Nubank will begin operating as a bank in Mexico

Nu Mexico, a subsidiary of the Brazilian financial institution Nubank , announced the approval of the license that will allow it to operate as a bank in Mexico .

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With this approval, Nubank, Mexico's largest Popular Financial Company (Sofipo), becomes the first of its kind to obtain approval from the National Banking and Securities Commission (CNBV) to operate as a banking entity, according to a statement released by the company.

The decision allows the company to expand its product portfolio in the country, including the introduction of a payroll account, a type of service that is nearly 90% concentrated in just five banks, according to the statement.

It also announced that it will increase deposit limits and expand its insurance coverage through the Institute for the Protection of Bank Savings (IPAB) once it begins banking operations.

(See: GNB Sudameris aims to grow in personal banking market ).

In a presentation in March of this year, Nubank executives stated that approval to operate as a bank would also allow for the creation of a business account service and possibly a premium card like Brazil's "Ultravioleta."

Nubank announced that it will continue expanding its financial product offering in Mexico by 2025 , with a cumulative investment of $1.4 billion in its first six years of operation.

Since its arrival in the country in 2019, the entity has reached 10 million clients in Mexico, equivalent to 23% of the banked population, accumulating $4.5 billion in deposits, according to company data .

In Brazil, Nubank, founded in 2013, has become the fourth-largest bank by customer base, with 92 million, behind only Caixa Econômica, Bradesco, and Itaú.

Combining its operations in Mexico and Colombia, the bank founded by Colombian David Vélez has surpassed 100 million customers.

EFE