Nu, Brazil's prominent digital bank, has recently secured conditional approval from the Office of the Comptroller of the Currency to create a U.S. national trust bank named Nubank, N.A. However, it is essential to understand that this approval allows Nu to proceed to the organizational phase but does not permit operations until specific conditions set by the OCC are met, including receiving FDIC deposit insurance approval and clearance from the Federal Reserve. Within the next 12 months, Nu must also ensure full capitalization and plans to open the bank within 18 months.
The anticipated approval is seen as a pivotal moment for Nu, as it will enable the bank to operate within a federal regulatory framework. This will allow Nubank to offer deposit accounts, lending services, and digital asset custody in the U.S. Nu's commitment to a digital-first and customer-centric banking approach is pivotal as they believe it represents the future of the global financial services landscape.
While Nu remains committed to its existing markets in Brazil, Mexico, and Colombia, this expansion into the U.S. is a significant step towards becoming an innovative force in the American banking sector. Cristina Junqueira, co-founder of Nu, will lead the U.S. division, and Roberto Campos Neto, the former President of Brazil's Central Bank, will take on the role of Chairman of the Board.
Nu is particularly targeting areas such as Miami, the San Francisco Bay Area, Northern Virginia, and the Research Triangle in North Carolina to set up operations in the U.S. This strategy follows Nu's listing on the New York Stock Exchange under the ticker NU, as it continues to evolve since its inception in 2013. Significant backers, including Warren Buffett's Berkshire Hathaway, have previously recognized Nu’s potential, demonstrating investor confidence in its model.