Latin America’s largest digital bank entered 2026 with fresh momentum. In late February, Reuters reported that Nubank closed 2025 with approximately 131 million customers, marking roughly 15% year-over-year growth, alongside a 50% rise in quarterly net profit. The results reflect not only continued dominance in Brazil but sustained expansion in Mexico and Colombia — the two markets central to its regional growth thesis.
Strong Start to 2026
The most recent financial disclosures show several key trends shaping the early-2026 narrative:
- Customer growth: Total clients reached ~131 million by year-end 2025, with continued additions in January and February driven by mobile-first onboarding.
- Loan portfolio expansion: Credit grew approximately 40% year over year, signaling deeper engagement beyond basic accounts.
- Investment in scaling: In January, Nubank announced plans to invest over R$2.5 billion across five years in operational and infrastructure expansion, underscoring confidence in long-term growth.
While the company does not release monthly country-by-country figures, executives have repeatedly highlighted Mexico as one of the fastest-growing operations within the group. Colombia, though smaller, continues to scale its credit and deposit offerings.
Mexico: A Key Strategic Bet
In Mexico, Nubank has been transitioning from a fintech lender model toward broader retail banking capabilities following regulatory advancements. It has pledged $4.2 billion investment towards expanding its digital banking presence and fintech services in this Latin America’s growing market. The Mexican market presents a powerful growth case, boasting a large underbanked population, rapid mobile adoption, and strong demand for lower-fee alternatives.
Traditional incumbents such as BBVA México and Santander México still dominate deposits and lending, but digital challengers are steadily capturing younger consumers.
Colombia: Gradual but Steady Growth
In Colombia, Nubank competes against established institutions like Bancolombia. The Colombian banking sector has seen increasing digital adoption, especially following pandemic-era behavioral shifts.
Nubank’s strategy in Colombia has focused on controlled credit expansion and customer acquisition rather than aggressive lending — a prudent approach in a market sensitive to macroeconomic volatility.
Can Digital Banks Fully Replace Traditional Banking by the End of 2026?
Despite the impressive growth of digital banking illustrated by Nubank expansion in Mexico and Colombia, a full traditional model replacement scenario within the next 10 months remains highly unlikely. Several structural factors prevent such rapid displacement.
1) Scale and Entrenchment of Traditional Banks
Traditional banks in both Mexico and Colombia still control:
- The majority of deposits
- Corporate and SME lending
- Mortgage markets
- Government and institutional banking relationships
These segments are capital-intensive and deeply regulated, areas where digital-only players are still building capabilities.
2) Product Breadth and Trust
Digital banks excel in:
- Consumer credit cards
- Fee-free accounts
- App-based financial management
- Fast onboarding
However, traditional banks retain advantages in:
- Complex lending products
- Investment banking services
- Physical branch reassurance for older customers
- Long-standing brand trust
Trust remains a decisive factor in emerging markets where economic volatility influences consumer behavior.
3) Regulatory Evolution
Regulatory frameworks in Mexico and Colombia continue evolving to accommodate digital entrants. While supportive, they do not inherently favor full displacement of incumbents. Instead, regulators tend to promote competition and financial inclusion — not systemic disruption.
The More Realistic Outlook is Hybridization, Not Replacement
What 2026 is more likely to deliver, however, is hybrid banking dominance, where digital banks capture a growing share of retail customers, while traditional banks accelerate digital transformation. Within this framework, partnerships and embedded finance models increase.
In both Mexico and Colombia, digital banking penetration will likely rise significantly this year. But complete replacement would require a structural collapse or rapid migration of deposits and credit relationships — neither of which current data suggests.
