Latest news with #SOFIPO
Yahoo
25-04-2025
- Business
- Yahoo
Nubank's Mexican subsidiary secures banking licence
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. '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. "Nubank's Mexican subsidiary secures banking licence" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Business Wire
24-04-2025
- Business
- Business Wire
Nu Mexico Receives Banking License Approval, Paving the Way for Product Portfolio Expansion and Increased Financial Inclusion
MEXICO CITY--(BUSINESS WIRE)--Nu Mexico, a subsidiary of Nubank, announced today the approval of its banking license by the National Banking and Securities Commission (CNBV). With this milestone, Nu has become the first Popular Financial Society (SOFIPO) to obtain approval to transform into a bank, opening the path to increased competition in the Mexican financial sector. This milestone brings the company closer to expanding its product portfolio, including the introduction of a payroll account, a key opportunity to increase financial inclusion in Mexico where only 36% of adults have this financial instrument (National Financial Inclusion Survey, 2024), with 90% concentrated in just four banks. 'Mexico is a key pillar of our global strategy. We've already made significant progress in terms of growth, reaching over 10 million customers in the country. We have invested over $1.4 billion in the market, not only to scale our presence, but also towards driving innovation and elevating the standards in the local financial sector. Our mission to challenge the status quo for the benefit of our customers has led us to pioneer the transition from SOFIPO to bank, a landmark achievement that we trust will stimulate further innovation and competition in Mexico," stated David Velez, CEO and founder of Nubank. In order to complete its transformation into a bank, Nu Mexico will undergo a rigorous regulatory audit ahead of obtaining authorization to begin operations. During this period, Nu Mexico's customers will continue to enjoy the same seamless user experience. "The approval of Nu Mexico's banking license 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. 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,' stated Iván Canales, General Manager of Nu Mexico. The company will expand its positive impact in the country by offering increased deposit limits and a payroll account, as well as multiplying deposit insurance coverage by 16 times through the Institute for the Protection of Bank Savings (IPAB), once it begins banking operations. Nu Mexico's Journey Nubank began its international expansion strategy with its entry into the Mexican market in 2019. With the highest GDP per capita in Latin America, a highly concentrated banking sector, low financial inclusion, and high technology adoption rates, the country provided a distinctive opportunity within the region. By the fourth quarter of 2024, Nu had cemented its position as the leading SOFIPO, surpassing 10 million customers and accumulating USD $4.5 billion in deposits. Nu Mexico launched its first product in 2020: a no-fee credit card with customizable financing plans tailored to local needs. Since then, the company has expanded its portfolio to include a debit account, Cuenta Nu, that reached one million customers in its first month and has continued to evolve to include new features, including Cajitas Turbo with an annual 15% yield rate. Nu Mexico's portfolio also includes personal loans and secured cards, designed to help customers gain access to credit and build a credit history. Nu's 100% digital business model has allowed it to reach 98% of Mexico's municipalities, including rural areas designated as priorities by the Federal Government. The company has also been able to provide nearly half of its customers with their first credit card, delivering on its commitment to increase the penetration of financial services and promote the inclusion of more Mexicans into the system. The transformation into a bank is key to accelerating this mission. About Nu Nu is one of the world's largest digital financial services platforms, serving 110 million customers across Brazil, Mexico, and Colombia. The company has been leading an industry transformation by leveraging data and proprietary technology to develop innovative products and services. Guided by its mission to fight complexity and empower people, Nu caters to customers' complete financial journey, promoting financial access and advancement with responsible lending and transparency. The company is powered by an efficient and scalable business model that combines low cost to serve with growing returns. Nu's impact has been recognized in multiple awards, including Time 100 Companies, Fast Company's Most Innovative Companies, and Forbes World's Best Banks.
