‘Nu Credit’ by Nu Bank Now Available in Mexico
Nu credit cards are being launched by Nubank in Mexico. Nu bank is a digital, Latin American bank that originated in Brazil with a value of $10 billion and is recognized for its fully-mobile bank and credit card.
Nu Bank decided to open a branch in Mexico as it is a state with no proper banking system and has a population of 36 million.
The famous fintech company in Sao Paulo has gathered a total of $820 million and over 22 million clients from all of its branches. 'Nu Credit' will be open for Mexican clients from 18 years old and above. After the company has announced its opening, over 30,000 clients waited in line.
David Vélez, the CEO of Nu Bank, worked for Sequoia Capital, a Latin America investment firm, in 2013 before he founded his company. His partner was Cristina Junqueira and CTO Edward Wible. Throughout the years after Vélez founded the company, he and his partners selected executives to work for the company.
Nu Bank opened its doors to Mexico because they consider that the Mexicans are inclined and eager to be able to control all their finances simply since they have been struggling in living in a civilization that uses cash to function but has a limited system in digital savings and have no companies to lend them money.
The no-annual-free credit card that will be offered to the Mexicans by the company could accommodate all the needs of the Mexican and free them from this struggle.
Mexicans below the age of 24 are usually take part in the digital world and people at that age 50% of the total population in Mexico so it is only good to offer and open the service to the people of Mexico.
The country has been going through the system of the legacy banking oligopolies and has only a few percentage of the Mexican population have acquired a credit card so the company grabbed the opportunity to boost their business and help with the development of the unbanked population.
Just like how it resulted in Brazil, the founder of the company believes that they would be able to acquire millions of clients.
The company is currently experimenting using two million clients who can meet the requirements and qualifications for their project on personal loans.
Nubank has already commenced the expansion of their company by offering services to clients who are entrepreneurs and have a small business in Brazil and has already launched a beta for the services.
In Vélez's perspective, the launch of his company in Mexico will not affect the existing small banks of the country in any way and that he only aims to assist Mexico as they don't have advanced banking yet.
For the expansion and development, the company will be getting their capital from the $820 million they have raised but Vélez hasn't decided to open the company to the rest of the world and wants to keep it that way for the meantime since they are grateful for the clients who have invested in their company for a long period of time already.
Nu Bank has been declared as the greatest digital bank in the world that is self-governing.
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