Nu Plans to Invest $100 Million in ‘Priority’ Mexico in 2024

Carolina Millan, Bloomberg News

The Nubank website on a laptop arranged in Mexico City, Mexico, on Saturday, Aug. 5, 2023. Nu Holdings Ltd., the Brazilian digital bank that counts Warren Buffett's Berkshire Hathaway Inc. among its biggest stockholders, is betting big that its high-yield savings accounts will stoke growth in Latin America's second-largest economy. Photographer: Alejandro Cegarra/Bloomberg , Bloomberg

(Bloomberg) -- Nu Holdings Ltd, the world’s biggest standalone digital bank, is investing $100 million in its Mexico subsidiary, bringing its total investment in Latin America’s second-largest economy to $1.4 billion.

The company is looking to use the funds to expand its loan portfolio in Mexico as well as launch new products, according to a statement. Nu is working to offer the possibility of “freezing” its high yield savings account over a certain period, a product it will start testing in the coming months, said country chief Ivan Canales. The company is also looking to learn more about its clients through the development of guaranteed credit lines.

Mexico has emerged as a key market for financial services startups given that less than 50% of the population has a bank account. Nu has previously said that Mexico is its priority in 2024.

“As we’ve expressed, Nu Holdings has the ability and willingness to invest and follow the local operation’s evolution”, co-founder Cristina Junqueira said in the written statement.

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