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Nu, the digital banking platform serving clients throughout Brazil, Mexico and Colombia, celebrates its profitable growth into Mexico, revealing it has amassed over eight million clients and $3.3billion in deposits previously 12 months.
When evaluating the variety of customers and deposits Nu had in Brazil to that of Mexico, on the identical stage of its operations in its residence nation (Q1’19), Nu had 7.7 million clients and fewer than $1billion in deposits. Following the launch of Cuenta in Mexico in 2023, Nu has been capitalising on the area’s excessive GDP per capita (30 per cent larger than Brazil’s) however low monetary inclusion charges.
Explaining how Nu helps fill this hole, Cristina Junqueira, co-founder and chief development officer (CGO) at Nubank defined: “There may be loads of room for development because of the low attain of monetary companies in Mexico. In such a big and even wealthier nation than Brazil, we see that, in sure eventualities, it could possibly be as massive (a market), and even larger than what we’ve skilled right here.”
Junqueria made the assertion throughout her participation in an episode of the Nu Videocast, a company collection that discusses strategic themes at Nubank with the corporate’s senior management.
“We’re very happy with this. After we went to Mexico, didn’t know what would occur. A part of us was pondering, ‘Is another nation going to be as massive or as profitable as what we’ve completed in Brazil?’ And once we examine (the operation in Mexico) with Brazil on the identical stage, we see that Mexico is de facto forward.”
Success throughout LatAm
Because of the success of Nu and Nubank in Brazil, the corporate has been capable of facilitate completely different features of implementing new infrastructure in Mexico. The digital financial institution can also be taking these classes and making use of what was realized in Colombia too. Over 500,000 Colombians opened a Cuenta account inside two months of the product’s official launch. Moreover, deposits had already surpassed $500million as of August 2024. On the shut of Q2’24, deposits have been at $220million.
In Mexico, Junqueria explains how loads of Nu’s success comes on account of the corporate’s effort to adapt to the Mexican clients’ profile.
“Our largest competitor (in Mexico) is money. Over 40 per cent of funds in Mexico are nonetheless made in money; half of our clients have by no means had a bank card. So, there may be robust work in monetary schooling underway, to allow them to begin utilizing the merchandise responsibly.”
Guaranteeing buyer loyalty
To make sure clients are conserving their cash with Nu, the digital banking platform is providing numerous returns on deposits, relying on the liquidity of the funding in Cajitas – the native ‘Cash Packing containers’. By encouraging clients to maintain utilizing the deposits providing, Nu is financing the expansion of its credit score portfolio.
This technique, which promotes good monetary habits, permits Nu to offer aggressive returns, adapting to Mexico’s macroeconomic and aggressive elements.
For Junqueria, providing a digital and safe possibility that remunerates deposits above inflation and permits clients’ capital development is transformative: “It’s one thing that may change these clients’ lives. It’s the gateway to a monetary life,” she highlights.
The longer term in Mexico
Nubank’s complete funding in Mexico has already exceeded $1.4billion, reflecting its long-term dedication to the nation.
On this context, Nu has beforehand filed a proper software with the regulator to acquire an area banking license, which might permit for the provide of extra companies and higher development.
Junqueria’s expectations are constructive: “We’re optimistic concerning the suggestions we’ve obtained on the tempo issues are transferring, on the extent of knowledge, and with the extent of alternate we’ve had with the completely different regulators concerned within the banking license course of. We’re very excited to see this occur sooner or later. Fingers crossed that it will likely be sooner relatively than later,” she concludes.
Francis Bignell
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