Mexico City. Nu, the Sociedad Financiera Popular (Sofipo) that operates 100 percent digitally, has already surpassed 8 million clients in Mexico between its credit and savings accounts. The pace of growth is higher than what it had in Brazil when it began operations in 2013, which is why our country remains its priority this year, the company stated.
Cristina Junqueira, co-founder and director of growth at Nubank internationally, said that in Mexico “there is a lot of room for growth, due to the limited reach of financial services. In a country as large and even richer than Brazil, we see that, in certain scenarios, it could be (a market) even larger than what we have seen at headquarters.”
During an internal Nu podcast, the executive said that the number one business priority for Nu in 2024 is Mexico, while highlighting that the country is proving to be “a wise choice in the company’s international expansion strategy.”
He said that after one year of launching the savings account, the company already has more than 8 million clients in the country (after the credit cards expired) and has 3.3 billion dollars in deposits from Mexicans.
He added that these figures exceed those of Brazil at the same stage of implementation: in the South American country there were 7.7 billion clients and less than a billion dollars in deposits in the first quarter of 2019.
“When we left Brazil and went to Mexico, we had no idea what was going to happen. In our minds, there was a part that thought, ‘Will any other country 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 actually ahead, which is surprising,” Junqueira said.
One of Nu’s main objectives upon arriving in Mexico was to adapt to the national culture and the way in which people carry out their financial transactions.
“Our biggest competitor in Mexico is cash. More than 40 percent of payments are still made in cash; half of our customers have never had a credit card. Therefore, there is a lot of financial education work going on, so they can start using the products responsibly,” he said.
According to the institution, Nubank’s total investment in Mexico has already exceeded 1.4 billion dollars, which reflects “the company’s long-term commitment to the country and making it one of the most important foreign investors in the Mexican financial sector,” while it is currently seeking its banking license in order to be able to offer more services and achieve greater growth.
“We are optimistic about the responses we have received regarding the pace at which things have been moving, the level of information and the level of exchange we have had with the different regulators that are part of the banking licensing process. We are very excited to see this happen in the future. Let it be as quickly as possible,” the director concluded.
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– 2024-08-27 14:13:53
