Brazil Regulators Halt Nubank’s Bank-Linked Marketing Amid Licensing Dispute
Brazilian regulators have barred Nubank from marketing services as bank-linked products without a proper license, a MOVE targeting the country's largest fintech as it serves 110 million customers. With a valuation exceeding $80 billion—surpassing all licensed banks in Brazil—the decision aims to prevent consumer confusion over deposit safety.
Nubank now faces a strategic crossroads. Rather than enduring Brazil's lengthy licensing process, the firm is exploring acquisitions of smaller licensed banks, including loss-accumulating targets like Banco Digimais SA for potential tax benefits. A full license application remains a fallback option.
The central bank's crackdown reflects broader efforts to close regulatory gaps that enabled fintechs to offer banking-adjacent services without full compliance. Nubank's meteoric rise since 2013 Leveraged this now-closing loophole, highlighting shifting priorities in Brazil's financial oversight.
