Nubank, a Latin America-based financial technology firm, has launched Mexican savings accounts as it looks to scoop up market share.
The digital bank’s Mexican arm, known as Nu Mexico, opened a waiting list for the savings accounts, which will roll out in stages with first access going to current clients and members of the company’s digital forum Comunidad Nu.
Cuenta Nu will be 100% digital and will offer a daily yield, with no minimum balance requirements nor extra fees, as well as provide immediate liquidity, with customers being able to withdraw cash 24/7, without restrictions. Opening Cuenta Nu and transferring money to other accounts will be managed entirely through Nu Mexico’s app and will have Nu’s human customer service 24 hours a day through the in-app chat, phone, or email.
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Nu will also launch a debit card, which will strengthen the company’s card portfolio in Mexico. Like the Nu credit card, which is already used by more than 3 million people in the country, the debit card will be available in both physical and virtual versions and will have real-time notifications every time a transaction is made, which enables customers’ greater flexibility, security, and control over their money. Prioritising inclusion, the debit card will have a small notch on one of its sides so that it can be easily identified and differentiated by touch, as well as a different shade of purple and blue borders.
In September 2022, Nubank has joined Open Finance, a Central Bank system allowing institutions to share among themselves customers’ financial data. The feature is still in its testing phase and will be released gradually. It will soon be available to all 62.3 million customers in Brazil.
By joining the Open Finance platform, Nubank seeks to offer its customers greater control over their financial lives through a transparent and accessible experience – allowing them to manage their finances and personal credit and account information autonomously.
In October 2022, Nubank has announced the creation of Nucoin, its own cryptocurrency, expected to launch in the first half of 2023 on the Polygon blockchain network. The company’s tokens will be distributed free of charge to customers and will serve as the basis for the creation of a new rewards program in Brazil. For the development of Nucoin, Nubank chose to enter a strategic partnership with Polygon Technology, the Ethereum scaling blockchain that enhances the functionality of Ethereum while retaining the base layer’s security and decentralization.
Digital banking’s boom in Latin America
Recent research by Bank of America demonstrates that, in Brazil alone, in 2021 fintechs such as Nubank, PagBank, Mercado Pago, Ame Digital, and Banco Pan had more than 95 million monthly active users, surpassing traditional Brazilian banks, such as Caixa, Itaú, Bradesco and Santander, by more than 15 million active users a month.
In Brazil, fintechs, such as the companies mentioned above as well as PicPay, C6, and Inter, reached over 21 million downloads per month in 2021 – a growth of around 33% over 2020.
Nubank is only one example of how digital banks are changing the banking industry. In Argentina, Brubank – a 100% digital bank already authorised to operate by Argentina’s Central Bank – had already reached over 1.5 million users in 2021. It is currently planning expansion into Colombia and Peru. In August 2021, Ualá became one of the first unicorns in Argentina, valued at USD 2.45 billion. Argentina, Colombia, and Peru also have digital banks, such as Ligo, a Peruvian digital wallet; B89, one of the first Peruvian fintechs.