The finding that certain somatic cells can be directly converted into cells of other lineages by the delivery of specific sets of transcription factors paves the way to novel therapeutic applications. This process is also known reprogramming by direct conversion, because a cell from a specific lineage (ex. cord blood) changes its internal program to become a cell from a different lineage (ex. neurons). Here we show that a specific subset of human cord blood cells can be converted into neuronal cells by the expression of a plutipotent transcription factor called Sox2. This process is further augmented by the addition of another factor called c-Myc. Gene-expression and electrophysiological analysis show that the converted cells acquire a distinct neuronal fate characterized by the expression of multiple neuronal markers. Converted cells show the ability to fire action potentials after in vitro maturation as well as after in vivo transplantation into the mouse hippocampus. This system highlights the potential of human cord blood cells and offers alternative means to the study of cellular plasticity, possibly in the context of drug screening research and of future cell-replacement therapies.