Nubank Approved for Savings Expansion in Colombia
Brazilian fintech giant Nubank’s Colombian subsidiary, Nu Colombia, has achieved a significant milestone with formal approval from the Financial Superintendence of Colombia (SFC) to operate as a financing company. This green light not only underscores Nu Colombia’s commitment to the Colombian market but also sets the stage for an ambitious expansion of its product portfolio, notably the launch of Cuenta Nu, a groundbreaking savings product aligned with the company’s long-term vision for the country.
Becoming a financing company represents a pivotal point in Nu’s growth strategy, solidifying its position as a leader in digital financial services in Colombia. The company has already made substantial inroads, boasting customers in every department of the country and reaching an impressive milestone of 800,000 customers as of September 2023, solely through its credit card product.
Marcela Torres, General Manager of Nu Colombia, emphasizes the significance of obtaining the operating license, stating, “Obtaining this license is the result of months of hard teamwork and represents a fundamental step in our journey in Colombia.” This regulatory approval not only provides the right framework for launching Cuenta Nu but also lays the groundwork for further expansion, allowing Nu to make a positive impact on the financial landscape by enabling savings and financial plans for millions of Colombians.
Cuenta Nu, the upcoming savings product, is poised to revolutionize the way Colombians approach their financial goals. Offering a 100% digital account coupled with a physical debit card at no cost, Cuenta Nu provides users with the flexibility to save and conduct transactions around the clock, free from annuity charges, minimum balance requirements, or convoluted terms. Real-time transaction tracking, 24/7 transfers, and seamless receipt of transfers and deposits further enhance the user experience.
Nu Colombia’s commitment extends beyond regulatory approval to substantial investments in the country. The company marked its second anniversary in 2023 by announcing a capitalization of approximately US$150 million for the next two years, bringing its total investments in Colombia to nearly US$450 million since 2021. The International Finance Corporation (IFC) also increased its A/B loan commitment to Nu Colombia from an initial $150 million to a noteworthy total of $265.1 million.
Nubank’s global growth story remains robust, with significant achievements in Mexico and Brazil. In Mexico, the customer base has surged to 4.3 million, driven by the success of savings products. In Brazil, the product portfolio, spanning credit cards, savings accounts, and personal loans, continues to strengthen, with approximately 39 million, 65 million, and 7 million active customers, respectively.
