Banco Santander (Brasil) Profile
Banco Santander (Brasil) S.A. (Santander Brasil) provides commercial banking products and services to individuals, small and medium enterprises (SMEs), and large corporate customers in Brazil.
Segments
The company operates through two segments, Commercial Banking and Global Wholesale Banking. As of December 31, 2021, the company served 30 million active customers.
Commercial Banking segment
This segment provides services and products to individuals and companies (except for global corporate customers who are managed by the company’s Global Wholesale Banking). The revenue from this segment is derived from the banking and financial products and services available to its account and non-account holders.
Retail Banking
Individuals: The company has structured this customer service segment as follows:
Private Banking is responsible for select group of customers with at least R$5.0 million in assets available for investment. In this segment, the company offers a portfolio of financial products and services, investment advice, loans and asset management through a dedicated manager for investments and banking services.
Santander Select is responsible for customers with a monthly income above R$10,000, and R$30,000 in investments, or more than R$100,000 in investments.
Santander Van Gogh is responsible for customers with a monthly income ranging from R$4,000 to R$10,000, or with investments above R$40,000.
Santander Especial is responsible for customers who earn up to R$4,000 per month.
SMEs: The company serves SMEs under the Santander Negócios e Empresas brand, under the following segmentation:
Empresas 3 Núcleos (Core Companies) is responsible for companies with annual revenues between R$30 million and R$200 million. The company also provides specialized services to multinational companies and other major corporations in order to meet their specific needs.
Empresas 2 Polo (Hub Companies) is responsible for companies with annual revenues of between R$3 million and R$30 million. The company offers these customers a range of products and services in a user-friendly interface.
Empresas 1 Agência (Branch Businesses) is responsible for companies with annual revenues of up to R$3 million. The company offers these customers a simple banking solution through an integrated account that combines a corporate account with a point of sale (POS) terminal hosted by Getnet Adquirência e Serviços para Meios de Pagamentos S.A. (Getnet). Through this arrangement, its customers receive benefits for using the Getnet solution to process their credit card sales, with receipts being posted to a Santander Brasil checking account.
Negócios Direct is for companies with annual revenues of up to R$300 thousand. The company offers these customers direct access to a relationship manager who is available during extended service hours and via remote channels, such as telephone, e-mail or chat, as well as access to digital channels that facilitate the client’s day to day needs.
Empresas MEI (Individual Microentrepreneur) is responsible for companies with annual revenues up to R$81 thousand. The company offers these customers an option through its Santander Conta MEI, a remote service, and digital solutions, such as Gent& Santander – the artificial intelligence solution for service and sales.
Consumer Finance
The company provides consumer credit to finance motor vehicles, goods and services directly or through intermediate agencies. Santander Financiamentos is the company’s main service channel but it also operates under multiple brands.
Corporate
The company’s corporate banking segment aims to be the main distribution channel of the Santander Group to Brazilian and foreign and/or multinational corporate clients. The product offering ranges from simple cash accounts to mergers and acquisitions advisory services. The company leverages its strength in consumer finance, asset and wealth management, payments and markets to serve its clients and their shareholders, employees, clients and suppliers. The company serve companies with annual gross revenues in excess of than R$200 million located across Brazil by physical and digital channels. Its corporate banking segment has been constantly evolving as a segment relying on a disciplined analytical toolkit, consistent communication and workforce upskilling.
Global Wholesale Banking segment
This segment offers a range of national and international tailored financial services and structured solutions for its corporate customers worldwide, primarily local and multinational corporations.
Santander Corporate and Investment Banking (SCIB)
SCIB is the worldwide business unit that serves customers, who, due to their size and complexity, require tailored services or high-value-added wholesale products. In this segment, the company provides a range of domestic and international financial services to major Brazilian and multinational companies. Its customer portfolio includes a range of industries, including telecommunications, retail, aviation, real estate and logistics, power, construction and infrastructure, natural resources, food, agribusiness and financial institutions.
