Mexico, main market and priority for Nu worldwide

Mexico City. For Nu, Mexico is the priority market in its business, because in the five years it has been operating it has obtained high levels of profitability and managed to raise its first billion dollars three times faster than in Brazil, a country in which they have the greater number of users, stated its managers.

In its expansion plans, the popular financial company that operates completely digitally aims to obtain its banking license in the medium term, and claims to have the necessary experience to meet all the requirements that are needed in our country to be able to work. under that figure.

“Mexico is the number one priority for the company globally. We have an important focus on offering better and more products for the Mexican market and thus improve people’s lives, we want to build the largest consumer platform in Latin America and the Mexican market is key to that long-term strategy,” said Iván. Canales, general director of Nu México.

In a video conference, titled “Myths and Realities of Nu”, Guilherme Lagodirector of finance of the institution, specified that the profitability has been demonstrated, since in 2023 the financial firm reported global revenues of eight billion dollars and a net profit of one billion dollars.

“Mexico, along with Brazil, are the largest economies in Latin America, they have a high penetration of cell phones and a relatively high level of income among people, in addition, it is a young population that has a low penetration of banking services, for example, in credit cards. credit.

“So we are a technology company that is trying to disrupt the services market and that is a once-in-a-lifetime opportunity in the banking sector for us, which is why Mexico is the number one priority in the coming years,” he mentioned. the CFO of Nu.

Regarding whether or not they are ready as a company to become a bank, Youssef Lahrech, director of operations and president of Nu, stated that the corporate team has extensive experience in the sector.

“We are prepared to address regulatory and operational challenges, we are a digitally native team that drives innovation and improves the customer experience,” said Lahrech.

Iván Canales, the director for Mexico, also emphasized that although the delinquency levels currently reported by the firm are slightly above the average for the banking sector, this is because the way of reporting to authorities such as Sofipo is different.

Regarding the high levels of performance they offer in their savings product and the interest rate reductions they announced last week, he added that “the next review is in May and it is no coincidence that this date is related to the calendar of the Banco de México, the reference rate is a factor that we consider.”