No More Bank?” Nubank and Fintechs Might Be Forced to Change Names Under New Central Bank Rule
A new Central Bank proposal may force fintechs like Nubank to drop the word "bank" from their names, causing changes in brand identity and consumer perception. The measure aims to protect customers and clearly differentiate banks from payment institutions.
Office of Brazilian fintech Nubank — Photo: Disclosure/Nubank
Will Nubank Have to Change Its Name?
The Central Bank has launched a public consultation — open until May 31, 2025 — to discuss a regulation that could ban the use of the word “bank” by institutions without a banking license. This targets fintechs like Nubank, PagBank, C6 Bank, among others.
🧐 Why the change?
The goal is to protect consumers by clearly identifying which institutions are authorized to offer full banking services, like loans and checking accounts. Payment institutions like Nubank offer financial services but are not legally banks.
❓ Is Nubank a bank?
No. Nubank is a payment institution regulated by the Central Bank, but it cannot collect demand deposits or lend its own funds. Its services are offered through partnerships with licensed banks.
📉 Impact if approved:
Nubank would need to rebrand and launch a communication campaign to clarify its status. This could lead to rebranding costs and a shift in its market positioning.
🔍 Banks vs Financial Institutions:
Banks: regulated, offer checking, loans, credit cards, and currency exchange.
Financial Institutions: operate in the market but may not collect public funds directly.
🏦 Top Brazilian Fintechs:
Nubank
PagBank
Mercado Pago
PicPay
Neon
C6 Bank
What do you really know about Nubank? Uncover the truth behind the fintech giant! 🎯
Did you know Nubank started in 2013 with just a purple credit card and is now one of the largest digital financial institutions in Latin America? With over 90 million customers, this Brazilian fintech grew by offering a 100% digital experience, no branches, no paperwork, and customer service that became industry standard.
But here’s what many people don’t know: despite not being officially considered a bank, Nubank operates under two different licenses in Brazil — one as a payment institution, another as a direct credit company. This allows them to offer credit cards, digital accounts, and even loans through partnerships with licensed institutions.
Another key point: Nubank went public on the New York Stock Exchange (NYSE) in 2021 and, while Brazilian, it is fiscally based in the Cayman Islands — raising questions about taxation and regulation. Plus, Nu is investing heavily in artificial intelligence and digital security to prevent fraud and enhance customer experience.
The company is also expanding its ecosystem with products like NuInvest (investment platform), insurance, debit features, and even a free financial education hub.
🟣 Nubank wants to be more than a "digital bank": it aims to become Latin America's ultimate financial super app, connecting all services in one place.
Office of Brazilian fintech Nubank — Photo: Disclosure/Nubank