The company’s customers in the SCIB segment benefit from the structure of services supported by the company with its worldwide-integrated wholesale banking network and global services solutions, as well as local market expertise and provision of integrated services.
Portfolio of Products and Services
Payments
Credit and Debit Cards: The company operates in the credit and debit card market by issuing these products to its customers (including both account and non-account holders), with the majority of customers being individuals.
Santander Way: Santander Way is an app offered to the company’s cardholders that allows them to manage their Santander Brasil cards at any time. This payment platform also works as a digital wallet, enabling customers to conduct contactless payments. Some of the major features launched in 2021 included: extra loan and installment offers; virtual cards that allow purchases before the physical card arrives; functions for safer online purchases without a physical card; possibility for the customer to update his or her income to obtain a higher credit limit; and chargeback from unrecognized purchases. In 2021, the company had nine million active customers using Santander Way.
Esfera: Esfera is the company’s loyalty program, which could be accessed through a website and mobile app. Its loyalty program enables holders of credit cards issued by the company to exchange their reward points for various products, services and travel benefits, including exclusive deals and discounts with partners, such as some of Brazil’s largest retailers and a cinema chain, among others. Esfera also operates a marketplace offering cashback to is clients on purchases of products that aggregate more than sixty partners as of December 31, 2021.
BEN Benefícios e Serviços S.A. (BEN): BEN is an employee benefits company that provides purchasing power and quality of life to its users by creating, supplying and managing various types of employee benefit vouchers (meals, such as Vale Alimentação and Vale Refeição, as well as transportation) in the form of magnetic cards. These benefits are offered through an integrated digital platform.
Payroll Loans
Payroll loans support both account and non-account holders in the execution of projects and financial organization. Under these loans, monthly installments are deducted directly from the borrowers’ paychecks by their own employers, and then credited to the company, significantly reducing its credit risk. The company offers these payroll loans to its customers through its mobile banking platform and the company’s branches. Its customers can refinance their payroll loans, as well as choose from other options to help them manage their debts. Furthermore, these loans are also offered to non-account holders through Banco Olé Bonsucesso Consignado S.A. (Olé Consignado).
SIM
SIM is a digital lending platform for individuals through which customers could apply, and be approved, for a loan completely online.
emDia
emDia is an online debt renegotiation platform. It provides customers with a platform to access debt renegotiation services on a 24/7 basis. As of December 31, 2021, emDia had 6.5 million customers and had contributed to the recovery of R$78 million in credit volume in 2021.
Mortgages
The company offers long-term financing to its customers for real estate purchases, secured by deeds of trust. The company considers mortgages to be a strategic product due to their lower risk (since the acquired property serves as collateral) and their ability to increase its customer loyalty (especially since the company offers customers more attractive rates if they choose to bank with it). In this market, the company’s customers, and those of its competitors, are primarily individuals.
Home Equity
In the company’s portfolio of loan products, it also offers a ‘home equity’ financing product called ‘UseCasa’, in which clients could receive a loan if they provide real estate as collateral. This product enables clients to access financing to pursue their personal objectives. To facilitate the process, customers could obtain home equity loans online through its real estate digital platform. When using this option, customers only need to be physically present when signing the contract and also when returning it once it is duly registered.
Tailored Products and Services
The company has a complete set of services and products worldwide. It has a portfolio that ranges from basic to tailor-made and complex solutions in the following areas:
Global Transaction Banking, which includes the sale and management of local and global transactional banking products, such as local loans, commercial finance (confirming), transfers of Banco Nacional de Desenvolvimento EconÔmico e Social (BNDES) onlending, trade finance, guarantees, structured loans, cash management solutions and funding from international banks.
Global Transactional Services, which is responsible for sales and management of global transactional banking, trade finance, guarantees, structured loans, and funding from international banks.
Global Debt Financing, which includes funding and financial advisory services related to projects, origination and distribution of fixed-income securities in the debt capital markets (DCM), financing of acquisitions and syndicated loans, other structured financing arrangements, subordinated debt and energy efficiency transactions.
