The Brazilian lender made that pronouncement Wednesday (Sept. 30) in a securities filing, prompted by recent news reports that it was interested in acquiring the U.K.-based Monzo.
“As a matter of general practice, the company does not comment on specific opportunities,” Nu Holdings, Nubank’s parent, said in the filing.
“However, given the extent of recent media speculation, the company is providing this clarification: while we have a great deal of respect for Monzo, the company is not pursuing a transaction with Monzo.”
The filing added that Nubank is focused on expanding its footprint in Brazil, scaling operations in Mexico and Colombia and strengthening its presence in the U.S. and around the world.
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The Financial Times (FT) had reported Saturday (Sept. 26) that Nubank was considering the purchase, a deal that would value Monzo between £8 billion and £10 billion.
Sources had told the FT the sale was one of three options facing Monzo. The others involved selling up to 15% of the business to private equity groups, and undertaking a “venture capital-style” funding round, in which investors would own smaller shares in the company.
Nu began the year by obtaining conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a new national bank in the U.S.
“The new entity, to be known as Nubank, N.A., represents a significant milestone in the company’s long-term strategy to expand its operational footprint beyond its core Latin American markets,” PYMNTS wrote at the time.
In July, the company received permission to begin operating as a bank in Mexico, where its more than 15 million customers make it the country’s largest digital bank.
Roughly two weeks later, Nu announced plans to obtain a banking license in Brazil by acquiring Banco Porto Real de Investimentos, a bank that extends credit to wholesale clients.
PYMNTS wrote earlier this year about Latin America’s ongoing embrace of digital financial services, as digital wallets, account-to-account transfers and real-time payment systems have begun supplanting cash.
“The shift is structural rather than cyclical,” that report said, adding that “experts predict that by 2030, digital payments will account for roughly two-thirds of eCommerce transaction value and nearly half of point-of-sale value across the region, reflecting sustained changes in consumer behavior rather than short-term substitution.”
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