Post by bcellphonelist on Feb 24, 2024 0:16:12 GMT -5
Mexico City – Nu Holdings Ltd. (NU) points out that the name of the game in 2024 will be Mexico, showing that the Brazilian digital bank is willing to assume the losses necessary to accelerate its growth in the country, without setting a deadline to start generating profits in what is its second largest market after Brazil. “There is no limit to how long we will wait to obtain the profit (…) We will not have profits in 2024 and then it will depend on the growth trajectory.
But our priority will be to do the best in the long term," he said. Cristina Junqueira co-founder of the Brazilian company and director of growth during Switzerland Mobile Number List an interview for Blo Saudi Arabia Mobile Number List omberg Línea's Strategy of the Day Podcast. The executive recalled that at the holding level, Nubank has 2.3 billion dollars reserved to grow in the markets in which it operates, which are Brazil, Mexico and Colombia. The important thing for the company, he stated, is that the red numbers are justified and are “well-thought-out and calculated losses” to attract the customers they want.
Although Mexico will not provide a greater number of clients to Nubank than Brazil, according to Junqueira it could give it greater income than its headquarters "because there is a very large demand for products and services and much less penetration in the population." The company has a similar approach when it comes to delinquencies in the portfolio of Nu México, the name of the subsidiary in the country that today operates as Sociedad Financiera Popular (Sofipo), which had a delinquency rate (IMOR) of 10.26% at the end of September, above the 9.85% of the sector according to data from the National Banking and Securities Commission (CNBV). The data is also higher than the IMOR of 2.15% reported by the commercial banking sector in the same month, a group that Nu México wants to join after making its formal application to the financial regulator in October 2023 to obtain a banking license.
Junqueira commented that although the delinquency rate is a little higher, it is proportional to the clients they serve and did not share data on the range in which they seek to maintain this indicator. “We are not resolving to obtain a delinquency figure, we are acquiring many clients that fit the risk and usage profile that we want in our client base,” he stated. Open regulators Regarding the process to obtain a banking license in Mexico, the Nubank executive commented that they would like to have the endorsement of the authorities this year.
But our priority will be to do the best in the long term," he said. Cristina Junqueira co-founder of the Brazilian company and director of growth during Switzerland Mobile Number List an interview for Blo Saudi Arabia Mobile Number List omberg Línea's Strategy of the Day Podcast. The executive recalled that at the holding level, Nubank has 2.3 billion dollars reserved to grow in the markets in which it operates, which are Brazil, Mexico and Colombia. The important thing for the company, he stated, is that the red numbers are justified and are “well-thought-out and calculated losses” to attract the customers they want.
Although Mexico will not provide a greater number of clients to Nubank than Brazil, according to Junqueira it could give it greater income than its headquarters "because there is a very large demand for products and services and much less penetration in the population." The company has a similar approach when it comes to delinquencies in the portfolio of Nu México, the name of the subsidiary in the country that today operates as Sociedad Financiera Popular (Sofipo), which had a delinquency rate (IMOR) of 10.26% at the end of September, above the 9.85% of the sector according to data from the National Banking and Securities Commission (CNBV). The data is also higher than the IMOR of 2.15% reported by the commercial banking sector in the same month, a group that Nu México wants to join after making its formal application to the financial regulator in October 2023 to obtain a banking license.
Junqueira commented that although the delinquency rate is a little higher, it is proportional to the clients they serve and did not share data on the range in which they seek to maintain this indicator. “We are not resolving to obtain a delinquency figure, we are acquiring many clients that fit the risk and usage profile that we want in our client base,” he stated. Open regulators Regarding the process to obtain a banking license in Mexico, the Nubank executive commented that they would like to have the endorsement of the authorities this year.