Investment Banking, which includes advisory services in mergers and acquisitions (M&A) and equity capital markets transactions, including initial public offering and follow-on offerings.
Equities, which includes stock brokerage and advisory services, equity services for individuals, corporate and financial institutional investors in stocks, derivatives, and equity research.
Treasury Customers, which is responsible for structuring and offering foreign exchange, derivative and investment products for customers from various segments of the company, including institutional investors, corporate and retail customers.
Market Making, which is responsible for the pricing of customer deals originated by its sales force from corporate, institutional, private banking and retail segments. This department also conducts its proprietary trading activities.
Customer Solutions
Santander SX
Agribusiness
The company provides a range of products and services focused on the agribusiness sector. It serves customers through a network of physical stores and digital solutions.
Microfinance
Prospera Santander Microfinance is the major microcredit-oriented operation among privately owned banks in Brazil, based on market share and portfolio value. It focuses on providing services to support formal and informal microentrepreneurs by generating business and income. With a 100% digitalized service process, in addition to products intended to improve business management skills, it has customers who hire the company for services previously not available to them, because they do otherwise have access to financial services, such as property finance, consortium and investment services.
Webmotors S.A. (Webmotors)
Webmotors is the Brazilian technology company focused on automotive purchase and sale solutions for dealers, original equipment manufacturers and private sellers, holding the online automotive classified in Brazil.
Webmotors received an average of more than 30 million visits per month in 2021. Through the Cockpit, a platform for car dealers, which combines solutions for the entire chain, the company offers various solutions, such as business management/performance, buyer profile (Customer Relationship Management), data intelligence, predictive pricing models and market data (AutoGuru).
Webmotors endeavors to be a platform that accompanies private and corporate users throughout the life of their vehicle, from purchase, to use and sale. Webmotors reformulated the business of its subsidiary Loop Gestão de Pátios S.A. (Loop), which was a traditional auctioning business, into an omnichannel dealer which is able to increase the sale value of demobilized fleets in its digital and physical stores. Webmotors also launched ‘Agenda Fácil’, a product focused on scheduling services through WhatsApp.
Santander Auto (Santander Auto S.A.)
In 2019, the company launched Santander Auto, a fully digital car insurance solution, which relies on the use of big data analytics for pricing.
Solution 4 Fleet Consultoria Empresarial Ltda (Solution4fleet)
In 2021, the company acquired Solution4fleet, a company specialized in leasing vehicles to third parties. Solution4fleet offers services, such as assistance, fleet management, inspection, vehicle maintenance and fine management. It has a complete ecosystem for fleet management and leasing operations.
Car10
The company also acquired Car10, a company which provides a marketplace to simplify auto repair shops and services with over 7,000 registered garages across Brazil.
+ Negócios and + Vezes
In 2017, the company launched + Negócios, a digital trading platform, which enables execution of loan simulations, receipt of credit approval and proposal formalization for vehicles, in addition to providing portfolio management reports. In the same year, it also introduced ‘+Vezes’, a digital trading platform allowing retailers to offer installment payment options for the sale of goods and services.
In 2021, approximately 15 million separate Brazilian individual taxpayer identification numbers were used to simulate vehicle leasing through the ‘+Negocios’ platform, which makes it the most widely used platform in Brazil’s vehicle leasing market.
+Vezes has a strong focus on digital channels. With the use of +Vezes website, two editions of ‘Decora +’ and ‘Energia +’ has been launched, both focuses on the development of digital showcases to bring main resellers closer to the end customers, mostly on the furniture and photovoltaic segments. Additionally, Crédito Pessoal +Vezes has also been launched, which is a complementary offer of credit for end customers in their checking account, without a specifically required purpose. The company has also advanced multiplying +Vezes presence and service throughout the national territory for the implementation of the CONSULTANT + Model, strengthening the relationship with intermediary customers.
