Nubank receives banking authorisation in Mexico

Nubank has officially received its banking license in Mexico. This transition from a financial services entity to a fully authorized bank is a major shift for the North American credit market. For retailers and operators, this means more competition in the consumer lending space. Nubank is known for its aggressive digital-first approach and low-cost credit products. The new license allows them to offer high-yield savings accounts and broader lending products directly to Mexican consumers. As a retailer, this development suggests that the available pool of credit for your customers in the region is set to expand. Nubank’s entry as a bank typically forces traditional lenders to improve their digital interfaces and lower interest rates to stay competitive. You should watch for new merchant partnership opportunities as Nubank looks to integrate its credit products at the point of sale. Their focus on the 'underbanked' population means you may soon have access to a wider customer base that previously lacked traditional credit cards or financing options. Expect more streamlined, mobile-heavy financing workflows to become the standard for your shoppers.

Source: Finextra — Lending

← Return to the library· Submit a correction