Brazilian digital financial services platform Nubank plans to secure a banking licence in Brazil in 2026.
This announcement comes after Brazilian regulators moved the prevention of non-bank companies from using the word “bank” in their brands, reported Bloomberg.
Nubank has more than 110 million customers and a market valuation of $85bn.
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Previously, Nubank was able to offer credit cards and open accounts without holding a traditional banking license due to regulatory provisions that permitted such activities.
The central bank’s decision granted companies 120 days to submit a plan outlining how they will comply with the new regulation.
The fintech company also said that the move will not affect its customers, and all operations will continue as usual.
Currently, the firm operates as a payment institution, a credit, financing, and investment company, and a securities brokerage company in Brazil.
It claims to hold all required operational licences to offer its existing suite of products and features.
Adding a banking institution to the group will not significantly change its capital or liquidity requirements and will not impact its financial stability, stated Nubank.
The move will also not change its brand and visual identity, added Nubank.
Nubank in Brazil CEO Livia Chanes said: “Nubank was founded 12 years ago and has been responsible for the inclusion of 28 million individuals in the financial system. Our identity and mission to simplify our customers’ lives will remain the same.”
In April this year, Nubank’s subsidiary in Mexico, Nu Mexico, received banking licence approval from the National Banking and Securities Commission (CNBV).
This approval enabled Nu Mexico to transition from a Popular Financial Society (SOFIPO) to a bank, expanding its product portfolio.
Earlier this year, Nubank also filed for a US banking charter.
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