Nubank clears major hurdle in securing Mexico banking license
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A banner for Nubank, the Brazilian FinTech startup, hangs on the facade at the New York Stock Exchange (NYSE) to celebrate the company's IPO in New York, U.S., December 9, 2021. REUTERS/Brendan McDermid
MEXICO CITY (Reuters) -Brazilian fintech Nubank said on Thursday that its Mexico arm received regulatory approval from the Mexican National Banking and Securities Commission to begin the process of becoming a full-service bank.
In a statement, Nubank, one of the fastest-growing digital lenders in the world, said the process to secure the banking license in Mexico now requires a "rigorous regulatory audit" before obtaining final authorization.
The fintech launched a no-fee credit card in Mexico in 2020 and added savings accounts in 2023, announcing later that year that it was seeking a Mexican banking license to expand its services to be able, for example, to handle direct deposits of salaries for customers and higher deposit limits.
Nubank currently already has 10 million customers in Mexico, its founder and CEO David Velez said in a company statement.
Velez called the transition into a bank a "landmark achievement that we trust will stimulate further innovation and competition in Mexico."
(Reporting by Andre Romani; Writing by Brendan O'Boyle; Editing by Sarah Morland)
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