Is Nu Holdings' Mexico Business Finally Carrying Its Own Weight?

Nu Holdings, a digital bank operating in Latin America, has seen significant growth in its Mexican business. As of the second quarter of 2026, NuBank, the largest digital bank in Latin America owned by Nu Holdings, had 16 million customers in Mexico, a 32% increase year-over-year. Prior to joining NuBank, 35% of Mexican customers lacked bank accounts and 52% lacked credit cards.

Currently, NuBank serves 16.5% of Mexico's adult population, leaving room for further expansion. Despite higher credit risk and average cost per active customer, Nu's revenue per active customer in Mexico reached $12.30 in the second quarter, outperforming Brazil's $5.60. The Mexican government recently authorized Nu to operate as a full-fledged bank in Mexico, but this could come with stricter regulations and capital requirements.

NuMexico broke even in the first quarter of 2026, two years faster than its Brazilian business, challenging the notion that Mexico would be a money pit. While not recommended for investment by Stock Advisor, Nu's Mexican business is proving to be a core growth engine for the fintech company.