The digital bank Nubank has received the green light to operate as a bank in Mexico, with a deadline of 30 days for completing the transition, as announced on Friday, July 10. This comes following a release from the company.
Nu is now under the oversight of the National Bank Securities Commission (CNBV), which means they will be officially recognized as a bank. They will also report to the Bank of Mexico and the Ministry of Finance and Public Credit, according to the announcement.
Nubank boasts over 15 million customers, affirming its position as the largest digital bank in Mexico.
The founder and CEO, David Vélez, stated that the approval and their growth highlight the effectiveness of their model, which has the potential to reshape how many people interact with their finances.
Nubank first entered the Mexican market in 2019, launching its initial product—a no-fee credit card with a personalized finance plan—in 2020. Since then, they’ve introduced savings accounts, personal loans, and secured cards.
Currently, Nubank is present in 98% of Mexico’s municipalities, gaining about 12,000 new customers daily, and helping 54% of these individuals secure their first credit card.
Prior to this, Nubank operated as a mass financial association (SOFIPO) nationwide.
Armando Herrera, CEO of Nu Mexico, noted that this transition to being a bank marks a significant achievement that couldn’t have been realized without collective efforts. He expressed commitment to serving the millions of Mexicans who trust Nubank for a fresh approach to managing their finances.
Nubank is set to continue acting as a SOFIPO until approximately April 2025 while undergoing rigorous audits before it can fully commence operations as a bank following the CNBV’s endorsement.
In November, there were indications that Nubank was joining several fintech startups like Revolut and Mercado Pago, aiming to challenge traditional banks in Mexico to enhance their services and reduce fees.
