Nu Holdings wins conditional U.S. banking approval

On January 29, Nu Holdings, a digital financial services platform, announced that it received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to form a new national bank in the U.S. The new U.S. national bank will operate under the name Nubank, NA.

Factually, Nu Holdings filed its application with the OCC on September 30 of last year.

According to the announcement, Nu is now in a bank organization phase, a stage that requires the corporation to meet specific standards set by the OCC, as well as to secure pending approval from the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve.

During this phase, the financial services firm announced it will aim to fully capitalize the institution within 12 months and launch the bank within 18 months, as needed by authorities.

Nu Holdings advances U.S. expansion with conditional bank approval

Nu stated that the conditional approval marks a significant milestone in the company’s long-term plan to increase its operating footprint and product line in the U.S. Following full approval, the financial services platform stated that the national bank license will enable it to function within a fully regulated government framework, allowing the introduction of credit cards, deposit accounts, loans, and digital asset custody.

Cristina Junqueira, a co-founder of Nu who moved to the U.S. to lead the bank’s long-term development and expansion, will be in charge of the U.S. organization. Roberto Campos Neto, former president of the Central Bank of Brazil, will serve as Chairman of the Board.

Junqueira commented regarding this conditional bank approval. She said that obtaining federal approval for a national bank license is a significant step toward the company’s goal of becoming a regulated, strong, and competitive institution in the U.S.

Junqueira also revealed that the company is eager to provide prospective American clients with clear, compelling financial experiences.

Vélez went on to say that this step will allow the company to establish the next generation of banking services in the U.S., while remaining entirely focused on its core markets in Brazil, Mexico, and Colombia.

Nu Holdings also highlighted that navigating the U.S. regulatory process is a key component of its previously disclosed plan to create strategic hubs in Miami, the San Francisco Bay Area, Northern Virginia, and the Research Triangle of North Carolina.

Nu Holdings strengthens global presence through regulatory milestones

The conditional approval to form a national bank in the U.S. strengthens Nu’s track record of meeting regulatory requirements across several nations. In April of last year, the Securities and Exchange Commission (SEC) reported that the National Banking and Securities Commission (CNBV) authorized Nu’s subsidiary, Nu Mexico, to become a banking institution.

Following CNBV approval, Nu Mexico became the first Popular Financial Society (SOFIPO) to obtain authorization to change into a bank. This approval also brought the company closer to expanding its product portfolio, including the introduction of a payroll account. However, as of January 29, Nu Mexico is still seeking final operational certification.

In Brazil, the financial services firm has functioned as a fully regulated financial institution since 2016. On December 2 of last year, the digital platform announced its intention to acquire a banking license in Brazil.

Nu Holdings mentioned that the inclusion of a banking institution in the conglomerate is consistent with Joint Resolution No. 17, issued by the National Monetary Council and the Central Bank of Brazil. This resolution standardizes the use of brand names by regulated institutions. As a result of this move, Nubank will completely integrate into Brazil’s regulated banking system while maintaining its brand and visual identity.

Notably, Nubank has been listed on the New York Stock Exchange since 2021 under the symbol NU.

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