Nubank to Apply for a Banking License in Brazil in 2026
Brazilian digital financial services platform, Nubank, has announced plans to secure a banking license in Brazil by 2026. This move comes as a response to new regulatory measures in the country which prevent non-bank companies from using “bank” in their brand names.
Currently, Nubank is a significant player in the financial sphere, boasting more than 110 million customers and a staggering market valuation of $85 billion. Until now, the company has been able to offer credit cards and open accounts without the need for a conventional banking license, thanks to certain regulatory provisions.
Impact of Regulation Changes
The recent amendment by the central bank has given companies a 120-day window to submit a plan detailing how they will comply with the new regulation. Despite this significant change, Nubank has reassured its customers that the move will not impact operations, and that all services will continue as usual.
At present, the company operates as a payment institution, credit, financing, and investment company, and securities brokerage company in Brazil. It asserts that it holds all necessary operational licenses to offer its current range of products and services. Adding a banking institution to the group will not significantly impact its capital or liquidity requirements and will not affect its financial stability, Nubank affirmed.
The brand and visual identity of the company will remain unaffected by the move to secure a banking license.
Nubank’s Commitment to Financial Inclusion
Nubank’s CEO in Brazil, Livia Chanes, has highlighted the company’s commitment to financial inclusion. “Nubank was founded 12 years ago and has been responsible for the inclusion of 28 million individuals in the financial system. Our identity and mission to simplify our customers’ lives will remain the same,” she stated.
Expansion to Mexico and the US
Earlier this year, Nubank’s Mexican subsidiary, Nu Mexico, received banking license approval from the National Banking and Securities Commission (CNBV), allowing it to transition from a Popular Financial Society (SOFIPO) to a bank and expand its product portfolio. Additionally, Nubank has also filed for a US banking charter, indicating its intent to expand its services globally.
This commitment to expansion and adaptation in the face of regulatory changes highlights Nubank’s dedication to its customers and its mission to simplify their financial lives. As the company moves towards securing a banking license, it seems poised to continue its trajectory of growth and influence in the financial sector.
Source: Here
