Nu Mexico, the Mexican subsidiary of Brazil-based Nubank's parent company Nu, has received authorization from Mexico's National Banking and Securities Commission to operate as a bank. The authorization transitions Nu Mexico from its previous status as a Sociedad Financiera Popular (SOFIPO), a licensed non-bank financial institution, into the country's formal banking sector. With more than 15 million customers representing over 15% of Mexico's population, Nu Mexico becomes the largest digital bank in the country by customer count. The banking authorization provides Nu with a broader regulatory platform to expand deposits, credit products, payments, and other financial services, placing it in more direct competition with Mexico's incumbent banks.
Nu Mexico Receives Banking Authorization from National Commission
The authorization from Mexico's National Banking and Securities Commission moves Nu Mexico from the non-bank fintech category into the country's formal banking sector. Until now, Nu Mexico operated as a Sociedad Financiera Popular, or SOFIPO, a licensed non-bank financial institution that can offer products such as savings accounts, loans, payments, and other financial services, often focused on underserved consumers.
The new banking status gives Nu a broader regulatory platform and places it in more direct competition with Mexico's incumbent banks. The move marks a major milestone in Nubank's international strategy. Mexico was the company's first international market, and its growth there has become central to the group's long-term expansion outside Brazil.
As a bank, Nu can broaden its product suite, attract and retain deposits more effectively, and build a deeper relationship with customers who already use its card, savings, and lending products.
Nu Mexico Operated as SOFIPO Since 2019
Nu has operated in Mexico since 2019 and launched its first product in the country in 2020: a no-fee credit card with customizable financing plans. Since then, the company has added a savings account, personal loans, secured cards, Cajita Turbo, and Scam Alert, a feature designed to help protect customers from fraud attempts.
Nu Mexico says it has a presence in 98% of the country's municipalities, has given 54% of its customers their first credit card, and has helped 60% of users start a savings habit. The company has been adding an average of 12,000 new customers per day over the past seven years, creating a large distribution base before completing its transition into a full bank.
Nubank Commits $4.2 Billion Investment Through 2030
Nubank founder and Global CEO David Vélez said the authorization and the company's growth show that its model can change how millions of people manage money. "We are building a new way of delivering financial services in Mexico, one truly centered on people," Vélez said. "The authorization we receive and the growth we have achieved confirm that this model works and has the potential to transform the relationship millions of people have with their money. Mexico is a key market for Nubank, and this is a decisive step in our long-term commitment to the country, with a total projected investment of $4.2 billion through 2030."
The $4.2 billion projected investment through 2030 shows the size of Nubank's commitment. The banking authorization gives the company more tools to convert rapid user growth into deeper monetization, but it also brings heavier regulatory expectations, capital requirements, and closer supervisory oversight.
Nu Mexico CEO Armando Herrera framed the move as the result of a long transformation from SOFIPO to bank. "Receiving authorization after an unprecedented process of transforming from a SOFIPO into a bank is a milestone we have not reached alone," Herrera said. "We got here alongside millions of Mexicans who have placed their trust in Nu to transform the way they relate to their money. We are ready to keep building with them the financial experience they deserve."
Nu Mexico Has 30 Days to Complete Banking Transformation
Nu Mexico has 30 calendar days to complete its transformation into a bank. The company said it aims to keep the customer experience unchanged during the transition and maintain communication with users throughout the process.
The authorization follows a regulatory process that began after Nu Mexico received approval for its banking license last year. Since then, the company has gone through a regulatory audit before receiving permission to begin operating as a bank.
The Mexico approval fits Nubank's broader international ambitions. The company has already established operations in Mexico and Colombia, while also targeting the US market after securing conditional approval in January from the Office of the Comptroller of the Currency to form a de novo national bank.
FAQ
What authorization did Nu Mexico receive?
Nu Mexico received authorization from Mexico's National Banking and Securities Commission to operate as a bank, transitioning from its previous status as a Sociedad Financiera Popular (SOFIPO), a licensed non-bank financial institution, into the country's formal banking sector.
How many customers does Nu Mexico have?
Nu Mexico has more than 15 million customers, representing over 15% of Mexico's population. The company has a presence in 98% of the country's municipalities and has been adding an average of 12,000 new customers per day over the past seven years.
What is Nubank's investment commitment to Mexico?
Nubank has announced a total projected investment of $4.2 billion in Mexico through 2030, demonstrating the company's long-term commitment to the Mexican market as a strategic growth priority.
