Carlos Braziel David | FinTech Magazine

Universo has been able to succeed with a different approach to banking in Portugal. This is achieved by being “different”. But what does it mean to be different? From our conversation, we understand that many things make Universo different, starting with the strong will to be “different”.

But there is much more: a broad ambition and challenging culture inherited from the Sonae DNA; the ability to combine digital and physical worlds; the capacity to create and exploit ecosystems, the nerve to try new technologies and new companies as partners (Universo started cloud-native already in 2015; and was one of the first customers of emerging companies at the time, such as Mambu or Mastercard Processing Europe) . The use of AI at its core and seeing itself as a technology company are some of the clues to understanding “who” Universo is.

Universo: the background

As a multinational company that manages a broad portfolio of companies in retail, telecommunications, financial services, technology and real estate, Portugal-based Sonae’s solid culture and highly developed ability to innovate and execute its actions take the benefits of progress to an ever-increasing number of people . It is a major employer in Portugal with a global customer base and a wide range of conscious focus, including impressive sustainability commitments and a focus on conscious practices.

The creation of Universo was part of Sonae’s innovation policy that looks to challenge an industry while fulfilling Sonae’s mission to bring the benefits of progress and innovation to a growing number of Portuguese families.

Universo: Financial accessibility for all

Sonae’s portfolio includes the Universo brand, a financial institution focused on the B2C segment, offering accounts, payments, cards, credit (lines of credit, in-store credit, BNPL,…), personal loans, insurance and investments. Founded 7 years ago, the company has more than one million customers and over 1 billion euros in annual production generated across its financial offerings.

Universo integrates Sonae retail loyalty programs to reach a broad base of Portuguese families. Universo combines the Continente Loyalty program and the Worten Resolve program to deliver a wide range of benefits to its customers.

“Continente loyalty program – which is the largest loyalty program in Portugal – gives Universo an important differentiation opportunity” explains Carlos Braziel David, Chief Operating Officer of Sonae Universo. “The refund is provided by this program, which includes major brands in Portugal, from Continente (grocery), to Galp (petrol), Zippy and Mo (fashion) as well as Burger King or Pizza Hut, to name a few”

Universo: Why is it different?

Universo is different from neo-banks not only because of its large partner ecosystem and related loyalty benefits, but because it innovated in payments and credit options.

The biggest innovation was offering timed credit options (3, 6 and 12 instalments), interest-free options and fixed-amount payment options on the credit cards and online. In 2016, at the start of Universo, this proved to be much appreciated by customers and an important driving force for growth.

“As for the growth of Universo, I would divide it into two different time periods,” says Braziel David. “In the first phase, Universo focused on expanding the accounts and payments. This was done together with Mastercard Portugal with a ground-breaking project designed by the team from Data & Services with scheme and Mastercard Processing Europe (MPE), which helped us innovate in the payment options which is offered In fact, Universo was the pioneer to offer a Mastercard card issued from Portugal.

“The second period was focused on developing and internalizing the credit generated by our products. Mambu is a key partner in making it possible, as well as Deloitte, who helped us build the operational model”.

“Truly, Universo is completely cloud-based since its inception and built a network of delivery partners that adopt a SaaS (Software-as-a-Service) model, partners like Mambu or MPE to name two of the most important.”

“We believe that being cloud-based and working with partners in SaaS enables Universo to scale its business, in terms of customers, offerings and geography.”

“This delivery model also allows our team to focus on the most important assets for growth, that is to focus on our customers, our offering, our brand, our people and on our key capabilities. For example, artificial intelligence competencies are kept in-house, in a large and highly skilled team, which is at our core and makes a major contribution to our success.”

Finally, Universo is also different when it comes to combining digital and physical realities. “Universo’s main focus has been a quick and fast customer registration, using point of sale combined with digital channels”, says Braziel David. “As we have an established relationship with retailers, it was our plan – and it is our approach – to use commercial points of sale that enable a light physical presence. Thus, we are primarily digital, but we are also physically present, which is greatly appreciated by our customers and partners. This combination works and makes Universo different from other players.”

