Nubank, one of Latin America’s most significant fintech unicorns, announced on Tuesday the launch of personal loans for the Mexican market. This strategic move aims to strengthen its financial services portfolio in Mexico, the second-largest economy in Latin America, according to a study by Statista.

This new product will allow customers to obtain personal loans in less than five minutes through the bank’s digital platform, according to a statement from Nu México, Nubank’s Mexican subsidiary. Before becoming available to the public, the company’s employees will test the service.

Gross domestic product in Latin America and the Caribbean in 2022. (Source: Statista)
Gross domestic product in Latin America and the Caribbean in 2022. (Source: Statista)

The announcement comes shortly after the successful launch of Nubank’s savings account service in Mexico in May, which attracted more than one million users in just one month.

According to Iván Canales, director of Nubank in Mexico:

“About 20% of the adult population with smartphones in Mexico has already applied for a Nu product. We plan to continue expanding our presence in the country.”

In the last quarter, Nubank reported record revenue of USD $1.9 billion, attributing it to an increase in the number of new customers. Company executives told Reuters that they see Mexico as the market with the most growth potential for the company and are prepared to launch products faster next year.

Nubank’s rapid growth bolsters the viability of the digital business model in the financial sector. According to CB Insights’ State of Fintech Q2 report, fintech companies in Latin America and the Caribbean raised USD $500 million, representing a 150% increase compared to the previous quarter. Brazil leads the fintech industry’s growth, followed by Mexico, Chile, and Colombia.

State-of-Fintech-Q223-chart-4-2048x1152
State of Fintech Q2 2023. (Source: BC Insights)

Since its shares began trading in New York at the end of 2021, they have risen nearly 80%.

With over 85 million customers in Latin America, Nubank continues expanding in the region, investing in new products and emerging markets, including Mexico and Colombia.

With the launch of this new personal loan product, Nubank reinforces its commitment to offering accessible and efficient financial services, contributing to the fintech revolution in Latin America.