Brazilian digital lender Nubank has announced plans to invest $330m in Mexican operations via equity capitalisation to drive growth.

Specifically, the investment will be used to expand the bank’s product portfolio, increase reach across market segments and strengthen operations.

With the latest investment, the firm’s total investment in the Mexican market now amounts to $1.3bn, positioning Nu México, the local unit of the Brazilian neobank, as one of the most capitalised financial institutions in the country, the digital bank noted.

Concurrently, Nubank announced that it has secured regulatory clearance to expand its products portfolio beyond credit cards to include deposits and other financial services.

Nu Mexico general manager Iván Canales said: “This investment and regulatory approval unlocks an important growth opportunity for Nu with deposits, and, moving forward, other financial products like personal loans.”

Nu Mexico will now begin the phased roll-out of its digital savings account Cuenta Nu and debit card, which was launched last month.

According to Nubank, Mexico is its second-largest market and Nu Mexico is a crucial operation in its internationalisation roadmap.

Nubank co-founder Cristina Junqueira said: “Mexico and Colombia have shown stronger initial growth than Brazil and potentially represent an even larger opportunity for the company. We are investing heavily in Mexico because we believe in the incredible potential of this vibrant market and its growth opportunity as more people gain and increase access to high-quality financial services.”

In April this year, Nubank secured a $650m credit line to strengthen its operations in Mexico and Colombia.