Nubank announced today, Wednesday (3), that it intends to obtain a banking license in Brazil. The decision is in line with changes announced by the BC (central bank) that prevent fintech companies that do not have a banking license from using the terms “bank” or “bank” in their names. The new rule restricts the approved designations of regulated institutions in the country.
Nubank’s brand and visual identity will not change in any way, according to the organization. Nubank says the change has no impact on customers and that all operations are continuing normally.
The institution also indicates that it currently complies with all regulatory requirements and operates with all necessary licenses as a payment institution, credit, financing and investment company and securities broker.
“The inclusion of a banking institution in the group does not imply material changes in additional capital and liquidity requirements – financial strength and flexibility remain unchanged,” the bank says in a note.
The new BC rules, published last Friday (28), specify that when providing them to the public, financial institutions must use terminology that makes clear to customers the type of entity providing the service.
Fintech is the name given to technology-based companies operating in different areas of the market, from financial companies (credit, finance and investment companies) to payment institutions.
“Institutions will be prohibited from using terms indicating the activity or type of institution, in Portuguese or in a foreign language, for which they do not have a specific operating permit,” the monetary authority said in a note.
The nomenclature covers several elements, such as trade name, trade name, trademark, Internet domain, and presentation to the public.
In the case of conglomerates, if any of the institutions obtain permission from the BC to operate as a bank, the fintech company that is part of the group can also use that name in its name.
Institutions that do not comply with the new standard must prepare an adaptation plan, which must be submitted to the central bank within 120 days. According to the Monetary Authority’s decision, they must adhere to the new rules within a maximum period of one year.