Mercado Pago’s credit portfolio reached about $16 billion in the second quarter, up 75% year on year, as its credit-card book expanded 91% to $7.7 billion. In Mexico, Nu began operating as a fully licensed bank with more than 15 million customers, giving it greater scope to deepen deposit, payment and credit relationships.

Beyond Latin America, Revolut secured a French banking licence, establishing a second major European Union banking base alongside Lithuania. Rakuten Bank grew deposits faster than customer accounts as its parent reported stronger fintech earnings, while mortgage applications weakened across CBA, Westpac and NAB.

Read more on the week’s key developments:

1. MercadoLibre expands Mercado Pago credit portfolio 75% to $16 billion

Uruguay-headquartered MercadoLibre reported on 5 August that Mercado Pago’s credit portfolio reached about $16 billion in the second quarter, up 75% year on year, with its credit-card book rising 91% to $7.7 billion. Customers active across both commerce and fintech increased 37%, while acquiring payment volume grew 42% on a foreign-exchange-neutral basis. Group revenue rose 50% to a record $10.2 billion, although net income declined 11% to $466 million.

The results show Mercado Pago deepening its role as MercadoLibre’s retail financial arm, with credit growing faster than the wider business. Early-stage delinquency indicators improved sequentially, while longer-dated arrears increased as the rapidly expanding credit-card portfolio seasoned. With lending growing well ahead of group revenue, asset quality and funding costs will determine whether the expansion produces durable earnings.

2. Revolut secures French banking licence to build second EU banking hub

UK digital bank Revolut secured a French banking licence on 10 August from France’s ACPR and the European Central Bank, creating a second EU banking hub alongside Lithuania. French customers will migrate to the new entity first, followed by customers in Germany, Ireland, Italy, Portugal and Spain. Revolut, which has more than 75 million customers globally, plans to invest EUR 1 billion ($1.16 billion) in France and hire more than 600 people across Western Europe.

The licence gives Revolut greater scope to tailor mortgages, lending and regulated savings to individual Western European markets while retaining Lithuania as its other EU banking base. The strategic value will depend on how quickly it migrates customers and secures approval for local products, particularly as regulators have previously required stronger product-approval, governance and risk controls at its Lithuanian entity.

3. Nu México begins operating as fully licensed bank with more than 15 million customers

Brazil-founded Nubank’s Mexican operation began operating as a bank on 6 August, after the CNBV granted final authorisation on 9 July and Nu announced it the following day. Nu México serves more than 15 million customers, about 15% of Mexico’s adult population, making it the country’s largest digital bank by customers. The migration from its SOFIPO structure was completed without disrupting debit or credit-card use.

Bank status raises deposit protection from 25,000 UDIs, approximately MXN 220,000 ($12,800), under the SOFIPO regime to 400,000 UDIs, approximately MXN 3.5 million ($205,000), under Mexico’s bank deposit-insurance framework. Combined with a planned $4.2 billion investment in Mexico through 2030, the move gives Nu greater capacity to deepen deposit, payments and credit relationships under full bank regulation.

4. Rakuten Bank reaches 18.46 million accounts as fintech operating profit rises 60%

Japan’s Rakuten Group reported on 10 August that second-quarter fintech revenue increased 27% year on year to JPY 295.4 billion ($1.87 billion), while non-GAAP operating income rose 60.1% to JPY 69.2 billion ($439 million). Rakuten Bank reached 18.46 million accounts, up 8.1%, while deposits increased 13.9% to JPY 13.3 trillion ($84.3 billion). Rakuten Card shopping transaction value grew 9.4% to JPY 7.1 trillion ($45.0 billion).

The results show Rakuten converting ecosystem scale into broader financial engagement and stronger earnings. Deposits grew faster than bank accounts, indicating that Rakuten Bank is capturing larger balances as its customer base expands. Higher fintech profit points to stronger monetisation across banking, cards and securities, while the integrated model gives Rakuten greater scope to cross-sell products across its existing digital customer base. The results do not, however, establish whether Rakuten Bank is becoming the primary bank for those customers.

5. Brazil’s PagBank expands credit portfolio 31% as deposits reach BRL 43 billion ($8.31 billion)

Brazilian digital bank PagBank reported on 11 August that its credit portfolio reached BRL 5.1 billion ($986 million), up 31% year on year, while deposits rose 15% to BRL 43 billion ($8.31 billion). Recurring net income increased 2% to BRL 576 million ($111 million), while total payment volume reached BRL 133 billion ($25.7 billion). Cash-in, or inflows not related to acquiring, rose 23% to BRL 97 billion ($18.7 billion), and PagBank ended the quarter with 34.1 million customers.

