, how do you believe Nu will play the superior efficiency in the long term? So the bank should deliver or the fintechs deliver a much higher ROE than peers? Or part of this will be shared with clients and consequently, Nu tend to have a much lower price than peers. So, how you guys are likely to play with the superior efficiency versus peers?
David Vélez: Yes. No, great question. I think it talks to the heart of the digital banking strategy we’ve been pursuing since the very beginning, which similarly to what you’ve seen when you have technology companies, fully digital technology companies competing with traditional companies that are more offline operations. We have the opportunity to use the efficiency of our business model that now you can start really seeing especially around the operating efficiency. When we have our customers, so that we provide a product that has higher quality and lower cost, allowing us to win more share. And so you start creating a bit of a flywheel where you gain share, you gain scale that scale gives you lower cost to serve. You then go back and pass that efficiency, again to the customer via better products and even lower pricing and you have these reinforcing flywheel.
We expect to do that in banking. So, we — part of our initial value proposition was charged zero fees. So even since the beginning, we started already charging no fees on that side and that meant an opportunity to compete on price. But as we grow and we get more data and our models mature and our cost to serve decrease even lower, we can then start doing both, lower fees and lower prices in credit products. So, specifically to your question, we think we’re going to be doing both. We will use the advantage of the business model to both gain share as well as ultimately see a higher return on equity than traditional incumbents, given ultimately, this cost structure advantage is very strategic, and it’s going to be hard for competitors to match that cost structure advantage in a short period of time.
Thiago Batista: No, very clear. If I can do a follow-up, my follow-up would be regarding the artificial intelligence. If you guys are already using these? And where this should improve the bank’s operations? So, it will be more on costs more on the on the asset quality. So how this should improve the operations of the bank?
David Vélez: Yes. So, we’ve been actively — active users of artificial intelligence already for a while. We’ve also been investing a lot in understanding how specifically large language models can have different applications for us. We think there’s really application everywhere from obvious uses around providing better customer service at lower cost or cost efficiency, driven applications around fraud, anti-money laundry and defense, we’re getting very excited about the type of application that we can see that, but then especially also on the consumer-facing front. So reinventing the user experience for consumers. One way that we’ve talked in the past is that when we started the Company, we saw the smartphone as a way to put our bank in every consumer’s back pocket.
