Medellin Native David Velez to Invest US$1.58 Billion in Colombia, Calls for End to Usury Cap

David Velez, the founder and CEO of Nubank, announced plans to invest $1.58 billion in Colombia between 2026 and 2030 to expand the digital bank's presence in the country. The investment aims to focus on advanced data and artificial intelligence platforms, new financial services, team expansion, and capital for responsible, scaled growth.

As Nubank's presence in Colombia grows, the company now holds the fourth-largest base of individual deposits in the nation, comprising approximately 10% of credit cards and 7% of individual deposits. Notably, Nubank has reached 6 million customers, accounting for about 14% to 15% of Colombia's adult population. The credit card business has been expanding rapidly, with a 60% year-over-year growth rate.

Velez also called for an end to Colombia's usury cap, describing it as a significant barrier to financial inclusion in the country. Currently, only 20% of Colombians have access to credit, forcing many to rely on informal lenders like "gota a gota" lenders, who charge exorbitant interest rates ranging from 500% to 2,000%. Velez proposed two potential solutions: establishing separate interest rate limits for different types of credit and eliminating the usury cap altogether, which he believes would increase credit availability for consumers and small businesses.