Nubank Seeks Banking License in Brazil to Comply With New Rule on Branding

Digital financial services platform Nubank said it intends to obtain a banking license in Brazil in 2026.

Nubank is doing so to comply with a new rule issued by Brazil’s central bank and National Monetary Council, the company said in a Wednesday (Dec. 3) press release.

The rule prevents nonbank companies from using the word “bank” in their brands, Bloomberg reported Wednesday.

Nubank holds the required operational licenses to offer its current suite of products, including licenses as a payment institution; a credit, financing and investment company; and a securities brokerage company, according to the press release.

As the company adds a banking institution to its conglomerate, its capital and liquidity requirements will not be altered, its brand and visual identity will not change, and its clients will not be affected, the release said.

Nubank has more than 110 million customers in Brazil, according to the release.

“Nubank was founded 12 years ago and has been responsible for the inclusion of 28 million individuals in the financial system,” Livia Chanes, CEO of Nubank in Brazil, said in the release. “Our identity and mission to simplify our customers’ lives will remain the same.”

Nubank’s subsidiary in Mexico, Nu Mexico, received authorization to become a bank in that country in April.

The company said in September that it applied for a national bank charter in the United States. It said at the time that it served 123 million customers in Brazil, Mexico and Colombia, and that it aimed to expand its offering to the U.S. market.

PYMNTS reported in October that Nubank’s bid for a national charter in the U.S. was part of a trend of FinTechs pursuing bank charters to streamline regulation and expand product reach.

The charter, if approved, would allow Nubank to take deposits and make loans under the Office of the Comptroller of the Currency rather than navigate 50 state regimes.

It was reported in November that Nubank was one of the FinTech challengers pressuring Mexico’s banking sector.

While the expansion of FinTechs has placed pressure on banks to modernize operations and slash fees, the FinTechs still face an uphill battle as they contend with stricter regulations, older infrastructure, and stiff competition from banks and other FinTechs.