Nu Holdings secures 'milestone' approval to open a US bank
Nubank, a subsidiary of Nu Holdings (NU), announced that it has secured conditional approval from the Office of the Comptroller of the Currency (OCC) to open a bank in the United States.
One of the biggest fintech banks in Latin America, focusing on underbanked customers in Brazil, Mexico and Colombia, Nubank said that it will form a novo national bank called Nubank, N.A.
The company applied to the OCC for a US national bank charter in September after forming a board of directors for its US business, with Roberto Campos Neto, former President of the Central Bank of Brazil, serving as chairman.
Nubank said in a press release that the conditional approval from the OCC represents "a milestone in the company’s long-term strategy to expand its operational footprint and product offerings in the United States."
The national bank charter will allow it to offer deposit accounts, credit cards, and lending and digital asset custody services.
“This approval isn’t just an expansion of our operation; it’s an opportunity to prove our thesis that a digital-first, customer-centric model is the future of financial services globally,” Nu Holdings founder and CEO David Vélez said in a statement. “While we remain fully focused on our core markets in Brazil, Mexico, and Colombia, this step allows us to build the next generation of banking in the United States.”
The company said that the US organization will be led by Nu’s co-founder Cristina Junqueira, who will serve as CEO and has relocated to the US to spearhead the bank’s development and long-term growth.
“Receiving federal approval for a national bank charter is a significant step in our journey to becoming a solid, compliant, and competitive regulated institution in the US,” Junqueira said in a statement. “We look forward to delivering the transparent, efficient financial experiences already trusted by more than 127 million customers around the world to our future customers in the US.”
The company noted that it is currently in the “bank organization phase,” which involves satisfying specific OCC conditions alongside pending required approvals from the FDIC and the Federal Reserve.
Nu plans to focus on fully capitalizing the institution within 12 months and opening the bank within 18 months, which is the timeline required by federal regulators in the US.
Vélez told Reuters last January that the company was considering a possible expansion of its operations into the US, citing the Trump administration's friendlier regulatory approach around digital assets as creating a more favorable environment for Nubank to enter the market.
"With the U.S. getting on board, fintech and crypto are back," Velez said at the time. "When an administration suddenly sees fintech as being good for consumers and more competition, that makes it more attractive."
He added that "if there is a simplification of the regulatory agencies, they could make a much more interesting environment for other players to come in."
Nu's stock has gained 6% to start the year.