Nu Mexico, a subsidiary of Nubank, has announced the approval of its banking license by the National Banking and Securities Commission (CNBV).

With this approval, Nu becomes the first Popular Financial Society (SOFIPO) to receive the green light to transition into a bank.

This development brings the company closer to expanding its range of products, including the introduction of a payroll account.

“Mexico is a key pillar of our global strategy. We’ve already made significant progress in terms of growth, reaching over 10 million customers in the country. We have invested over $1.4 billion in the market, not only to scale our presence, but also towards driving innovation and elevating the standards in the local financial sector,”

said David Vélez, CEO and founder of Nubank.

To complete its transformation into a bank, Nu Mexico will undergo a comprehensive regulatory audit before receiving authorisation to begin banking operations.

During this period, Nu Mexico’s customers will continue to receive the same user experience.

“Currently, Nu has already gained the trust of nearly a quarter of Mexico’s banked population. With this milestone, we will continue working to strengthen our differentiated offering, which has already made a significant impact in Mexico by promoting savings and improving access to credit,”

said Iván Canales, General Manager of Nu Mexico.

Once it begins banking operations, the company plans to expand its impact in Mexico by increasing deposit limits, introducing payroll accounts, and multiplying deposit insurance coverage by 16 times through the Institute for the Protection of Bank Savings (IPAB).

Featured image credit: edited from freepik