Latin America's largest digital bank Nubank recently encountered a problem— the Central Bank of Brazil introduced a new regulation stating that companies without a banking license cannot use the word "bank" in their name. This has become quite awkward since they have been called Nubank for many years.

What to do? Since renaming is not feasible, they need to find a way to obtain a license. It is said that they are currently looking for acquisition targets, focusing on small banks with legitimate banking licenses. Banco Digimais is one of the potential options. For a giant in Brazil with 110 million users and a market value exceeding 80 billion, paying for an "entry permit" shouldn't be a difficult task.

This also reminds us that no matter how advanced a fintech platform is, it still has to bow to regulatory red lines. Compliance is a hurdle that no one can bypass.