Nubank announced that it intends to obtain a banking license in Brazil, just days after the Central Bank issued a resolution last Friday (28) barring regulated institutions from using terms in Portuguese or any other language that imply activities for which they are not authorized. With the new license, the fintech would be allowed to retain “bank” in its name.
The Nubank conglomerate holds licenses as a payment institution (IP), a credit, financing and investment company (SCFI), and a securities brokerage (CTVM). “Nubank was founded 12 years ago and has helped bring 28 million people into the financial system. Our identity and mission to simplify our customers’ lives remain unchanged,” said Livia Chanes, CEO of Nubank in Brazil, in a statement.
Nubank said that adding a bank to its conglomerate “will not result in any changes” to the company’s brand or visual identity, nor affect its customers or operations. It also said the inclusion “does not imply material changes to additional capital and liquidity requirements.”
There are two possible paths: the fintech may request a new authorization from the Central Bank or acquire another bank’s license. Nubank said it has not yet decided.
The Brazilian operation accounts for most of the company’s customer base. Nubank has more than 110 million users in the country, out of a total 127 million when including Mexico and Colombia, its other two markets.
This move mirrors steps taken in other regions. In April, Nubank secured a commercial banking license in Mexico after the National Banking and Securities Commission (CNBV) approved the conversion of its authorization as a Popular Financial Society (Sofipo). At the time, the group said it was the first to obtain such approval in the country.
More recently, in September, the company applied for a banking license in the U.S. with the Office of the Comptroller of the Currency (OCC). According to the company, the move aligns with its goal of exploring new international opportunities and transforming its regional platform into a global model.