Nu Mexico, the Mexican subsidiary of Brazilian fintech giant Nubank, has received a banking license approval from the National Banking and Securities Commission (CNBV).
The development will allow Nu Mexico to transition from a Popular Financial Society (SOFIPO) to a fully-fledged bank.
With the banking licence, Nu Mexico plans to broaden its product offerings, including the launch of a payroll account.
Before it can commence banking operations, Nu Mexico must undergo a stringent regulatory audit.
Throughout this process, the company assured customers that they would continue to receive the same seamless user experience they are accustomed to.
Nu Mexico general manager Iván Canales said: “The approval of Nu Mexico’s banking licence 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.
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By GlobalData“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.”
Once operational as a bank, Nu Mexico will offer higher deposit limits, a payroll account, and increase deposit insurance coverage by 16 times through the Institute for the Protection of Bank Savings (IPAB), it said.
Since its foray into Mexico in 2019, Nubank has strategically expanded internationally.
By the fourth quarter of 2024, Nu Mexico established itself as the top SOFIPO, with over 10 million customers and $4.5bn in deposits, the bank said.
Nu Mexico’s initial product, a no-fee credit card with customisable financing plans, was launched in 2020.
The company has since introduced a debit account, Cuenta Nu, which gained one million customers in its first month and now features Cajitas Turbo with an annual 15% yield rate.
Its portfolio also includes personal loans and secured cards to facilitate credit access and history building.
Leveraging a 100% digital business model, Nu has reached 98% of Mexico’s municipalities, including priority rural areas designated by the Federal Government.
In December 2022, Nubank announced plans to invest $330m in Mexican operations via equity capitalisation to drive growth.
