As part of its expansion plan in the country, the company Nu México, belonging to the Brazilian unicorn NuBank, announced an investment of 135 million dollars during this 2021 and aims to become one of the three main issuers of credit cards in the system Mexican financier.
In an interview, Emilio González, CEO of Nu México, explained that, of the 135 million dollars announced, 70 million will come from NuBank and 65 million from financing obtained with JP Morgan, Goldman Sachs and Bank of America.
“We are very motivated and we have reasons to redouble our commitment in Mexico, with this investment that we plan to make in 2021, we show a long-term commitment to the market, as we see a great opportunity,” explained González.
Nu México’s business model is based on offering a credit card with technological features. For González, although the model is simple, this is part of the mission of the company in Mexico, since it seeks to reduce the complexity of its product for its clients.
“It is a product that the Mexican consumer is looking for a lot, it is a very simple product and that is our mission, to reduce complexity for our clients. We are looking for simple, transparent products, but this does not mean that they do not have functionality ”, pointed out González.
After more than a year of operation in Mexico, the company has received close to 1 million 500,000 applications; however, it still wants to have greater penetration, according to its manager.
“We are not a credit card company, but we are a technology company that offers financial services… Today we are month by month, within the top five of issuers of new credit cards and we want Nu México to be within the top three of new credit card issuers ”, Emilio González said regarding a market where as of last December there were more than 27 million plastics of this type in the country.
Risk model, online
Asked about the behavior of the Mexican market during the economic crisis generated by the pandemic, González acknowledged that, although in the first months of the emergency there was uncertainty, as time passed there were signs of recovery, which helped his clients also have more confidence in the product of Nu México.
“Last year there was a lot of uncertainty in the first months of the pandemic, we had to change many plans … as the summer went by and there was more stability, that is, more clarity of what was going to happen, and we saw the feedback from our customers, it gave us much more confidence to accelerate our growth, “he explained.
In this context, González pointed out that, although with the crisis there was an increase in credit risk, the company has also developed better models to reduce the risk of default.
“The risk is in line with what we are expecting and we are working with credit models that we receive internally with what we have learned in the last year,” he explained.
NuBank recently announced a capital raise of 400 million dollars, as part of its G series, in order to consolidate its international expansion in Colombia and Mexico.