Nubank, a fintech start-up based in Brazil, has embarked on an expansion by opening a new subsidiary in Mexico.
The new unit will operate under the name Nu.
With the move, Nubank gains the capability to deliver products outside of Brazil for the first time.
The firm also intends to launch a technology, data science and design hub in Mexico.
Nubank already has a technology hub in Berlin.
Nubank founder and CEO David Vélez believes that Mexico presents a “great opportunity”.
Vélez stated: “We’ve been studying the Mexican financial system for a few years and we heard from a lot of customers about the challenges and headaches they face with existing services.
“These services have forgotten to put the consumer at the centre of their strategy and their products.
“On top of that, more than 36 million Mexicans currently don’t have any access to the bank system – and we want to contribute for this situation to change.”
Nubank offers a no-fee credit card managed by a mobile app along with a loyalty rewards programme and is trialling its personal loan service.
It has a client base of 8.5 million and employs 1,500 people.
Among the company’s backers are Sequoia Capital, Kaszek Ventures, Tiger Global Management, QED, Founders Fund, DST Global, Redpoint Ventures, Ribbit Capital, Dragoneer Investment Group, Thrive Capital and Tencent.
These investors helped Nubank secure investment of $420m till date.