Nubank Celebrates Milestone of 10 Million Users in Mexico

Nubank (Nu) announced on Tuesday that it has reached 10 million users in Mexico, just five years after launching its financial platform in the country.

As of the third quarter of last year, the company had approximately 8.9 million customers in Mexico and over $3.8 billion in deposits, according to an official statement. Nubank revealed that it has made investments exceeding $1.4 billion in Mexican territory. "In a country where 42% of the population lacks access to financial services, Nu has made it possible for nearly 50% of its users to access credit and for 63% to start earning returns on their savings," the company stated, citing results from its own study. Moody's Ratings noted on Monday that the collaboration between Nu Bank and Oxxo gives the Brazilian giant the ability to enhance its competitiveness against traditional Mexican banks, which still face challenges in serving low-income customers. “This partnership is unfavorable for the credit rating of large banks and consumer credit banks in Mexico, as it will intensify competition for deposits in the context of the high interest rates offered by fintechs,” the agency stated in its report. With information from Reuters.

Commentary: The growth of Nubank and its ability to attract millions of users highlights the transformation happening in financial services in Mexico. The intense competition sparked by fintechs is pushing traditional banks to reconsider their approach, especially in a market where a large part of the population remains unbanked. For consumers, this means more options and better conditions, while for banks, it represents a challenge that could reshape the country's financial landscape.