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Nubank to launch personal loans in Mexico

Wednesday 6 September 2023 09:43 CET | News

Brazil-based financial services platform Nubank has announced the launch of personal loans in Mexico, aiming to strengthen its footprint in the region.

 

As with all Nu products, the launch is set to follow a phased rollout process, beginning in the days to come with a group of employees who are to start testing the process, following which the offering will be expanded to the general market.

Nu’s personal loans and what the launch entails for Mexico

After the rollout, Mexicans will be enabled with access to simple, transparent, and flexible loans through the Nu app. The application process will be digital in its entirety and can be completed in less than a 5-minute timeframe. Customers will be provided with a maximum offer, and they can adjust the amount and payment schedule to meet their needs, with a complete simulation. What is more, users will be able to make early payments at any time, free of additional fees or penalties of any kind.

Nubank to launch personal loans in Mexico

A 2022 Kantar-conducted survey for International Personal Finance (IPF) found that 6 out of every 10 Mexicans had applied for a loan, but according to the 2021 National Financial Inclusion Survey (ENIF), only 33% were able to obtain one from a formal financial institution. Within this context, the company aims to promote access to financial products and credit, while concomitantly promoting financial education among its customers. As approximately 20% of the smartphone-connected adult population in the country has applied to build a relationship with Nu, the company believes it is having a positive impact by enabling increased access among Mexicans.

Based on the press release information, with personal loans, Nu Mexico is looking to strengthen its presence in the country and its multi-product platform. The announcement follows the successful launch of the savings product Cuenta Nu, which reached more than a million customers within less than a month of its May 2023 public launch. One of Mexico’s largest SOFIPO (Popular Financial Institutions, in Spanish), Nu has expanded its offering from only credit cards to savings accounts, debit cards, and now personal loans.

When commenting on the launch, Iván Canales, General Manager of Nu Mexico said that the company looks to create a complete services platform that can accompany different stages of people’s financial lives, and the expansion of its portfolio to personal loans aims to provide Mexicans with additional options to achieve their goals. Per their statement, Nu created a product that offers security and autonomy in a simple, transparent, and fair way, giving customers full control over their loan, with no hidden fees or conditions. The spokesperson added that they seek to increase their offering in the country by empowering people to take control of their money.

Nu’s consolidation in the Mexican market

In December 2022, Nu made public a capitalisation of USD 330 million, bringing its investment in Mexico for the year to USD 1.3 billion. With this investment, Nubank, the parent company of Nu Mexico, became one of the largest foreign investors in Mexico, and Nu Mexico, one of the best-capitalised financial institutions in the region.

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Keywords: product launch, credit access, financial services, financial inclusion, banking, fintech, payments , digitalisation
Categories: Banking & Fintech
Companies: Nubank
Countries: Mexico
This article is part of category

Banking & Fintech

Nubank

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