Nubank acquires Banco Porto Real to secure full banking licence in Brazil

Nubank has agreed to acquire Banco Porto Real de Investimentos in a move to secure a full banking licence in Brazil.

Established in 1992 in Porto Real, Rio de Janeiro, Banco Porto Real focuses on providing credit to wholesale clients.

The transaction, subject to approval by Brazil’s Central Bank, aligns Nubank with Joint Resolution No. 17 guidelines on institutional naming.

Once the process is completed, Banco Porto Real’s banking licence will be added to Nubank’s existing licences, which include a payment institution, a finance company, and a securities brokerage.

Nubank stated that Banco Porto Real’s existing obligations will be honoured under the terms of the acquisition agreement. The company also noted that adding the new licence to the Nu Pagamentos conglomerate does not create additional capital or liquidity requirements.

For Nubank’s 115 million customers in Brazil, there will be no changes to the app, products, services, brand, or the institution’s name.

In March, Nubank became a member of Febraban, the Brazilian Federation of Banks.

The company also announced it would invest R$45 billion ($8.84 billion) in the domestic market this year—nearly double the amount allocated over the previous two years.

David Vélez, Nubank’s global CEO and founder, said: “Brazil is where Nubank was born, grew, and proved that fairer, simpler financial services are possible at scale. Thirteen years later, it remains our main focus, a market where we can still significantly expand our share and continue driving the transformation of the sector.”

In April last year, Nu Mexico, Nubank’s Mexican subsidiary, received a banking licence approval from the National Banking and Securities Commission (CNBV). That development allows Nu Mexico to transition from a Popular Financial Society (SOFIPO) to a fully-fledged bank.

This article was originally created and published by Retail Banker International, a GlobalData owned brand.