Nubank, Latin America’s most valuable lender is planning to shift its legal domicile to Britain. This step will be followed by global expansion, which includes the United States, as told by its founder and CEO David Velez. Bloomberg reported in November that Nu Holdings was planning to move its legal base to Britain, which will be a major win for the country in the post-Brexit financial world.
Velez explained that Europe is a large market, and launching services there isn’t a top priority for Nubank due to the regulatory challenges and competition. Instead, he sees a potential European base as a way to manage the company and attract talent. He said, “Many emerging markets share similarities with what we’ve seen in Brazil and Mexico.” While there are no immediate plans to enter a new market, he expects to make a move within the next 18 to 24 months.
Nubank Plans Global Expansion
Since Velez launched Nubank in Sao Paulo over a decade ago, it has grown to serve more than 100 million customers across Brazil, Mexico, and Colombia, becoming one of the world’s biggest digital banks. He is expecting Trump’s administration to embrace the regulation of cryptocurrencies, which will create a more suitable environment for Nubank to expand in the market.
Nubank, currently based in the Cayman Islands, has about 40 employees working from its Berlin office, which opened in 2017. When asked about expanding globally, Velez mentioned Nubank’s $150 million investment last month in Tyme Group, a digital bank in Singapore with 15 million customers in South Africa and the Philippines, highlighting opportunities in emerging markets.
Nubank CEO Considers UK Move
David Velez said, “We are actively thinking what are some of the jurisdictions that make sense for us to consider, as we think about the next 10 years of global expansion. We’re looking at the UK, but we’re also aware that tax changes create “uncertainty about where to operate and which jurisdiction to choose.”
Nu Holdings Stock Update
Nu Holdings stock saw a slight increase last week, closing at $11.47, a 4.82% gain. Today, it’s trading at $11.53, up 0.52% from its opening price. While this upward trend is positive, the digital banking industry is volatile and prices fluctuate significantly.
Nubank prepares for global expansion, shifting its legal base to the UK marks a strategic move to capitalize on emerging markets and attract global talent. While Europe is not an immediate focus, the company continues to eye expansion opportunities in regions with growing digital banking demand, including the US and emerging markets. With its recent investments and strong customer base in Latin America, Nubank is poised to strengthen its position as a leading digital bank worldwide.
