A new regulation from Brazil’s Central Bank is forcing a reckoning for fintech companies like Nubank, possibly impacting their branding and public image. The rule, approved December 27th, prohibits financial institutions without a full banking license from using the terms “bank” or “bank” in their names [[1]]. The move, part of a broader effort to clarify distinctions within the rapidly evolving financial technology sector, gives companies up to one year to comply and could lead to important rebranding efforts across the industry.
See how a decision by the Central Bank could force a change in the NuBank brand
Photo: Nubank/Reprodução/ND Mais
Brazilian fintech giant Nubank is facing potential branding changes following a recent decision by the country’s Central Bank. The regulator has prohibited financial institutions without a full banking license from using the terms “bank” or “bank” in their names, trademarks, and online domains.
Approved by the National Monetary Council (CMN) on December 27th and detailed in Joint Resolution 17/2025, the measure targets fintechs and technology companies offering financial services, giving them up to one year to comply. This move comes as regulators worldwide scrutinize the rapidly evolving fintech landscape.
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The Central Bank estimates that between 15 and 20 institutions will be directly impacted by the new rule. As a result, Nubank may be required to change its name.
BC prohibits the term “bank” for fintechs without a banking license
Photo: Divulgação/Nubank/Reprodução/ND Mais
What the Central Bank’s Decision Means
The new rule prohibits the use of words that suggest a type of institution for which the company does not have specific authorization. This applies to both the Portuguese version (“banco”) and terms in other languages (“bank”), and encompasses company names, trade names, trademarks, internet domains, and any form of public presentation.
In practice, a fintech licensed only as a payment institution, for example, cannot retain “bank” in its name if it does not have authorization to operate as a bank. The Central Bank’s action reflects a broader trend of regulators seeking to clarify the distinctions between traditional banks and newer fintech players.
The requirement also applies to groups operating with multiple companies: standardization extends to financial conglomerates, but fintechs that are part of groups with at least one authorized bank can maintain the use of the denomination, provided this is clear in the regulatory structure.
C prohibits the term “bank” for fintechs without a banking license
Photo: Reprodução/ND Mais
According to the Central Bank, standardizing nomenclature reduces the risk of misinterpretation by users and reinforces transparency about which services each institution is authorized to offer.
The decision is part of a package of measures discussed in a public consultation held from February to May of this year, aimed at updating regulation in light of the advancement of fintechs in the national financial system.
Impact on Nubank and Other Fintechs
Nubank is among the companies most closely watched by the market. The company currently holds authorizations to operate as a payment institution, credit society, and securities broker, but not as a bank, according to the Central Bank itself.
This means the “Nubank” brand falls directly within the scope of the new regulation. The company stated it is analyzing the new rules and that services continue to function normally.
Will Nubank change its name? Understand the proposal that could force changes in fintechs
Photo: Nubank/Reprodução/ND Mais
In practice, the decision does not close accounts, cancel cards, or interrupt operations, but may require the group to adjust its brand or how it presents itself to the public if it does not have a banking license compatible with the name used today.
Across the market, the Central Bank estimates that 15 to 20 institutions will need to review their names and domains. This includes fintechs and financial technology companies that have used “bank” and other terms associated with traditional banks as a marketing strategy, even without the corresponding license.
Compliance Timelines and Next Steps
Institutions that do not comply with the new rule will have 120 days to submit a compliance plan to the Central Bank, outlining the planned procedures and implementation schedule.
The maximum timeframe for completing all adjustments will be one year from the date of publication of the rule.
Nubank may have to change its name
Photo: Nubank/Divulgação/ND Mais
According to Gilneu Vivan, Director of Regulation at the Central Bank, the intention is to bring more clarity to consumers and reinforce the security of the financial system, given business models where the name used does not exactly correspond to the authorized service.
The measure also strengthens supervision by aligning how institutions present themselves in the market with the type of authorization they actually possess.
For Nubank users and other fintech customers, the most visible effect is likely to be a potential change in name, logo, or domain – unless the company obtains a banking license that supports the use of terms like “bank” or “bank.”
Day-to-day operations, such as Pix, cards, and investments, are likely to continue normally, provided the institution maintains its existing regulatory authorizations.
With information from Agência Brasil
