Nubank’s New Move Towards Mexico: What Does This Mean for the Country?
Brazilian fintech Nubank has announced its opening in Mexico on this Tuesday, May 7th, kicking off the company’s international expansion that might as well further spread through other Latin American countries, according to Reuters.
“Mexico is a market of great opportunity for us and although the offer is wide, there is plenty of room to fill digital channels which is where most people are starting to do their transactions, coupled with the increase of devices usage such as smartphones or tablets.” said David Vélez, CEO and founder of Nubank to Forbes Mexico.
Going by the name of Nu in the Mexican market, Brazilian’s successful startup Nubank has already raised $400 million from investors on the lines of China’s Tencent Holdings, Sequoia Capital, Tiger Global Management and Kaszek Ventures, and the company’s plan is now reach a market with 36 million people without financial inclusion, a banking system strongly concentrated and great mobile adoption. In a nutshell: similarities that were a hotbed for Nubank’s fast-paced growth in Brazil over the last few years.
The timing couldn’t be better: Mexico is currently implementing several updates in their financial system, under president AMLO’s administration. This major initiative to drive the financial sector, called Programa de Impulso al Sector Financiero, intends to change aspects of technology, services, market incentives, fees and financial inclusion, and is the outcome of many efforts headed by Mexico’s private financial institutions, the Central Bank and the Incoming Finance Ministry.
The project’s goals are hardly modest: it aims to boost financial inclusion; reduce corruption and promote a more severe inspection; attract the population to open a bank account and decrease cash’s usage; and, furthermore, increase the youngest population that takes part in the financial system.
Latin America’s second largest economy is not only following a path of growth. The country is now working with powerful resources: technology, innovation and more accurate initiatives – and that’s what Nubank has realized about Mexico.