Subscribe
Logo
Logo
  • Topics Icon Topics
    • AI Icon AI
    • Banking Icon Banking
    • Blockchain/DeFi Icon Blockchain/DeFi
    • Embedded Finance Icon Embedded Finance
    • Fraud/Identity Icon Fraud/Identity
    • Investing Icon Investing
    • Lending Icon Lending
    • Payments Icon Payments
    • Regulation Icon Regulation
    • Startups Icon Startups
  • Podcasts Icon Podcasts
  • Products Icon Products
    • Webinars Icon Webinars
    • White Papers Icon White Papers
  • TechWire Icon TechWire
  • Search
  • Subscribe
Reading
LatAm22: Nubank makes inroads in Mexico’s highly concentrated banking market
ShareTweet
Home
Fintech
LatAm22: Nubank makes inroads in Mexico’s highly concentrated banking market

LatAm22: Nubank makes inroads in Mexico’s highly concentrated banking market

David Feliba·
LatAm
·Dec. 13, 2022·3 min read

MIAMI, Fla. — Two years after its launch in Latin America’s second-largest market, Nubank, the biggest digital bank in the region, is making progress in Mexico amid a highly concentrated banking industry.

“The industry in Mexico is not competitive,” Iván Canales, General Manager at Nubank México, said at Fintech Nexus Latam 2022 in Miami. “Five incumbents have 80% of the [loan] market.”

With a “your margin, my opportunity” mindset, the neobank, which reports over 70 million customers in Latin America, recently rolled out its second product in the North American country.

After its purple credit card was released, the bank launched “Nu Cuenta.” It is a virtual account that provides more convenient access to clients’ funds.

“I am sure some of the folks here have a savings account in Mexico and know of the inability to take out money over the weekends or after 4 p.m. any day”, Canales said. “That is an important pain point to be solved.”

Nu Cuenta, Nubank’s digital account

At the same time, he said, yields offered to account holders are “relatively low” in the traditional Mexican market. For that reason, the Nu account is also expected to provide a better return to depositors. He did not specify what that return would be.

Iván Canales, general manager at Nu México.
Iván Canales, general manager at Nu México.

Nu México’s efforts in the country are significant in an economy dominated by cash. Financial inclusion gaps still exist despite the fast-growing fintech segment in the past few years. According to World Bank data, Mexico is one of the least banked countries in the region regarding adults with bank accounts.

“Less than 15% of Mexicans have access to traditional bank credit cards,” Canales said at Fintech Nexus Latam 2022. However, he underscored the opportunity to serve the financially excluded, pointing out that 80% of them have access to smartphones and use social media regularly. He said this provides companies like Nubank with opportunities to grow digital banking. “It creates a bedrock for innovation,” he said.

According to company data, roughly 40% of their customers in the country did not have a credit card before.

Investing in Mexico

The company has recently announced a $330 million equity capitalization in Mexico as it moves forward with this commitment to grow outside of Brazil. The new investment into the North American country adds to a previous $1 billion. Canales said that made Nubank “one of the largest foreign investors” in Mexico. Also, one of the “most capitalized” financial institutions.

“We believe there is a lot of potential in Mexico, and this new investment fuels our market portfolio expansion,” he said.

Iván Canales, general manager at Nu México, at Fintech Nexus Latam 2022.
Iván Canales, general manager at Nu México, at Fintech Nexus Latam 2022. | John K. White, Fintech Nexus News

According to Canales, the credit card market was “significantly underpenetrated” in Mexico when the digital bank introduced the product back in 2020. The market offer at the time was not satisfying, he said. “Now, with the virtual account, some of the numbers in Mexico also tell a story that there is a lot to get done.”

Advancing education

For Nubank and other digital players to grow faster, Canales argued that more is needed on the educational front.

“One of the implications for the market being underpenetrated is that many people really don’t understand how to use financial products responsibly,” he said.

Nu Blog, where the company posts personal finance posts, received 7.5 million visits last month. “It speaks of a high demand for quality financial education,” he said. “There is a lot that we can do to advance this.”

