Introduction of Nubank and its Relevance
Nubank, a digital banking platform originating from Brazil, is set to expand its operations into Mexico. The Mexican financial regulatory body, the Comisión Nacional Bancaria y de Valores (CNBV), has published an official document in the Diario Oficial de la Federación (DOF) granting authorization for Nubank to organize and operate as a multiple banking institution in Mexico.
Nubank’s Journey to Mexican Banking
Nu México, Nubank’s Mexican subsidiary and currently operating under the Sociedad Financiera Popular (Sofipo) umbrella, announced it had acquired the necessary banking license from the regulator. However, before commencing operations as a full-fledged bank, Nubank must fulfill additional requirements that will take several months.
CNBV’s Decision and Conditions
In the official document, CNBV outlined that it granted authorization based on requests submitted by Nu México Financiera and Nu Bn Tecnología since 2023. The former will organize and operate as a bank in Mexico under the name Nubank.
CNBV further explained that Nu Bn Tecnología, Nubank’s majority shareholder, will continue to hold that position within the proposed corporate structure.
The regulator confirmed that the submitted documentation met all necessary requirements, and the Banco de México (Banxico) issued a favorable opinion for granting the requested authorization.
“From a legal, financial, operational, information security, operational risk management, information technology, and anti-money laundering perspective, it is deemed appropriate to grant the requested authorization,” stated CNBV.
Conditions and Requirements
The CNBV emphasized that the authorization remains subject to fulfilling additional requirements:
- Obtaining authorization for Nubank’s operation start from CNBV within the established timeframe.
- Having a subscribed and paid-up capital of at least 13,295 million pesos before commencing operations.
- Demonstrating the necessary infrastructure and capacity to receive electronic fund transfers into bank accounts requested by clients, as well as conducting operations with Banxico.
Moreover, Nubank must adhere to specific conditions, including its official name (Nubank), indefinite duration, the performance of all activities and provision of services outlined in the Ley de Instituciones de Crédito, a domicile in Mexico City, non-transferability of authorization, and CNBV supervision.
Key Questions and Answers
- What is Nubank? Nubank is a digital banking platform originating from Brazil, known for its user-friendly mobile app and innovative financial services.
- Why is Nubank expanding to Mexico? The expansion aims to tap into the growing demand for digital banking services in Mexico and capitalize on Nubank’s successful model.
- What are the conditions for Nubank to start operating as a bank in Mexico? Nubank must meet additional requirements, such as achieving a minimum capital of 13,295 million pesos and demonstrating the necessary infrastructure for electronic fund transfers.
- Who regulates Nubank in Mexico? The Comisión Nacional Bancaria y de Valores (CNBV) is the primary regulatory body overseeing Nubank’s operations in Mexico.
