Nubank, Brazil’s Giant, Hits 1 Million Accounts in Mexico In One Month – GrowthRapidly

MEXICO CITY : A million individuals in Mexico have opened financial savings accounts in Brazilian digital financial institution Nubank one month after the product’s launch, the corporate mentioned on Wednesday, with deposits amounting to 1 billion pesos ($58 million).

About 90 per cent of the deposits are being stored in Nubank’s so-called “little containers,” a separate area throughout the accounts the place clients can maintain funds and get a 9 per cent annual return, it mentioned in an announcement.

The digital financial institution’s Mexican arm, often known as Nu Mexico, final November opened a ready listing for patrons to join the financial savings accounts, its second monetary product within the nation, and formally launched it in Could.

Nubank, owned by Buffett-backed Nu Holdings, mentioned it’s now current in 9 out of 10 municipalities in Mexico.

Nubank introduced a $330 million fairness capitalization for Mexico late final 12 months, in a bid to increase its footprint within the Latin American nation.

Along with its new financial savings accounts, Nubank has issued 3.2 million bank cards in Mexico, a rustic with greater than 126 million individuals.

Nonetheless, the contribution of its Mexico operations to Nubank’s complete outcomes could be restricted within the brief time period, Citi mentioned in an evaluation word, citing low penetration within the bank card market.

Bank card transaction quantity within the nation quantities solely to about 20 per cent of Brazil’s quantity, in accordance with Citi information.

The Brazilian lender can also be increasing its portfolio in Colombia. The financial institution introduced final month it expects to launch digital checking accounts within the South American nation by the top of 2023.

($ 1 = 17.40 Mexican pesos)

Supply: Reuters