Nubank files for a national banking charter

Why did Nubank (NYSE:NU) apply for a U.S.  bank charter?

Congratulations to Nubank (NYSE:NU), one of the world's largest digital financial services platforms, which announced today that it has applied for a national bank charter with the Office of the Comptroller of the Currency (OCC). Congrats also to the fantastic team led by David Portilla at Davis Polk & Wardwell LLP for their expertise; it was a pleasure partnering with them on this important initiative.

Founded in 2013 and headquartered in São Paulo, Nubank has rapidly grown to become the world’s largest digital financial services platform, serving nearly 123 million customers across Brazil, Mexico, and Colombia. Nubank’s developed an efficient and scalable business model that combines low cost-to-serve with growing returns, and stands as one of the fastest-growing and profitable financial services companies globally. A national bank charter from the OCC will support Nubank's ability to innovate responsibly and scale efficiently in the U.S. market when the time is right, reflecting the compliance-first mindset of its operations in Brazil, Mexico, and Colombia. 

From where we sit, the more welcoming regulatory landscape in the U.S. is clearly increasingly attractive to digital-first financial institutions like Nubank - companies that have demonstrated product-market fit, achieved some scale, and are ready to explore international opportunities by evolving their regional platforms into global models, specifically by unlocking new opportunities within the U.S.  We’re proud to have assisted Nubank in reaching this important milestone. If you’d like to chat charters, give us a call.