Nu Holdings Gains Conditional U.S. Bank Approval, Eyes U.S.

Nu Holdings has obtained conditional status from the U.S. Office of the Comptroller of the Currency (OCC) to establish a national bank in the U.S

ContentsApproval signs U.S. growthGrowth across Latin AmericaEnhancing international capabilitiesThis step is a significant milestone of the digital financial services platform, which marks the steps to the expansion of its work in the American market. The new business will be named Nubank, NA.

On the 30th of the previous year, Nu Holdings filed its application with the OCC, which launched the formal procedure in order to become a U.S.-based financial institution

It is now in a bank organization stage, and should fulfill certain requirements imposed by the OCC, and also be finally approved by the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve

Upon approval, the bank should be fully capitalized in 12 months and be in operation in 18 months as required by the U.S authorities.

Approval signs U.S. growth

This is an important move in the strategy of Nu Holdings to expand its operation and product range in the U.S. Once it is granted the final approval, Nubank, NA could run on the complete regulatory framework established by the U.S. authorities

Some of the financial products that the bank will launch include credit cards, deposit accounts, loans, and digital asset custody.

The U.S. operations will be headed by one of the other co-founders of Nu Holdings, Cristina Junqueira, and the Chairman of the Board will be Roberto Campos Neto, the former president of the Central Bank of Brazil

Junqueira underscored that a national bank license permission by the federal government is a key aspect in its expansion plan in the U.S., and this is in line with its mission of providing customer-focused financial services.

Growth across Latin America

Besides its growth in the United States, Nu Holdings has not been left behind in Latin America

Its affiliate in Mexico, named Nu Mexico, has already received the permission of the National Banking and Securities Commission (CNBV) to transform into a full-fledged bank

This will enable the company to increase its products, such as the introduction of payroll accounts. Nu Mexico is, however, yet to receive the final operational certification (January 29).

Nu Holdings has been a completely licensed financial institution in Brazil since 2016

It has also submitted a banking license application in the country to incorporate its business in the regulated Brazilian banking system without changing the brand name Nubank.

Enhancing international capabilities

The experience in expanding its presence to enter the U.S. and Latin America serves as an indication that Nu Holdings would strive to comply with international regulatory requirements

The company has been able to expand its presence in the financial sector with the permission of numerous financial institutions, such as the CNBV and the Central Bank of Brazil

This universal trend is enforced by the conditional approval in the U.S and paves the way to the complete entry of Nubank in the U.S market.

Nu Holdings is working to establish strategic centers within the major cities of the United States, such as Miami, San Francisco, Northern Virginia, and the Research Triangle of North Carolina

Such sites will act as its growth and expansion hubs, which will aid its entry into the U.S. market and continue to operate well in its Latin American main markets.

The conditional approval of the OCC of Nu Holdings is the key to its expansion strategy

The company will invest in the diversification of its financial services by creating a fully regulated U.S. bank to ensure its presence in the global digital banking setting

Having a strong presence in Brazil and Mexico, this move preconditions the massive growth of Nu Holdings because it introduces its innovative, customer-oriented model to the American market.