Nu Takes a Step Forward and Becomes a Bank

Nu Mexico has officially announced that it has received its license to operate as a bank. "We are the first Popular Financial Society (Sofipo) to obtain authorization to transform into a bank, promoting greater competition in Mexico's financial system," the company stated in a press release.

Iván Canales, CEO of Nu in Mexico, mentioned at a conference that our country is key for the Brazilian firm, and they plan to keep investing, although he did not specify how much funding would be allocated. "We are already in the process of formally requesting an audit from the CNBV to start operations, but we don't have a specific date yet," said Romina Benvenuti, the company's legal director. After this audit, the CNBV will grant the necessary permits to begin operations. Canales emphasized that in Brazil, Nu achieved financial balance in eight years, though he did not clarify how long it would take to reach the same goal in Mexico. "Our global costs are significantly lower, allowing us to have a profitable business model," he asserted.

What changes will there be for bank users? "The transition to a banking license does not alter our value proposition; our account product has been a significant change for the savings of millions of Mexicans," Canales highlighted. While current Nu customers will not experience changes to their accounts, operating as a bank will enable them to expand credit lines, offer payroll products, have greater backing from IPAB, and provide alternatives for SMEs.

In summary, Nu’s transformation into a bank represents an excellent opportunity to foster competition in the Mexican financial sector, which could lead to better services and products for users. It’s crucial for consumers to stay alert to these changes, as they may benefit from more favorable conditions regarding rates and financial services, positively impacting their ability to save and invest.