Nubank Is Not a Bank, Despite Its Name — and That’s a Problem

Nubank needs to solve an identity crisis of sorts: Despite its name, it’s not a bank at all.

At least not in Brazil, where regulators have taken aim at the nation’s largest fintech. New rules approved in November forbid the use of “bank” in a brand unless the company holds a banking license, which Nubank does not.

And so the company is on the hunt for an acquisition, looking for a small bank that already has a license in Brazil, according to a person familiar with the matter. Finding one that also has accumulated losses would offer added tax benefits, ...