Iván Canales explains why the past two years have been essential in making Nu Mexico a strong financial institution

Since arriving in Mexico in 2019, Nu has evolved into a solid financial institution that helps more and more Mexicans regain control of their finances. This transformation has allowed us to expand our portfolio and offer more products and services that are revolutionizing the way Mexicans interact with their personal finances. Today, more than 4 million customers can confirm this.

Iván Canales, General Manager of Nu Mexico, has witnessed this revolution since the beginning and now gives us a retrospective of where the company stands two years after Nu Holdings, Ltd. went public on the New York Stock Exchange.

Let’s discover with Iván why the Nu era has begun.

What has happened with Nu in the past two years? “Since going public two years ago, Nu has been able to thrive and grow globally in a very challenging macroeconomic environment. Going public may have seemed like nothing changed for our customers in Mexico, but there are certain changes. Being more regulated by financial authorities assures our customers that we adhere to the same standards as iconic companies listed on the New York Stock Exchange. In other words, we meet higher standards for the benefit and safety of our customers wherever Nu operates.

Expanding our capital base and investing in growth benefits Mexican customers as it allows us to offer a wider range of products and continuously optimize the services we provide to the Nu community. Since going public, we have delivered results that have surpassed all predictions and expectations, which can only be translated as stability.”

“This stability permeates the entire Nu business model and creates a positive and exciting chain effect for Nu Mexico, looking towards the future.”

“It’s truly inspiring to know that all this experience organically benefits the local business and that this wealth of knowledge becomes our starting point to offer an even better service experience to our Mexican customers.”

What about Nu Mexico during this period? “This year, our journey in Mexico has exceeded expectations. After twelve months of migrating to Sofipo (Popular Financial Society), a regulated institution, we have achieved significant milestones that have contributed to Nu’s local growth. We now serve over 4 million customers across the country.

This community that has formed around our service is the first to benefit from Nu being a Sofipo. While our service remains the same – efficient, human, and transparent – there are intangible benefits that come with operating under this new scheme.”

“Firstly, our customers can be certain that with Nu their investments and savings are secure.”

“By completing the regulation as a Sofipo under the Mexican government, Nu ensures the proper handling of its customers’ funds according to current legislation. This means that Nu Mexico has been qualified as an institution that provides the service our customers deserve, and their money will remain safe.”

“Nu Mexico customers can be assured that their savings are protected, not only because of the legal insurance they have but also because of the capital support we have. In fact, our capitalization in Mexico exceeds the minimum requirement for banks. Currently, Nu Mexico Financiera has a social capital of over US$700 million, surpassing the minimum capital required.”

“Furthermore, we are no longer just a company that offers a credit card. Nu Mexico now contributes to a diverse and solid ecosystem of services, increasing the possibilities for our customers. We have expanded our portfolio with a savings account, debit card, personal loans, and other products currently in testing or design phases.”

“Being a Sofipo allows us to continue innovating for the benefit of our customers, expanding our ecosystem of services, and finding solutions to new problems that arise in our users’ financial lives.”

Nu after one year as a Sofipo

“Undoubtedly, becoming a regulated financial institution has allowed us to mature in every aspect, making us the largest Sofipo in Mexico in 2023.

Becoming a Sofipo opened the door for us to offer more solutions that have been a hit with our customers, with the prime example being the Nu Account.

In the second phase of the product launch, we introduced ‘Money Boxes’ (Cajitas), a unique savings system within our app. This practice has motivated many of our customers to view savings in a more realistic, profitable, and feasible way.

With Cajitas, our customers can separate their money according to their financial strategy and see it grow. We currently offer a 15% yield without fixed terms, fees, or fine print. The product and its interface are designed to make saving a super user-friendly experience for customers with different levels of technological experience. Financial inclusion is one of our guiding principles when designing our user experiences.”

Just one week after increasing the interest rate to 15%, Nu welcomed twice as many new customers as in previous periods and received 27 times more deposits, 95% of which were stored in Cajitas. This represented six times the amount recorded in previous months. We also started testing Nu Personal Loans, a type of lightweight loan that is simple, transparent, flexible, and secure. It features fixed monthly terms and a fixed interest rate without additional guarantees or commissions.”

“Speaking of the Nu Credit Card, or the ‘Moradita’ as our customers lovingly named it, we have also had great success. According to the Annual Financial Inclusion Outlook 2023 issued by the National Banking and Securities Commission (CNBV), Nu issued half of all credit cards given to individuals by popular savings and credit entities throughout the country. We issued over 3 million credit cards in 2022, contributing to a 13% growth in personal loans for individuals in Mexico, mostly thanks to Nu.”

“It is truly satisfying to know that Nu Mexico is an institution with high capitalization and the necessary liquidity not only to take care of the customers’ funds but also to respond with sufficient strength to the changing global economic landscape.”

2023 also exceeded expectations

“This year was also special in terms of our commitment to our customers and financial inclusion in Mexico. We launched Academia Nu in partnership with Condusef. This tool provides a didactic presentation of the most basic knowledge about personal finance, helping people overcome financial stress and develop a better awareness of their money and personal management. This platform is open to everyone, it’s fully digital, and completely free.”

“We conceptualized the first edition in the form of meditation audioguides, a friendly way to delve into the world of personal finance with a smile on your face. The platform is already available, and next year there will be itinerant showcases in collaboration with important actors in financial education in Mexico.”

Nu Mexico moved to a new home 

“In August, we inaugurated our new offices in the Morales Polanco neighborhood, a space that embodies the values that define us as a company. We designed these offices with the vision of creating an inclusive, disruptive, creative, and innovative work environment that aligns with our culture. One of the pillars that support us is building strong and diverse teams. These offices also symbolize our long-term commitment to Mexico.”

Nu breaks records

“And finally, some exciting news. We welcomed the Nu Era by breaking a world record and conducting the first financial transaction underwater, 20 meters below the surface of the Yucatan Sea, right where the meteorite hit. This was part of our latest branding campaign. Challenging the established norms is a core component of our nature. This feat not only puts us on a list of achievements but takes our message to another level. We worked on a concept for this campaign that makes clear analogies to our mission: putting an end to financial prehistory and marking the beginning of a new era – the Nu era.”

What does the future hold for Nu? 

“At Nu, we dream big, and our goals are equally enormous. When it all started in Brazil, our goal was to liberate people from financial complexity. Now, Nu serves 90 million customers throughout Latin America. In Brazil, one in every two adults is a Nu customer, and this inspires us. Therefore, we know that we will continue to focus on revolutionizing the financial system. We will diversify our product portfolio and offer better solutions at lower costs, making a greater impact on people’s lives.

Exciting things are coming for Nu Mexico as well. We have started the process of transforming into a Multiple Banking institution regulated by the CNBV. This opens up a new era for Nu, where we aim to offer more and better products and benefits for our customers. This marks a major milestone in our institution’s history in Mexico, where we will have greater flexibility to achieve what matters most to us: our customers.

We want to provide that financial experience to everyone. Because everyone deserves access to a fair and humane financial system. Because everyone needs complete control over their money, with full access to information, autonomy, and the best products to optimize their wealth and time.

At Nu, we always use the phrase “it’s still day one.” This phrase goes beyond its literal meaning for those of us who work at Nu. It reminds us that our evolution must be a constant, driven by our customers’ needs. It tells us that there is always room for improvement and for becoming a better version of ourselves. Nu’s evolution as a company is no exception.”