Nubank Launches in Argentina With $474M Bet to Shake Up the Fintech Market

The Latin American fintech giant is launching in the country with a multi-million dollar plan, aggressive promotions, and a focus on deposits and loans. The financial sector is already talking about a shift in the landscape.

The Argentine fintech market is in full swing after it was confirmed that Nubank, the largest fintech in Brazil and all of Latin America, will open offices in Argentina to compete fully with banks and digital wallets.

The Brazilian company, which already has over 120 million customers in the region , is considering launching its full offering in the country, with high rates for deposits, promotional benefits and greater access to credit, in a market where the use of fintech is already fully consolidated.

According to Brazilian media reports, Nubank will invest approximately US$474 million over the next five years as part of its regional expansion strategy.

Buenos Aires, Nubank’s new regional hub

The fintech company confirmed that it will open an office in Buenos Aires, which will function as a regional development hub, joining its headquarters in São Paulo, Rio de Janeiro, Belo Horizonte, Mexico City, Bogotá and its offices in the United States, located in Miami and Palo Alto.

Nubank explained that the expansion is a response to the strong growth of its user base: in just five years it went from 59 million to more than 127 million customers in Brazil, Mexico and Colombia.

Currently, Nubank has more than 9,500 employees in the region and seeks to continue expanding its presence in markets with high digital adoption.

An ideal market for launching

Nubank’s arrival comes in a particularly favorable context: in Argentina there are already more than 322 million digital accounts , including banks and virtual wallets.

On average, each Argentinian has eight financial accounts : four in fintech or digital wallets and another four in traditional banks, making the country one of the most competitive and sophisticated markets in the region for digital financial services.

With its arrival, Nubank promises to heat up the competition for deposits, credit and users , in a scenario where fintech companies are already competing on equal footing with traditional banks.

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(Featured image by Francisco Ghisletti via Unsplash)

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