By Brazil Stock Guide – Nubank (NYSE: NU) received regulatory authorization to operate as a bank in Mexico, clearing the way for the digital lender to invest about $4.2 billion in the country through 2030.
Mexico’s National Banking and Securities Commission, known as CNBV, granted the approval, according to NeoFeed. The authorization represents the final regulatory step before Nubank can convert its local operation into a fully licensed bank. The company has 30 calendar days to complete the transition.
“Mexico is a key market for Nubank, and this is a decisive step in our long-term commitment to the country,” founder and global Chief Executive Officer David Vélez said in a statement.
The approval strengthens Nubank’s position in Mexico, where the company has expanded beyond 15 million customers and accumulated more than $5.9 billion in deposits. The local business reached break-even in the first quarter.
Nubank entered Mexico in 2019, marking the beginning of its international expansion. The company also operates in Colombia.
Until now, Nubank’s Mexican unit had operated as a Sociedad Financiera Popular, or Sofipo, a type of financial institution traditionally focused on lower-income consumers, unbanked customers and small businesses.
Under that structure, the company had already attracted more than 10 million customers and about $4.5 billion in deposits before accelerating growth over the past year.
A banking license is expected to allow Nubank to broaden its product offering and compete more directly with traditional lenders and other financial-technology companies seeking a larger share of the Mexican market.
Mercado Pago, the financial-services arm of MercadoLibre Inc. (Nasdaq: MELI), has filed applications for banking licenses in Mexico and Argentina. The platform also operates across several other Latin American markets.
UK-based Revolut, which remains privately held, launched its banking operation in Mexico earlier this year. The fintech is also investing in Brazil, where it recently created an advisory board to support its expansion and is pursuing a banking license.
Nubank has more than 115 million customers in Brazil and ranks as the country’s largest private financial institution by number of clients. The company does not yet hold a full banking license in its home market and instead operates through a financial conglomerate.
It has said it intends to obtain a Brazilian banking license in 2026 after the National Monetary Council and the central bank restricted the use of bank-related terms by institutions without the appropriate regulatory status.
The US is another key part of Nubank’s international strategy. The company applied last year for a national bank charter with the Office of the Comptroller of the Currency.
“The big opportunity we see in the United States is to bring a new way of doing banking to a large percentage of the population,” Vélez said in late 2025. “There will be specific niches where we will start to focus.”
Nubank shares rose 0.77% to $13.77 at about 12:53 p.m. The stock was down 19.1% for the year, giving the company a market value of about $66.5 billion.
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