Brazilian fintech giant Nu has unveiled a new feature: personal loans with fast approval and no bureaucratic hassles. As Nubank continues its rise, this move aims to not only streamline access to credit but also solidify its status as a financial powerhouse in Latin America.
Nubank, established in 2013 by David Vélez, Cristina Junqueira and Edward Wible in Brazil, is looking to transform the financial industry, making banking services more accessible to a wider population. After entering the Mexican market four years ago, the company added 4.6 million customers in 1Q23 and 18.4 million year-over-year (YoY).
The fintech holds one of the top spots in Latin America and has launched a new feature for its Mexican clients. Personal loans are currently in a beta stage and the company is looking to expand its financial portfolio. Like many fintechs, Nubank’s service will allow people to get a loan in a very short time and without the need for bureaucratic processes.
In its second-quarter report, Nu stated that it reached “a total of 83.7 million customers, up 28% YoY, underscoring Nu’s position as one of the largest and fastest-growing digital financial services platforms worldwide and the fifth-largest financial institution in Latin America by number of customers.”
Nu offers credit cards, banking accounts and personal loans, reaching approximately US$37 million, US$60 million and US$7 million active customers, respectively.
The fintech has made substantial investments in Mexico, totaling US$1.3 billion since 2019. The company's social capital exceeds MX$12 billion (US$691.9 million), and its capitalization stands at 553%, significantly surpassing the required 131%. Nubank is among the best-capitalized companies in the region, boasting an excess cash reserve of US$2.4 billion, according to the company's statement.
To grant personal loans, the company will review the customer’s account to check for constant use of the credit or debit card and on-time payments.
This fintech sector is rapidly growing in the country due to the potential to improve financial inclusion, faster credit rates, financial education and higher consumer trust. The personal loan feature is not available for all users in Mexico, as it is only on beta version. But it is expected that by the end of the year, all Mexican users will have access to the feature.