Nubank Launches Personal Loans for Customers in Mexico

Latin American FinTech Nubank says it will begin offering personal loans to customers in Mexico.

The new product, announced Tuesday (Sept. 5), will roll out in the days ahead for a group of employees who will test the product before it is released to the general public.

Iván Canales, general manager of Nu Mexico, said in a news release that the offering was part of a goal to promote access to credit and financial products as well as financial education.

“We are having a positive impact by enabling greater access among Mexicans, as around 20% of the smartphone-connected adult population in the country has already applied to build a financial relationship with us,” he said. “We hope to continue expanding our footprint in the country with the launch of personal loans.”

The release points to findings from Mexico’s 2021 National Financial Inclusion Survey (ENIF), showing that only 33% of consumers in Mexico who apply for a loan were able to obtain one from a traditional financial institution.

Following the launch, Mexican consumers will be able to access loans through the Nu app, with applications able to be completed in under five minutes.

“Customers will receive a maximum offer and can adjust the amount and payment schedule to meet their needs, with a complete simulation,” the release said. “Additionally, users will be able to make early payments at any time, without additional fees or penalties of any kind.”

Founded in Brazil in 2013, Nubank is now the largest digital lender in Latin America, focusing on providing financial services to unbanked customers. It works with millions of people across Brazil, Colombia and Mexico.

Last year, the company announced it was adding a $330 million equity capitalization to its investment in Mexico, bringing the total amount invested in that country to $1.3 billion.

That number made Nubank one of the largest foreign investors in Mexico, with the company using the funds to expand its product portfolio, increase its penetration across market segments and strengthen its operations in the country.

Meanwhile, recent PYMNTS intelligence finds that the use of cash is declining in Mexico as local brick-and-mortar consumers embrace contactless payments — especially contactless credit and debit cards. In-store shoppers’ use of cash fell 23% year over year, while the number of consumers using contactless credit and debit cards is up significantly.