By Elisa Martinuzzi and Brad Haynes
DAVOS, Switzerland (Reuters) – Nun Holdings Ltd (BVMF:), the fintech that created Latin America's most valuable lender in Nubank, is considering moving its legal domicile to Britain ahead of a global expansion that could include the United States, its founder and CEO David told Reuters. Velez.
“We are actively thinking about what are some of the jurisdictions that make sense for us to consider, as we think about the next 10 years of global expansion,” Velez said Monday.
“We are considering the United Kingdom,” he added, while warning that the tax changes bring “uncertainty in terms of jurisdiction and where to operate,” Velez said in an interview on the sidelines of the World Economic Forum's annual meeting in Davos.
Since Vélez started Nubank operations in Sao Paulo more than a decade ago, it has surpassed 100 million customers in Brazil, Mexico and Colombia, making it one of the largest digital challenger banks in the world.
Vélez said that the new US administration of President Donald Trump, which has signaled a likely adoption of regulation of digital assets such as cryptocurrencies, should create a more favorable environment for Nubank to consider entering that market.
“With the incorporation of the United States, fintech and cryptocurrencies are back,” said Vélez. “When an administration suddenly sees that fintech is good for consumers and increases competition, that makes it more attractive.”
While Europe is a relevant market from a size perspective, Vélez said it is not a priority for Nubank to launch services, given the regulatory and competitive environment. Instead, he said a possible European domicile could serve as a legal presence from which to manage the group and recruit talent.
Nubank, which is domiciled in the Cayman Islands, already has around 40 employees working in the offices it opened in Berlin in 2017.
Asked about international expansion, Velez said Nubank's $150 million investment last month in Singapore-based digital bank Tyme Group, which has 15 million customers in South Africa and the Philippines, offered a window to new emerging markets.
“When you look at a lot of emerging markets, there are a lot of similarities with what we've seen in Brazil and Mexico,” he said, adding that there were no immediate plans to enter a new market, but he hoped to make a move in the next 18 to 24 months.
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