Nubank applies for a banking licence in Mexico

Friday 20 October 2023 10:23 CET | News

Nu Mexico, a Nubank subsidiary, has announced that it has applied for a banking licence with the National Banking and Securities Commission (CNBV), the local regulator. 

As per the press release, this move aims to provide a broader and more robust regulatory figure. In this way, Nu will be able to provide its customers with a wider range of products and benefits, including investments, payroll portability, and higher deposit limits. Nu Mexico intends to continue to innovate, grow, and invest in the country, contributing to the advancement of the financial sector, and increasing financial inclusion. 

Nu Mexico, a Nubank subsidiary, has announced that it has applied for a banking licence with the National Banking and Securities Commission (CNBV), the local regulator.

Furthermore, the press release goes on to highlight that Nubank follows the local regulations of each of the countries in which it operates. While it has a global strategy for the company, it is very conscious of tailoring it to each market’s characteristics, regulatory framework, and customer needs. While Nubank is now able to create and launch products at a much faster pace, it also needs to ensure an adequate regulatory framework to unlock growth in Mexico. Thus, the company stated that the banking licence is the right fit for its long-term roadmap. 

Banking licence in Mexico 

The banking licence is a crucial milestone in Nu’s roadmap in Mexico, as it will allow the company to better cater to the needs of a broader public, as well as to offer its customers a wider range of products and gradually become their primary financial relationship. In Brazil, where the company has over 80 million customers, it is already the primary banking relationship for almost 60% of those customers. In general terms, the licence is set to enable institutions to offer various types of investments, including stocks in the Mexican exchange, payroll portability, high-value car and mortgage loans, products focused on SMEs, and access to a higher level of deposit insurance through the capabilities of the IPAB insurance. 

About Nubank 

Nubank is a digital financial services platform that serves more than 80 million customers across Brazil, Mexico, and Colombia. The company leverages proprietary technologies and innovative business practices to put forward new financial solutions and experiences for individuals and SMEs. The solutions developed by Nubank are designed with convenience and low cost in mind. 

After over four years since its arrival in Mexico and three years of commercial operation in the market, its total investment in the Mexican market exceeds USD 1.3 billion. Nu Mexico is one of the country’s capitalised financial institutions, with a Capitalisation Level (NICAP) of around 500%. Under traditional banking regulations, Nu’s current capitalisation ratio (ICAP) would reach close to 40%, four times the regulatory requirement (10.5%), and twice the sector’s average (19%). 

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Keywords: banking, digital banking, banking license, SMEs, regulation
Categories: Banking & Fintech
Companies: Nubank
Countries: Mexico
This article is part of category

Banking & Fintech


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