The Brazilian digital credit entity Nubank has received approval from the Mexican government to acquire a license that will allow it to operate as a multiple banking institution in Mexico. This approval is the first step for the fast-growing company to expand its product offering. The board of the National Banking and Securities Commission (CNBV) greenlit Nubank's application to become a commercial bank. This approval was submitted in a document to the United States Securities and Exchange Commission.
"The license will allow us to offer better products to our clients and make our business model much stronger," said David Vélez, president and co-founder of Nubank, during a broadcast. Romina Benvenuti, public relations director of Nu Mexico, pointed out that authorities will conduct an audit of Nubank's systems before a second process to approve broader operations. There is still no estimate of how long this process will take.
Nubank has been operating in Mexico under a non-banking credit license that allows it to offer credit cards and accept deposits. Once full authorization is granted, the credit entity will focus on payroll loans, according to Iván Canales, director of Nubank Mexico. Canales also mentioned that only 36% of Mexican adults have access to this type of loans, with the market concentrated in five banks, which represents an opportunity to generate competition in the sector.
The fintech company has already invested over 1.3 billion dollars in Mexico and plans to continue its investments. Nubank is the largest company in its field operating in Mexico, competing with other companies like MercadoLibre and Plata. The expansion in Mexico reflects Nubank's efforts to replicate its success in Brazil, where it had more than half of the adult population as customers last year.
Nubank, founded in 2013 and led by David Vélez, has ventured into secured loans, insurance, and services for small businesses in Brazil, building a retail market in its application. The company nearly doubled its clients in Mexico surpassing 10 million in 2024, while total assets grew by 170% to 103 billion pesos, according to regulatory data. In the coming months, Nubank will continue to register more deposits than loans and aims to accelerate loan granting in the country. Recently, the company expanded its offering of cash withdrawals and cash availability as part of its new operations approved in Mexico.