The results show stronger customer activity alongside still-rapid but moderating balance-sheet growth. Credit expanded 31%, but growth slowed from the previous quarter while recurring net income increased only 2%. Working-capital and credit-card lending remain among the fastest-growing products, while over-90-day delinquencies rose to 3.4%, from 3.05% in the previous quarter. The issue is whether stronger engagement can translate into faster earnings growth without increasing asset-quality pressure.

6. CBA mortgage applications fall 15% as demand weakens across three major Australian banks

CBA’s full-year results showed new home-loan applications had fallen 15% since May, with investor applications down 28%. The slowdown was also evident at Westpac, where applications declined about 20% after the May federal budget, including 26% among investors. NAB reported a 15% quarter-on-quarter decline in applications for the June quarter, although the three banks measured changes over different periods.

CBA provides the latest evidence of weaker new mortgage demand at three of Australia’s major banks, with investors recording the sharpest declines. The slowdown followed higher borrowing costs and changes to negative gearing and capital-gains-tax treatment. If it persists, slower new lending could intensify competition for borrowers, even as existing mortgage books and asset quality remain resilient.

7. US fintech Block grows Cash App gross profit 31% as consumer lending expands

US fintech Block reported on 5 August that Cash App’s second-quarter gross profit increased 31% year on year as customers made greater use of its consumer financial services. Block raised its 2026 gross-profit forecast to $12.51 billion, while adjusted operating margin improved to 27% from 22%. Quarterly revenue reached $6.62 billion, and consumer-lending originations increased 59%.

The results show Cash App moving further towards a broader financial relationship with customers, with lending becoming a larger source of monetisation alongside payments and paycheck inflows. The expansion of Borrow supports higher customer value but also increases exposure to credit performance as the product scales. Deeper direct-deposit and everyday banking engagement will determine whether Cash App can broaden growth beyond lending as comparisons become tougher in the second half.

8. US regulator blocks Dutch digital bank bunq’s retail banking expansion

Dutch digital bank bunq said on 7 August that the US Office of the Comptroller of the Currency rejected its application for a national bank charter, delaying its planned US retail expansion. The OCC raised concerns around capital planning, compliance, management experience with unsecured credit cards and the proposed bank’s ability to operate safely and profitably. bunq, which has more than 20 million users in Europe, said it would address the issues and continue pursuing a US presence.

The rejection adds to scrutiny of foreign fintechs seeking US charters, following the OCC’s July denial of Wise’s application. The two cases are different: bunq sought a national bank charter for a broader retail-banking model, while Wise sought a national trust bank charter linked largely to payments infrastructure and Federal Reserve access. Both show that international digital scale does not substitute for US-specific governance, compliance and operating capabilities.

9. India’s Slice quarterly profit tops FY26 as deposits nearly double

India’s digital-first Slice Small Finance Bank reported on 11 August that net profit reached INR 50.9 crore ($5.33 million) in the June quarter, exceeding the INR 48.4 crore ($5.07 million) earned in all of FY2026. Deposits nearly doubled year on year to INR 5,765 crore ($604 million), while the gross loan book grew about 55% to INR 5,098 crore ($534 million). Gross NPA declined to 4.36% from 6.31% and net NPA to 3.24% from 4.66%.

The results show Slice scaling while strengthening its funding profile, with deposit growth outpacing lending and reported NPA ratios declining. One quarter, however, is insufficient to establish a sustained improvement in asset quality, while gross NPA remains elevated at 4.36%. The available disclosure does not show how much of the decline reflects recoveries, write-offs or rapid loan-book growth. Slice has also yet to disclose active-user growth or products per customer, leaving limited evidence on whether its fintech origins are translating into deeper retail relationships.

10. TBC Uzbekistan renews retail growth through cards, BNPL and point-of-sale lending

UK-listed TBC Bank Group’s first-half results, released on 6 August, showed renewed consumer growth at TBC Uzbekistan following its loan-book recalibration. The digital banking ecosystem is broadening retail lending across cards, buy now, pay later and point-of-sale financing through TBC Bank and Payme. TBC Group serves 7.2 million digital monthly active users across Georgia and Uzbekistan.

The diversification is partly a response to regulation, with Uzbekistan applying higher risk weights when microloans or credit cards and overdrafts exceed specified shares of a bank’s portfolio, starting at a 25% concentration threshold from July 2026. This is encouraging TBC to spread growth across a broader mix of retail products instead of relying heavily on cash lending. With TBC Uzbekistan’s non-performing loan ratio at 10.6% and its cost of risk expected to peak in the third quarter, renewed growth will depend on reshaping the portfolio without adding further credit pressure.

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