With $3.3 billion in deposits and 8 million customers, Mexico already stands out among Nu's operations

High GDP per capita coupled with low financial inclusion make the Latin American country a significant opportunity for the company's strategy; Cristina Junqueira details plans on the new episode of Nu Videocast

Standing as the number one business priority for Nu in 2024, Mexico has proven to be a savvy choice in the company's international expansion strategy: one year after the launch of Cuenta, the company has already surpassed 8 million customers in the country and $3.3 billion in deposits. These figures exceed those of Brazil at the same stage of operations: in the company’s home country, there were 7.7 million customers and less than $1 billion in deposits in Q1’19.

With the highest GDP per capita in Latin America (over 30% higher than Brazil's) but low financial inclusion, Mexico has a unique combination in the region, making it a significant opportunity.

This assessment comes from Cristina Junqueira, Co-founder and Chief Growth Officer (CGO) at Nubank: "There is a lot of room for growth due to the low reach of financial services in Mexico. In such a large and even wealthier country than Brazil, we see that, in certain scenarios, it could be (a market) even bigger than what we have experienced here."

Cristina made the statement during her participation in the latest episode of the Nu Videocast, a corporate series that discusses strategic themes at Nubank with the company's senior leadership.

"We are very proud of this. When we went to Mexico, we had no idea what would happen. Part of us was thinking: ‘Could any other country be as big or as successful as what we have done in Brazil?’ And when we compare (the operation in Mexico) with Brazil at the same stage, we see that Mexico is really ahead."

The phenomenon is mirrored in Colombia, where over 500,000 Colombians opened a Cuenta within two months of the product's official launch, and deposits have already surpassed $500 million as of August. At the close of Q2'24, deposits were at $220 million.

The same philosophy; A different profile

The successful experience in Brazil has facilitated different aspects of implementing the operation in Mexico, especially in terms of technology infrastructure. At the same time, Cristina emphasizes that success in Mexico owes a lot to the continuous effort to adapt to the Mexican customer's profile.

"Our biggest competitor (in Mexico) is cash. Over 40% of payments in Mexico are still made in cash; half of our customers have never had a credit card. So, there is strong work in financial education underway, so they can start using the products responsibly."

The company's strategy of offering attractive returns on deposits has also been effective, as it encourages customers to keep their money with the institution, which helps finance the growing credit portfolio.

Currently, Nu offers various returns in Mexico, depending on the liquidity of the investment in the Cajitas – the local 'Money Boxes'. This strategy, which promotes good financial habits, enables the company to provide one of the most competitive returns in the market, adapting to Mexico's macroeconomic and competitive factors.

For Cristina, offering a digital and secure option that remunerates deposits above inflation and enables customers' capital growth is transformative: "It's something that can change these customers' lives. It's the gateway to a financial life," she highlights.

The future in Mexico

Nubank's total investment in Mexico has already exceeded US $1.4 billion, reflecting its long-term commitment to the country and making it one of the most important foreign investors in the Mexican financial sector.

In this context, Nu has previously filed a formal application with the regulator to obtain a local banking license, which would allow it to offer more services.

Cristina's expectations are positive: "We are optimistic about the feedback we have received on the pace things are moving, on the level of information, and with the level of exchange we have had with the different regulators involved in the banking license process. We are very excited to see this happen in the future," she concludes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240819761268/en/

Investors Relations: J�rg Friedemann investors@nubank.com.br Media Relations: Leila Suwwan press@nubank.com.br

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