Nubank has made significant strides in its international expansion by obtaining a banking license for its operations in Mexico. On Thursday, April 24, 2025, the digital bank announced that its subsidiary, Nu México, received approval for a multiple banking license from the National Banking and Securities Commission (CNBV), the primary regulator of the banking sector in Mexico. This milestone transforms Nu México from a Sociedade Financeira Popular (Sofipo) into a fully-fledged bank, marking a crucial step in Nubank's strategy to enhance its presence in the region.
Mexico ranks as Nubank's second-largest market, trailing only Brazil. Since its entry into the Mexican market in 2019, Nubank has rapidly grown its client base to over 10 million, which represents nearly a quarter of the country's banking population. The bank's digital business model has allowed it to reach 98% of municipalities across Mexico, including rural areas, which are often underserved by traditional banking.
With the new banking license, Nubank plans to expand its portfolio significantly. The introduction of a salary account is a key opportunity for increasing financial inclusion in Mexico, where only 36% of adults currently have access to such an account, and nearly 90% of these accounts are concentrated in just five banks. David Vélez, CEO and co-founder of Nubank, emphasized the importance of Mexico in their global strategy, stating, "We have invested more than $1.4 billion in the market, not just for growth but also to drive innovation and elevate the standards of the local financial sector." This investment reflects Nubank's commitment to transforming the Mexican banking landscape.
As part of its expansion strategy, Nubank acquired the local fintech Akala in September 2021, which had been operating as a Sofipo. This acquisition has paved the way for Nubank to become the first institution of its kind to transition into a full banking operation in Mexico. The approval from the CNBV is seen as a recognition of Nubank's robust business model and its dedication to financial inclusion.
Iván Canales, General Manager of Nu México, highlighted the impact that Nubank has already made in Mexico, stating, "With this milestone, we will continue to strengthen our offering, which has already had a significant impact in Mexico by promoting the habit of saving money and improving access to credit." Alongside the salary account, Nubank will also offer higher deposit limits and increase deposit insurance coverage by 16 times through the Institute for the Protection of Bank Savings (IPAB), enhancing customer confidence in their banking services.
The Mexican financial sector is increasingly competitive, attracting the attention of various Brazilian banks, both traditional and digital. Notable players such as Bradesco and Mercado Pago have also sought to establish a foothold in Mexico. Mercado Pago, for instance, announced in 2024 that it had applied for authorization to operate as a banking institution in the country, while Revolut received its banking license a year ago.
Nubank's strategic entry into the Mexican market is underscored by the country's economic potential. As the second-largest economy in Latin America, Mexico presents a unique opportunity for financial services, particularly given the relatively low levels of financial inclusion compared to countries like Brazil. The concentration of banking services among a few institutions creates an avenue for Nubank to differentiate itself and cater to the needs of a broader customer base.
In the fourth quarter of 2024, Nubank solidified its position as a leader among Sofipos, surpassing 10 million clients and accumulating $4.5 billion in deposits. This growth trajectory is indicative of the bank's effective strategies in attracting and retaining customers in a competitive landscape. Earlier this year, Nubank also partnered with Oxxo, a popular convenience store chain, to extend its reach, allowing customers to access banking services through 22,000 locations across Mexico.
The approval of the banking license is not just a regulatory victory but a significant step towards Nubank's goal of providing innovative financial solutions tailored to the needs of Mexican consumers. As the company prepares for its official launch as a bank, it will undergo a regulatory audit before commencing operations, ensuring compliance with local laws and regulations.
Looking ahead, Nubank plans to release its first-quarter results on May 13, 2025, after market close. The company's shares, traded on the New York Stock Exchange, have seen a notable increase of approximately 13% this year, reflecting positive investor sentiment and confidence in Nubank's growth potential. As of now, the bank's market value stands at $56.6 billion, positioning it as a formidable player in the fintech landscape.
In summary, Nubank's successful acquisition of a banking license in Mexico marks a pivotal moment in its expansion strategy, promising to enhance financial inclusion and competition in the Mexican banking sector. With its innovative approach and commitment to customer service, Nubank is poised to make a lasting impact on the financial landscape in Mexico, ultimately benefiting millions of consumers who have long been underserved by traditional banking institutions.
