NEW YORK, July 13, 2026, 08:05 EDT
Nu Holdings Ltd. NYSE:NU shares dipped 0.4% to $13.71 ahead of the bell Monday. Investors gave only a muted reaction after the company secured final sign-off for its unit in Mexico to run as a bank. The bigger impact could be behind the scenes, with legal protection on customer deposits set to jump sixteen times once the switch goes through.
Nu’s business in Mexico has grown past being just a minor line in the company’s valuation. The unit ended the first quarter with more than 15 million customers and $5.9 billion in deposits. That’s out of 135 million total customers and $42.4 billion of deposits for the group. By those rounded figures, Mexico brought in about 14% of group deposits, but only about 11% of customers. Average deposits per customer in Mexico were around $393, which is roughly 25% higher than the group as a whole.
| First-quarter metric | Nu Mexico | Nu group | Mexico read-through |
|---|---|---|---|
| Customers | Over 15 million | Over 135 million | About 11% |
| Deposits | Above $5.9 billion | $42.4 billion | About 14% |
| Deposits per customer | Roughly $393 | Roughly $314 | Roughly 25% higher |
Nu moved up as much as 2% after the license news Friday but closed with just a 0.66% gain at $13.76. Volume was heavy—about 122.5 million shares traded, close to double recent averages—but shares finished 26.7% below their $18.76 high from January 28. The spike in volume and lack of price follow-through suggest the market still wants to see lower-cost deposits and real credit growth before re-rating the stock, not just a new license.
Nu is switching from a SOFIPO, a type of popular-finance company with limited product options, to a full multiple bank. Bank deposits in Mexico are insured up to 400,000 UDIs, while SOFIPOs only offer coverage for 25,000 UDIs. A UDI is an inflation-protected unit. Using Monday’s official value of 8.805368 pesos per UDI, deposit insurance increases to roughly 3.52 million pesos, up from 220,134 pesos.
| Regulatory status | Insured limit | Value at July 13 UDI | Change |
|---|---|---|---|
| SOFIPO | 25,000 UDIs | About MXN 220,134 | Baseline |
| Multiple bank | 400,000 UDIs | About MXN 3.52 million | 16 times baseline |
The bigger shield lets Nu go after bigger balances and salary deposits, while keeping less customer money uninsured. That could mean higher deposit caps and the ability to take payroll direct. CEO David Vélez called Mexico “a key market for Nubank” and said plans to invest $4.2 billion there by 2030 are unchanged. Armando Herrera, CEO for Mexico, said the conversion is “an unprecedented process.” Nu International
Competition will decide how much profit companies can make from that potential. MercadoLibre Inc. NASDAQ:MELI filed a banking application for Mercado Pago in Mexico back in September 2024, asking regulators to let it offer checking, deposits, and mortgages. Revolut moved earlier, starting full banking services in January this year with over $100 million in local capital. But Nu goes in with a bigger stated customer base in Mexico.
Citi analysts, including Gustavo Schroden, have called Nu’s move to use Oxxo stores for cash services a positive step but “likely costly” and not exclusive. It helps close the gap with bigger banks, but distribution still adds to expenses. The bank license lets Nu offer more products. Mexico’s heavy use of cash hasn’t changed. Reuters
But holding this license doesn’t mean Nu will get cheaper deposits. As of March 31, the Mexican “Cajitas” savings accounts were paying annual rates between 7% and 13%. At the same time, the group’s expected-credit-loss charge rose to $1.72 billion, up from $973.5 million last year. There’s a risk that competition keeps savings rates high, even as Nu adds more payroll lending and credit, which could put Mexico operations below break-even again.
Rob Livingston will take over as Nu’s CFO on Monday, stepping into capital and liquidity planning as the company pushes ahead with its Mexico investment and a share buyback of up to $1 billion. The thing to watch now isn’t just the license. The question is if bigger insured balances can cut funding costs without triggering more bad loans.
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