Nubank, one of the largest digital financial services platforms in the world, will strengthen its presence in Colombia with a loan of up to USD$150 million from the International Finance Corporation (IFC).
(Nubank exceeded 439,000 clients in Colombia).
The 3-year local currency loan was pushed to fuel the growth of Nu’s local operations and expand access to financial services in the country.
The lack of access to formal financial services is one of the main challenges for economic growth in Colombia. Digital transformation can offer new opportunities both to improve financial inclusion and to increase the productivity of the country’s population, especially among women and minority groups.
The new loan compromises the access of Colombians to payment systems, in addition to promoting greater competition in the sector in favor of consumers.
The loan is aligned with Nu’s strategy to become the leading digital financial services company in Colombia, through a more efficient, inclusive and user-friendly option.
(David Vélez, founder of Nubank, tells how he will donate his fortune).
With more than 400,000 cards issued in the last 10 months, Nu Colombia, a subsidiary of Nubank, is the fastest growing credit card issuer in the country, with clients in 100% of the departments and close to 80% of the municipalities. .
“We are very proud that an institution like IFC has trusted us to continue generating a positive impact in Latin America. This loan reflects the confidence of globally relevant institutions in our business model, the solidity of our operation, and the progress we have generated in terms of better and more financial access in a country like Colombia where there is still low penetration of financial services. and a very high use of cash as a means of payment”highlights David Vélez, CEO and founder of Nubank.
«Our loan to Nubank means that more Colombians will have access to more and better financial services,» said Makhtar Diop, IFC CEO.
«Greater financial inclusion is a necessity for economic growth, and digital banking will play a key role in meeting the needs of underbanked and unbanked retail customers. This investment aims to both address those needs and catalyze further investment in the financial sector in Colombia and the region».
(Nu Colombia is now the fastest growing card issuer.)
Nu has a long-term commitment to Colombia. With just over a year and a half of operation, it reached 439,000 customers at the end of September 2022, a figure almost five times higher than that of the immediately previous year.
“We celebrate the sustained growth that we have achieved in recent months, which has allowed us to have clients throughout the country. With the resources of this loan we will continue working to reach more Colombians and continue to grow our product portfolio in 2023, with the aim of contributing to the development of Colombia in the long term”said Catalina Bretón, general manager of Nu Colombia.
Nubank begins 2023 with a solid position in the region, in addition to various commitments to continue growing and consolidating in the territories where it operates. The company closed the third quarter of 2022 with more than 70 million customers. This is IFC’s first investment in a digital bank in Latin America and the Caribbean.