Nu Holdings Ltd., known as Nubank, is contemplating re-entering the Argentine market, contingent on the country’s economic improvement.
According to Bloomberg Linea, Cristina Junqueira, the co-founder and Chief Growth Officer, highlighted the potential of Argentina’s large market.
She expressed interest in returning, provided the macroeconomic environment stabilizes.
Junqueira discussed the complexities of operating in Argentina, including challenges like inflation and the need for fair economic conditions.
She also emphasized the importance of stable relationships with Argentina’s Central Bank and Ministry of Economy.
This discussion took place in an interview on Bloomberg Línea’s podcast ‘La Estrategia del Día’.
Nubank’s initial foray into Argentina was brief, starting in June 2019 with an office in Buenos Aires and 12 employees.
The company strategically withdrew to focus on expanding in Brazil, Mexico, and Colombia.
Currently, Nubank’s market value exceeds $40 billion, ranking it among Brazil’s top four banks.
Junqueira said Nubank might revisit its plans for the Argentine market, which is significant in terms of population and Gross Domestic Product in Latin America.
However, Argentina faces financial hurdles like low credit-to-GDP ratios and high inflation. In October 2023, private sector credit in Argentine pesos was just 6% of the GDP.
Despite these challenges, Junqueira remains hopeful about Argentina’s future and the possibility of more stability for its citizens.
She stated that while Argentina presents challenges, Nubank hasn’t completely ruled out a return.
As of the third quarter of 2023, Nubank reported serving 89 million customers, with a significant increase in clientele over the past year.
The new bank also recorded quarterly revenue of $2 billion and a net profit of $303 million, showcasing its financial strength and growth potential.