Nubank has filed an application for a U.S. banking charter with the Office of the Comptroller of the Currency, the São Paulo-based fintech announced in a news release this week.
“Our primary focus is on driving growth in our current markets,” stated CEO David Vélez on Tuesday. “Moreover, seeking a U.S. national charter enables us to better serve our customers in the country and connect with those who have similar financial needs that could benefit from our offerings.”
As of June, Nubank boasts a customer base of 122.7 million across Brazil, Colombia, and Mexico. The fintech plans to offer services like deposit accounts, credit cards, lending, and digital asset custody in the U.S., according to company statements.
Cristina Junqueira, co-founder and chief growth officer of Nubank, has moved to the U.S. full-time to lead the new venture as CEO.
“Nubank’s mission remains to positively impact lives through top-tier digital financial services,” Junqueira remarked. “While there is work ahead of us, we are optimistic that by collaborating with regulators, we will soon be prepared to broaden our services to the larger U.S. market.”
The announcement on Tuesday supports a February report from Reuters, which indicated that Nubank was poised to introduce a new target market this year.
This move emphasizes the challenging and often unsuccessful journey that international challenger banks face when attempting to enter the U.S. market.
A notable example is Dutch neobank Bunq, which withdrew its charter application with the OCC in February 2024 after experiencing a 301-day wait. A spokesperson pointed out a “disagreement” among the OCC, FDIC, and Dutch banking authorities, but assured that Bunq is “committed to reconciling” these differences and intends to reapply at a future date.
The U.K. challenger Monzo also withdrew its OCC application in 2021 after it became apparent that the U.S. regulator was unlikely to grant approval.
Monzo’s competitor Revolut confirmed in March its desire to become a bank in the U.S. However, its quest to secure a license in its home country followed a three-year period, complicated by auditors’ inability to verify the company’s revenue figures for 2021.
Nubank announced it received regulatory approval from Mexican officials in April to operate as a bank, and is currently awaiting final operational clearance.
Nubank’s ambitions for a U.S. charter “seems aligned,” according to Jamie Friedman, a technology analyst at Susquehanna International Group, in an email to Bloomberg. He noted this development could raise questions about whether Nubank would
target Latin Americans in the U.S. or a broader customer base.
“We understand that capturing the U.S. market will be challenging,” Junqueira remarked to Bloomberg on Wednesday. “We predict that the early adopters will be those who are already familiar with our brand.”
Nubank has been publicly traded on the New York Stock Exchange since 2021, and with an approximate valuation of $77 billion, it stands as the most valuable publicly listed financial company in Latin America, as reported by Bloomberg.
As Nubank embarks on its U.S. journey, input from influential figures such as former acting Comptroller of the Currency, Brian Brooks, who is on the board of directors for Nubank’s U.S. enterprise, is expected to play a pivotal role.
This year, Nubank has also onboarded several U.S. tech executives. Recently, it appointed Michael Rihani, former product officer at Coinbase, as its new crypto officer last week. Additionally, Nubank brought on Eric Young, a former Snap executive, as its chief technology officer in August.
According to Citi analyst Gustavo Schroden, one of the primary concerns for investors is whether management might lose focus during this expansion.
Junqueira responded to this concern via a LinkedIn post earlier this week.
“We are confident in our maturity to explore new options and expand our positive impact,” she wrote. “We are in it for the long haul – this is just the beginning.”