Partnership at the heart of Universo’s development

Within the Universo Sonae ecosystem, partnerships are nurtured and valued. “Mastercard is a partner that supported Universo from the beginning and was fully aligned with Universo’s innovative approach,” says Braziel David, along with “Mastercard Processing Europe (MPE), which promoted innovation in credit options offered on Universo, among other functions”

Mastercard is a global leader in payments and has developed collaboration models with players such as Sonae to bring innovation into the industry. Indeed, Mastercard has been focused on modernizing the payment ecosystem and creating stronger bonds between people through technology. Through its innovative approach and commitment to customer collaboration, Mastercard has established itself as a leader in the payments industry and a partner for businesses that want to transform their transactions.

Mastercard Processing Europe (MPE) is one of the fastest growing issuer processors in the region with operations in 33 markets (32 EEA and Israel). The company offers a comprehensive range of payment solutions that enable customers to launch payment products with efficiency, scalability and speed to market. MPE flexible solution leverages powerful APIs for platform integration, focusing on digital use cases that enable instant issuance of virtual cards and more. MPE’s services offer access to the latest technologies and utilize state-of-the-art security at the forefront.

The third key partner for Universo at this stage is Mambu, which Braziel David refers to as “the SaaS partner for the Credit platform, a successful Fintech provider of core credit systems.”

Mambu is a cloud-based, API-driven banking and financial services platform that offers its customers software-as-a-service (SaaS) solutions. The company’s primary goal is to enable financial innovation and help customers bring their solutions to market faster, while reducing cost barriers and expanding ecosystems.

The company has an extensive client list, including fintech startups, telcos and top-tier banks. With a presence on six continents, Mambu helps its clients transform how financial institutions operate and innovate. As a leader in cloud banking and fintech, Mambu takes on the $250 billion global banking technology market, serving over 250 clients with more than 90 million end users.

Universo has partnered with Deloitte to develop the operational model for credit and risk. “Together with Deloitte, we are setting up Universo’s risk, credit and collection business,” says Braziel David.

Deloitte is a key Mambu partner, with specific expertise in helping Fintechs and banks deliver core transformation programmes.

“I would say that together with Mastercard and Mastercard Processing Europe for the payments – with Mambu and Deloitte for the setup of credit and risk areas – we can fulfill this second phase of Universo in the entire credit value chain.”

Preparing for the future

Sonae recently announced a preliminary agreement with Bankinter Consumer to create a joint venture that will take Universo to the next stage.

The joint venture will combine Sonae’s Universo businesses with Bankinter Consumer Finance in Portugal, which manages Bankinter’s Portuguese consumer credit products and services.

The agreement establishes the main terms for creating a leading consumer credit operator in Portugal with Sonae and Bankinter Consumer Finance as shareholders.

Sonae’s CFO, João Dolores, says: “Over the past years, Universo has consolidated its position as a reference operator in the Portuguese financial services market, leveraging its digital structure and helping to strengthen the performance of the group’s businesses, in addition to the ecosystem of partners The preliminary agreement now signed with Bankinter aims to seize this successful path to establish a leading consumer credit operator in Portugal.

Both shareholders have ambitions to grow internationally and take some of the features that made them successful to other countries.

When asked about internationalization, Braziel David says “what Universo has built can be exploited in other markets”. Not just the technical solution and related partnership ecosystem, but also AI, Risk and other core competencies that are critical to this business.”

– We naturally know that each market is different, and the business model must be adapted. Yet our success has been driven by our teams, by our people, who will succeed in other markets if challenged.

Also, Braziel David says “Universo’s success has been driven by a challenging mindset, with a very clear purpose and distinctive culture. Our challenge is to find business models that work and cannot be easily replicated – creating an ‘unfair advantage’. We made it a time. We expect to continue that.”

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