Nubank, the Brazilian fintech that has made significant strides in the financial technology sector, is on the cusp of a transformative change in Mexico. The National Banking and Securities Commission (CNBV) has reportedly granted the fintech approval to operate as a bank in the country, a move that could reshape the landscape of banking in Mexico.
As of April 15, 2025, several media outlets have reported that the CNBV has favorably decided on Nubank's request for a banking license. This decision follows Nubank's announcement at the end of 2023, where it expressed its intent to pursue a multiple banking license in Mexico, aiming to expand its existing offerings, which currently include savings accounts with returns, remittances, and credit cards.
A spokesperson for Nubank confirmed that they have not yet received official notification regarding the process. “We have not received official notification about the process. As soon as we have visibility, we will share the information,” the spokesperson stated. According to sources within the CNBV cited by Reuters and El Financiero, the institution has indeed received the regulator's approval, and the next step involves securing operational authorization, which could take up to 180 days.
This delay in notification is attributed to the upcoming Easter holiday, which begins on April 16, 2025. If the operational approval is granted, Nubank will be able to offer a broader range of credit and investment products, enhancing its competitive edge in the financial market.
Nu Mexico, the local subsidiary of Nubank, has been making waves since its arrival in the country in 2019, initially launching with a no-fee credit card that quickly gained popularity among consumers. In 2022, the company transitioned to a Popular Financial Society (sofipo), enabling it not only to provide credit but also to attract public funds.
This strategic shift led to the introduction of “Cajitas Nu,” a savings tool that became a hit among users and solidified its position within the market. If Nubank’s banking license is officially confirmed, Nu Mexico would join a select group of over 50 banks operating in Mexico, including the dominant “G7” banks: BBVA, Santander, Banorte, Banamex, HSBC, Scotiabank, and Inbursa.
The potential entry of a neobank like Nubank into the traditional banking ecosystem raises the stakes for established players, pushing them towards enhancing their digital experiences and financial inclusion efforts. Analysts suggest that Nubank’s biggest challenge will be to maintain its disruptive essence while navigating the regulatory landscape of traditional banking.
Despite the hurdles, Nubank's history of exponential growth and its tech-driven, customer-centric model provide it with a competitive advantage over conventional banks. The fintech has garnered attention from notable investors, including Warren Buffett and Cathie Wood, who recently added approximately $2.16 million in shares of Nu to her portfolio.
In terms of market performance, Nubank has shown resilience, with its shares outperforming many traditional banks in the United States amid a volatile market. Analysts from InvestingPro report that 11 out of 19 analysts maintain a “Buy” recommendation for Nubank, while only 2 suggest a “Sell.” JPMorgan has estimated that Nubank’s net income for 2025-2026 will range between $2.4 billion and $3.2 billion, slightly below the Bloomberg consensus.
In the first quarter of 2025, Nubank's shares increased by 4.6%, contrasting sharply with declines seen in major U.S. banks, which have experienced losses ranging from 1.6% to 13% during the same period. Over the last three years, Nubank has delivered a return exceeding 54%, outpacing both other banking institutions and the S&P 500 index.
However, Nubank faces challenges, particularly concerning rising delinquency rates in Brazil and a significant market concentration in low-income segments, where it holds over 30% market share. These factors could impact its growth trajectory as it seeks to expand into higher-income segments.
Recent strategic initiatives, such as collaborations with the Oxxo chain of stores and a $150 million investment in Tyme Group, underscore Nubank’s commitment to growth and market expansion. As the fintech prepares for its potential transformation into a bank, it aims to replicate its successful product offerings from Brazil, with an emphasis on payroll products, investments, insurance, and a marketplace.
Nubank's journey from a disruptive fintech to a formal banking institution marks a significant milestone not just for the company, but for the broader financial landscape in Mexico. With its innovative approach and commitment to customer-centric services, Nubank is poised to challenge traditional banking norms and enhance financial access for many.
As the fintech revolution continues to unfold in Mexico, the developments surrounding Nubank will be closely watched by investors, consumers, and competitors alike. The outcome of Nubank’s licensing process could set a precedent for other fintechs looking to enter the banking sector, potentially reshaping the future of finance in the region.
