“We thought it would be hard to beat in Mexico the growth we’ve seen in Brazil, and now we see Mexican operations beating Brazilian measures.”
In a year and a half, Nu Mexico has reached 2.1 million customers, the equivalent of 2.2% of the total adult population of the country. In Brazil, Nubank reached 53.9 million customers, equivalent to 30% of the adult population, after nine years.
Nubank became the largest issuer of new cards in Mexico in 18 months; such a position was reached in Brazil only after five years, according to the CEO.
Competition in the financial sector is weaker in Mexico than in Brazil, Velez added. Nearly 90% of Mexicans do not have access to credit cards, according to a survey by the Comision Nacional Bancaria y de Valores.
Now the fintech backed by big investors such as Warren Buffett’s Berkshire Hathaway and Softbank Group Corp wants to accelerate its growth in Mexico with a $650 million loan secured in April to expand its international business. “There is a huge opportunity for growth in the country,” he said.
Velez said the drop in Nubank shares is “disappointing” — the stock is down nearly 60% this year. Lack of interest in investing in technology companies has reduced competition for assets and could allow Nubank to acquire startups, Velez said. He added that fintech is involved in “several conversations” that could lead to acquisitions in Latin America and the United States.
Nubank’s CEO said he was not worried about the increase in delinquencies in the credit portfolio, saying delinquencies were kept “artificially low” during the pandemic. Nubank has four times more deposits than loans, Velez added, saying the risk is low. Nubank still has ample cash from the $2.8 billion raised in its initial public offering.