Moreover, “+Fidelidade” is a loyalty program with the objective of offering incentives to agents based on their relationship with Santander Brasil and Webmotors. Accordingly, the company has sought to improve the customer’s post-sales experience by implementing several features on +Fidelidade’s online portal.
Cash Management
The company offers cash management solutions to corporate customers and SMEs online through its Internet banking and mobile banking services.
Customer Funding
The company’s major sources of liquidity are customer funding through deposits and other bank funding instruments.
Programa Avançar
The company also has a non-financial solution, known as ‘Programa Avançar’, which is aimed at entrepreneurial customers. Through this solution, SMEs could access content and solutions related to management and innovation, internationalization, team building, and other topics relevant to businesses through a web platform. The company sees this program as a key component of its offering to Brazilian entrepreneurs. In addition, the company offers a digital account solution, where individual entrepreneurs can purchase banking products and services in a 100% digital experience. Similarly, it offers ‘Santander Copiloto’, an enterprise resource planning tool designed for its SME customers. This tool is integrated with the Santander Digital channels, and provides solutions, such as e-commerce, sales point software and tax compliance.
Service Channels
The company offers its financial services and products to its customers through its multichannel distribution network, including physical channels, such as branches, mini-branches (Postos de Atendimento Bancário (PABs)) and automatic teller machines (ATMs); call centers; and digital channels, such as Internet banking and mobile banking.
Physical Distribution Network
The company’s distribution network provides integrated financial services and products to its customers.
Branch Network: The company’s branch network offers its customers a portfolio of products and services with personal and customized customer service.
PABs: The company offers daily banking services to its SMEs, as well as corporate customers and their employees through its PABs, which are exclusive sales points located at its customers’ buildings, as well as in hospitals and universities. The presence of PABs in the company’s customers’ offices strengthens its relationship and builds loyalty with those customers, who benefit from the convenience of conducting their banking transactions at their workplace.
ATMs: The company operates a network of ATMs, including those located in the company’s branches and mini-branches. In addition, its customers have access to the ‘Banco24Horas’ network, which operates ATM units. Through this network, its customers are able to access their accounts and conduct banking transactions, as well as purchase majority of the products and services available in its portfolio.
Remote Channel
The company’s remote channel consists of call centers, online messaging services and contact emails available to all the company’s customers. These allow customers to solve issues, engage new products and services and generally interact with it to fulfil their banking requirements. The company received over 25 million contacts per month through its remote channel in the year ended December 31, 2021.
In, the company began a process to reshape the way in which it interacts with customers through its remote channel. In 2021, this transformation allowed the company to achieve more than 740,000 sales in December 31, 2021.
Digital Channels
The company’s digital channels include Internet banking, mobile banking and other digital solutions aimed at facilitating its customers’ access to the products and services that it offers.
Securities
As of December 31, 2021, the company’s securities included government debt securities and private-sector debt securities.
Patents
The major trademarks the company uses, including among others, the ‘Santander’ trademark, are owned by Santander Investment Bank. The company has a license to use this trademark. All trademarks of its business are registered or applied through the Brazilian Patent and Trademark Office (Instituto Nacional de Propriedade Industrial, or INPI), the agency responsible for registering trademarks, patents and designs in Brazil. After registration, the owner has exclusive rights to use of the trademark in Brazil for a 10-year period that could be renewed for equal periods.
As of December 31, 2021, the company owned a total of 568 trademarks in Brazil, with the company owned over 117 of these trademarks, while the remaining are owned by other companies of the Santander Group.
Regulation
The company, as a foreign private issuer whose securities are registered under the Securities Exchange Act of 1934 (the Exchange Act), is subject to the U.S. Foreign Corrupt Practices Act (FCPA).
Furthermore, the company is subject to various the U.S. anti-money laundering (AML) and anti-terrorist financing laws and regulations, such as the Bank Secrecy Act of 1970, as amended, and the USA Patriot Act of 2001, as amended.
History
Banco Santander (Brasil) S.A. was incorporated under Brazilian law in 1985.
