Nubank has sent it clearest signal yet that the fintech giant is laying the groundwork to shift its legal base to the U.K., as it prepares to expand into more overseas markets.
Nubank’s billionaire cofounder and CEO David Velez told Reuters on Monday that the digital bank is now looking beyond Latin America for future growth.
“We actively thinking what are some of the jurisdictions that make sense for us to consider, as we think about the next 10 years of global expansion,” Velez told Reuters on the sidelines of the World Economic Forum’s annual meeting in Davos.
Velez said Nubank is “considering the U.K.,” but he also warned that tax changes would introduce uncertainty in terms of where it should operate.
Two months ago, Nubank was said to be working with the British government on the possibility of shifting its legal base, according to a Bloomberg News report, citing people familiar with the talks.
Such a move would be a cause for celebration among British officials seeking to persuade more tech companies to set up shop in the U.K. The country has seen homegrown companies like chip designer Arm Holdings looking overseas for further investment and growth opportunities.
Nubank’s holding company is currently based in the Cayman Islands and its corporate headquarters continues to be in Sao Paulo, Brazil, where it was founded in 2013.
Velez, a former venture capitalist with Sequoia, spotted an opportunity to disrupt Brazil’s fee-laden banking sector with a digital alternative. He recruited ex-consultant Cristina Junqueira and software engineer Edward Wible to become cofounders, and the trio built a thriving business.
The digital bank says it now has more than 110 million customers in Brazil, Mexico, and Colombia. Nubank’s net income rose to $553 million in the third quarter last year, and it generated $2.9 billion in revenues.
Since its initial public offering on the New York Stock Exchange in December 2021, Nu Holdings, as the listed entity is formally known, has become Latin America’s most valuable digital bank with a market capitalization of $55 billion.
Velez said Monday that the new administration in Washington was creating a more favorable environment for Nubank to consider entering that market.
President Donald Trump had repeatedly said that he wants to turn the U.S. into the cryptocurrency capital of the world, with promises of adopting crypto-friendly regulations and selecting crypto backers for key positions in government.
“With the U.S. getting on board, fintech and crypto are back,” Velez said. “When an administration suddenly sees fintech as being good for consumers and more competition, that makes it more attractive,” he told Reuters.
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