Brazil-based digital challenger Nubank has submitted an application with the Office of the Comptroller of the Currency (OCC) for a US national bank charter.
In a statement, Nubank says the application is part of an effort to “explore future international opportunities by evolving its regional platform into a global model”.
If secured, Nubank plans to make its market debut with an offering comprising deposit accounts, credit cards, lending and digital asset custody services.
The challenger, founded in 2013 and headquartered in São Paulo, currently serves 123 million users across Brazil, Colombia, and Mexico, where its regional division, Nu Mexico, received approval for a banking licence from the National Banking and Securities Commission (CNBV) in April.
Nubank further bolstered operations by appointing former American Express chief Armando Herrera as CEO of Nu Mexico in September, while the division awaits final operational approval from the CNBV.
In anticipation of receiving the national bank charter, Nubank has already started outlining a board of directors for its US business.
The board is set to include former Central Bank of Brazil president Roberto Campos Neto as chairman, along with Cristina Junqueira, former Nu president and COO Youssef Lahrech, former Acting Comptroller of the Currency Brian Brooks, and former Blackstone senior managing director Kelley Morrell.
“While there’s work ahead, we believe that by working closely with regulators, we will soon be in a position to expand our offering to the broader US market,“ comments Junqueira, who will serve as CEO of Nubank’s US business.
Nubank has not provided a timeline for its proposed US expansion. However, on its website, the OCC states that it “seeks to make a decision within 120 days after receipt of a complete application or as soon as possible thereafter”. Applications are subject to a 30-day comment period.
Source: https://www.fintechfutures.com/
