Digital Banking: Nubank Bolsters Mexican Market Presence by Introducing Personal Loans

Nu Mexico, a leading financial institution, has announced the launch of its new product: personal loans. The company is known for its innovative and customer-centric approach, and this new offering is no exception.

The launch will follow a phased rollout process, starting with a group of employees who will test the product before expanding it to the general market in the coming days. This approach ensures that any hiccups or issues can be addressed before the product reaches a wider audience.

Iván Canales, the General Manager of Nu Mexico, expressed enthusiasm about the new product. He stated that Nu is committed to creating a comprehensive services platform that caters to different stages of people’s financial lives. By introducing personal loans, the company aims to provide Mexicans with more options to achieve their goals. Canales emphasized that Nu’s personal loans are designed to be simple, transparent, and fair, giving customers full control over their loans with no hidden fees or conditions.

The launch of personal loans in Mexico is particularly significant because a survey conducted by Kantar in 2022 revealed that only 33% of Mexicans were able to obtain a loan from a formal financial institution, despite 60% having applied for one. Nu aims to bridge this gap and make financial products and credit more accessible to the population while promoting financial education.

The application process for Nu’s personal loans will be entirely digital and can be completed in less than five minutes. Customers will receive a maximum offer and have the flexibility to adjust the loan amount and payment schedule according to their needs. Early payments can be made at any time, without incurring any additional fees or penalties.

This new offering is part of Nu Mexico’s strategy to consolidate its position in the Mexican market and expand its multi-product platform. The company recently launched the savings product Cuenta Nu, which attracted over one million customers within a month of its public release in May 2023. This success, combined with the introduction of personal loans, reaffirms Nu’s commitment to meeting the diverse financial needs of its customers.

Nu’s strong presence in Mexico is further reinforced by its parent company, Nubank, which recently reached 85 million customers across Latin America. In late 2022, Nu announced a capitalization of $330 million, bringing its total investment in Mexico for the year to $1.3 billion. As a result, Nubank has become one of the largest foreign investors in Mexico, and Nu Mexico is now one of the best-capitalized financial institutions in the country.

Furthermore, Nu’s capitalization level by the end of June 2023 was over 500%, four times higher than the minimum regulatory requirement for SOFIPOs (Popular Financial Institutions). If Nu were regulated as a traditional bank, its capitalization indicator (ICAP) would be 42.5%. This is twice the average of the Mexican banking sector (19%) and four times the regulatory requirement for the banking sector (ICAP) (10.5%).

With its commitment to innovation and customer empowerment, Nu Mexico is poised to make a significant impact in the Mexican financial sector. As the company continues to expand its offerings and cater to the evolving needs of its customers, it is set to become a major player in the country’s financial landscape.

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