Nu México has emerged as one of the most prominent financial institutions in the country, experiencing consistent growth over the past four years since its arrival.
Now, it has taken the initiative to officially request authorization from the National Banking and Securities Commission (CNBV) to become a bank.
Nu México’s strategy aims to expand its offering of products and benefits, both for its customers and investments.
This includes the possibility of offering payroll portability and higher deposit limits.
Nu México, a subsidiary of Nubank originating from Brazil with over 80 million customers, currently operates as a Popular Financial Society (Sofipo) locally, characterized by its focus on transparent, simple, and customer-oriented digital finance.
The institution has formally announced its application to obtain a banking license in Mexico. It is committed to closely collaborating with the regulator throughout the process, ensuring that this will not have a negative impact on its customers.
“This is a strategic step in the company’s roadmap, as under the figure of a multiple banking institution, it will be able to serve a broader audience, thus continuing to revolutionize financial services in the country by offering its customers a wider range of products and becoming their primary financial relationship,” the institution stated.
Iván Canales, the CEO of Nu México, highlighted the achievements made possible by the Sofipo structure. He mentioned they expanded their product portfolio by launching savings accounts, debit cards, and personal loans in 2023.
Canales emphasized Nu’s long-term commitment to Mexico, as their customers demand a broader range of services, including higher deposit limits, investment options, and the ability to switch their payroll.
This strategic step came naturally after Nu became the largest Sofipo in Mexico, one of the leading issuers of credit cards in the country, and after the successful launch of savings accounts and debit cards, which attracted one million customers in just one month.
“Therefore, by transforming our license from a popular financial society to a multiple banking institution, we can ensure an even broader and robust regulatory framework that allows us to continue liberating more Mexicans from complexity,” Canales expressed.
According to Nu, their total investment in the Mexican market exceeds USD$1.3 billion, establishing them as one of the largest foreign investors in the country.
Furthermore, Nu México has strong capitalization, with a Capitalization Level (NICAP) approximately four times higher than required for Sofipos.
In comparison to traditional banking regulations, Nu’s current Capitalization Index (ICAP) significantly exceeds the regulatory banking requirement of (10.5%), reaching approximately 40% and doubling the industry average (19%).
For Nubank, Mexico represents a strategic priority, as its growth in the country is essential for its global expansion.
The company is committed to promoting financial inclusion in Mexico, serving as the first credit experience for approximately half of its credit card customers.
Nu México plans to expand its service offerings as a Sofipo in the coming months while progressing through the regulatory process to obtain its banking license.
It is worth noting that Mexico would be the first country in which it would operate as a bank, although Nubank ensures compliance with local regulations in each country where it operates.
In Brazil, it operates under the authorization of the Central Bank as a Payment Institution and a Financial Institution.
In Colombia, where it only offers credit cards, it operates as a corporation. It is obtaining authorization to function as a Financial Company before the Financial Superintendency of Colombia (SFC).
