Finance & Economics

Nubank Launches Personal Loans in Mexico

Latin American fintech bank Nubank has announced the launch of a consumer lending program for its customers in Mexico.

Nubank Launches Personal Loans in Mexico

The new banking offer will initially be presented to a group of employees of a financial institution who will test this product before launching it as a publicly available solution for consumers.

Ivan Canales, General Manager of Nu Mexico, says that this decision of the lender is an action within the framework of a larger effort aimed at expanding the availability of loans and banking products. The bank also defines increasing the involvement of citizens in the process of obtaining financial education as one of the goals of its activities.

Ivan Canales said that the lender has a positive impact by giving Mexicans wide access to banking offers. According to him, about 20% of the adult population of the mentioned country, who have smartphones and use these devices as tools for solving various tasks, have already applied for establishing financial relations with the bank. He also said that the lender perceives the launch of a new program for individuals as a step in efforts to expand the scale of Nubank’s presence in Mexico.

The National Survey of the Availability of Financial Services in Mexico for 2021 (ENIF) testified that in this country only 33% of consumers who applied for a loan will be able to get money from a traditional bank.

After the launch of the Nubank lending program, Mexicans will be able to access the relevant services through the bank’s app. Within the framework of this format of interaction between a financial institution and a consumer, the process of filling out an application takes no more than five minutes.

The bank’s press release, published on the occasion of the launch of the consumer lending program, indicates that customers will be provided with the maximum offer and they will be able to adjust the amount and payment schedule, having previously agreed with their needs using a full simulation. Also, consumers will be able to make long-term payments at any time. In this case, there is no practice of charging additional fees or penalties.

Nubank was founded in 2013 in Brazil. Currently, this financial institution is the largest digital lender in Latin America. Nubank specializes in providing services to those consumers who are limited in the possibilities of interaction with traditional organizations of the banking sector. The financial institution, in addition to Mexico and Brazil, also serves clients in Colombia.

In 2022, the lender announced an increase in the capitalization of its investments in the Mexican business by $330 million. As a result of last year’s decision, the total amount of investments of a financial institution in this country reached $1.3 billion. This indicator made the bank one of the largest foreign investors in Mexico. The lender uses these funds to expand its product portfolio, strengthen its activities in the Mexican market, and increase its presence in all segments of the financial system of this country.

Industry studies indicate that there is currently a tendency in Mexico to reduce the volume of cash use. Local consumers are increasingly opting for contactless payments. Customers’ use of cash in stores in 2023 decreased by 23% year-on-year.

As we have reported earlier, Nubank Introduces Innovative Life Insurance Program.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.