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). The 3-year local currency loan will be used to boost the growth of Nubank’s local operations and expand access to financial services in the country.
What does the funding mean for Nubank?
The loan is aligned with Nubank’s strategy of becoming Colombia’s leading digital financial services company and promoting access to 100% digital financial services that are more efficient, inclusive and easy to use. 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 departments and nearly 80% of municipalities.
“We are very proud that IFC has trusted us to continue generating a positive impact in Latin America. This loan reflects confidence in our business, the solidity of our operation, and the contributions we are bringing to Colombia’s financial inclusion, a country with low financial services penetration and high use of cash,” said David Vélez, CEO and founder of Nubank.
What does the funding mean for Colombia?
“Our loan to Nubank means more Colombians will have access to more and better financial services. Greater financial inclusion is a must 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 to catalyze further investment in the financial sector in Colombia and the region,” said IFC’s Managing Director Makhtar Diop.
Lack of access to formal financial services is a major challenge to economic growth in Colombia. Digital transformation can provide new opportunities to improve financial inclusion and increase productivity across the country’s population, especially among women and minority groups. The new loan will increase access to payment systems for Colombians, in addition to promoting greater competition in the industry in favor of consumers.
Nubank begins 2023 with a solid position, in addition to varied growth opportunities in all the territories where it operates. The company closed Q3 2022 with more than 70 million customers. This is IFC’s first investment in a digital bank in Latin America and the Caribbean.