Nu, the digital banking platform serving customers across Brazil, Mexico and Colombia, celebrates its successful expansion into Mexico, revealing it has amassed over eight million customers and $3.3billion in deposits in the past year.
When comparing the number of users and deposits Nu had in Brazil to that of Mexico, at the same stage of its operations in its home country (Q1’19), Nu had 7.7 million customers and less than $1billion in deposits. Following the launch of Cuenta in Mexico in 2023, Nu has been capitalising on the region’s high GDP per capita (30 per cent higher than Brazil’s) but low financial inclusion rates.
Cristina Junqueira, co-founder and chief growth officer at Nubank
Explaining how Nu is helping fill this gap, Cristina Junqueira, co-founder and chief growth officer (CGO) at Nubank explained: “There is a lot of room for growth due to the low reach of financial services in Mexico. In such a large and even wealthier country than Brazil, we see that, in certain scenarios, it could be as big (a market), or even bigger than what we have experienced here.”
Junqueria made the statement during her participation in an episode of the Nu Videocast, a corporate series that discusses strategic themes at Nubank with the company’s senior leadership.
“We are very proud of this. When we went to Mexico, didn’t know what would happen. Part of us was thinking, ‘Is any other country going to be as big or as successful as what we have done in Brazil?’ And when we compare (the operation in Mexico) with Brazil at the same stage, we see that Mexico is really ahead.”
Success across LatAm
Due to the success of Nu and Nubank in Brazil, the company has been able to facilitate different aspects of implementing new infrastructure in Mexico. The digital bank is also taking these lessons and applying what was learned in Colombia too. Over 500,000 Colombians opened a Cuenta account within two months of the product’s official launch. Additionally, deposits had already surpassed $500million as of August 2024. At the close of Q2’24, deposits were at $220million.
In Mexico, Junqueria explains how a lot of Nu’s success comes as a result of the company’s effort to adapt to the Mexican customers’ profile.
“Our biggest competitor (in Mexico) is cash. Over 40 per cent of payments in Mexico are still made in cash; half of our customers have never had a credit card. So, there is strong work in financial education underway, so they can start using the products responsibly.”
Ensuring customer loyalty
To ensure customers are keeping their money with Nu, the digital banking platform is offering various returns on deposits, depending on the liquidity of the investment in Cajitas – the local ‘Money Boxes’. By encouraging customers to keep using the deposits offering, Nu is financing the growth of its credit portfolio.
This strategy, which promotes good financial habits, enables Nu to provide competitive returns, adapting to Mexico’s macroeconomic and competitive factors.
For Junqueria, offering a digital and secure option that remunerates deposits above inflation and enables customers’ capital growth is transformative: “It’s something that can change these customers’ lives. It’s the gateway to a financial life,” she highlights.
The future in Mexico
Nubank’s total investment in Mexico has already exceeded $1.4billion, reflecting its long-term commitment to the country.
In this context, Nu has previously filed a formal application with the regulator to obtain a local banking license, which would allow for the offer of more services and greater growth.
Junqueria’s expectations are positive: “We are optimistic about the feedback we have received on the pace things are moving, on the level of information, and with the level of exchange we have had with the different regulators involved in the banking license process. We are very excited to see this happen in the future. Fingers crossed that it will be sooner rather than later,” she concludes.
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