Related:

  • Nubank, LatAm fintechs pivot to profitability pursuit amid rising rates
  • LatAm’s Mercado Libre fintech revenue rises by 94%
  • Brazil’s Nubank reaches break-even, reports 70 million customers

In the last quarter, Nubank reported over 70 million clients in Latin America. More than 95% of Nubank’s clientele is located in Brazil. Still, Nubank has made inroads in other bigger-sized economies in the region. In Mexico, its customer base rose to 3 million. In Colombia, the neobank reports 439,000 customers.

  • David Feliba
    David Feliba

    David is a Latin American journalist. He reports regularly on the region for global news organizations such as The Washington Post, The New York Times, The Financial Times, and Americas Quarterly.

    He has worked for S&P Global Market Intelligence as a LatAm financial reporter and has built expertise on fintech and market trends in the region.

    He lives in Buenos Aires.

    View all posts
Tags
Iván Canaleslatam2022LatAm22NuNubank
Related

From CoDi to DiMo: Mexico’s second shot at growing digital payments

Nubank’s Credit Loan Strategy: How It Works

Brazil’s Nubank profit surges to nearly $400M in Q1 2024

Nubank reaches 100 million customers across Latin America

Popular Posts

Today:

  • Ahead of AIOutsmart Pricing Objections Before They Arise with AI Jul. 1, 2025
  • Fintech Nexus – Newsletter Creative (2)Building the Bot Workforce May. 28, 2025
  • WP UmbrellaTo Bank or Not to Bank: The ILC Question Jun. 5, 2025
  • TechNexus The AI IssueThe AI Paradox Jun. 18, 2025
  • Vesey Ventures – Julia HuangWhy agentic AI will spark commerce’s next PayPal moment Apr. 10, 2025
  • Paraform Founders, Jeffrey Li and John KimFunded: Paraform raises $20M to put top recruiters, not AI, in the driver’s seat Jun. 27, 2025
  • Stylizedhouse-with-EKGFintech x the One Big Beautiful Bill Jun. 26, 2025
  • TechNexus The AI IssueSteal Like an AI? Defining Fair Use & Creativity Jun. 25, 2025
  • Revised-AI-InvoiceAI Faces Skepticism. Startups Say: OK, Pay When it Works Jun. 25, 2025
  • Globe-money-symbolsOPINION: Why Brazil and India are leading the global digital shift through payment innovation Jun. 24, 2025

This month:

  • WP UmbrellaTo Bank or Not to Bank: The ILC Question Jun. 5, 2025
  • GreenliteAI-Alex-WillGreenlite AI is on a mission to revolutionize banking compliance Jun. 10, 2025
  • DanMurphy-FN-headshotCFPB’s Next Open Banking Battle Begins Jun. 3, 2025
  • Current stablecoin adoptionWhy Banks (and Fintechs) Need to Embrace Stablecoins Today Jun. 12, 2025
  • ai-work-nexusWalkMe Vets Declare War on SaaS Bloat with $10M Seed for Autonomous Agents Jun. 10, 2025
  • Ben Hemani, Founding Partner at Bison VenturesThe Risk and Reward of Betting Big on AI’s Next Frontier Jun. 4, 2025
  • Jon StonaTips from Airwallex x McLaren on Making the Best of a Fintech Sponsorship  Jun. 18, 2025
  • Ironclad State of AI ReportThe Economics of AI Trust Jun. 11, 2025
  • Email-AI-pieceAvatar CEOs Have Entered the Meeting Jun. 18, 2025
  • TechNexus The AI IssueMeeker’s AI Bombshell + The VC Betting on AI Reshaping The Physical World  Jun. 4, 2025

  • About
  • Contact
  • Disclaimer
  • Privacy Policy
  • Terms
Subscribe
Copyright © 2025 Fintech Nexus
  • Topics
    • AI
    • Banking
    • Blockchain/DeFi
    • Embedded Finance
    • Fraud/Identity
    • Investing
    • Lending
    • Payments
    • Regulation
    • Startups
  • Podcasts
  • Products
    • Webinars
    • White Papers
  • TechWire
  • Contact Us
Start typing to see results or hit ESC to close
lis digital banking USA Lending Club UK
See all results