Nubank entered Mexico with the rollout of a no-fee credit card in 2020 and has since added a debit account, savings accounts, and personal loans, helping it win more than 10 million customers and $4.5 billion in deposits by the end of 2024.
Nu Mexico, a subsidiary of Nubank, announced the approval of its banking license by the National Banking and Securities Commission (CNBV). With this milestone, „Nu has become the first Popular Financial Society (SOFIPO) to obtain approval to transform into a bank, opening the path to increased competition in the Mexican financial sector” – according to the press release.
This milestone brings the company closer to expanding its product portfolio, including the introduction of a payroll account, a key opportunity to increase financial inclusion in Mexico where only 36% of adults have this financial instrument (National Financial Inclusion Survey, 2024), with almost 90% concentrated in just five banks.
“Mexico is a key pillar of our global strategy. We’ve already made significant progress in terms of growth, reaching over 10 million customers in the country. We have invested over $1.4 billion in the market, not only to scale our presence, but also towards driving innovation and elevating the standards in the local financial sector. Our mission to challenge the status quo for the benefit of our customers has led us to pioneer the transition from SOFIPO to bank, a landmark achievement that we trust will stimulate further innovation and competition in Mexico,” stated David Velez, CEO and founder of Nubank.
„In order to complete its transformation into a bank, Nu Mexico will undergo a rigorous regulatory audit ahead of obtaining authorization to begin operations. During this period, Nu Mexico’s customers will continue to enjoy the same seamless user experience.” – the company explained.
“The approval of Nu Mexico’s banking license is a recognition of our solid business model and an acknowledgment of our commitment to financial inclusion. Currently, Nu has already gained the trust of nearly a quarter of Mexico’s banked population. With this milestone we will continue working to strengthen our differentiated offering, which has already made a significant impact in Mexico by promoting savings and improving access to credit,” stated Iván Canales, General Manager of Nu Mexico.
The company will expand its positive impact in the country by offering increased deposit limits and a payroll account, as well as multiplying deposit insurance coverage by 16 times through the Institute for the Protection of Bank Savings (IPAB), once it begins banking operations.
Nu Mexico’s Journey
Nubank began its international expansion strategy with its entry into the Mexican market in 2019. With the highest GDP per capita in Latin America, a highly concentrated banking sector, low financial inclusion, and high technology adoption rates, the country provided a distinctive opportunity within the region. By the fourth quarter of 2024, Nu had cemented its position as the leading SOFIPO, surpassing 10 million customers and accumulating USD $4.5 billion in deposits.
Nu Mexico launched its first product in 2020: a no-fee credit card with customizable financing plans tailored to local needs. Since then, the company has expanded its portfolio to include a debit account, Cuenta Nu, that reached one million customers in its first month and has continued to evolve to include new features, including Cajitas Turbo with an annual 15% yield rate. Nu Mexico’s portfolio also includes personal loans and secured cards, designed to help customers gain access to credit and build a credit history.
Nu’s 100% digital business model has allowed it to reach 98% of Mexico’s municipalities, including rural areas designated as priorities by the Federal Government. The company has also been able to provide nearly half of its customers with their first credit card, delivering on its commitment to increase the penetration of financial services and promote the inclusion of more Mexicans into the system. The transformation into a bank is key to accelerating this mission.
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Nu is one of the world’s largest digital financial services platforms, serving 110 million customers across Brazil, Mexico, and Colombia.
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