Brazil has not only the biggest economy in South America but also one of its most competitive banking industries. Many banks collapse or exit Brazil because of the difficulties of surviving and thriving in such a highly competitive market. However, some have found great success in the Brazilian banking market. One such bank is Banco BMG. Founded in 1930 by the Guimaraes family, Banco BMG has over the course of the past 85 years distinguished itself as one of the most respected and successful mid-sized banks in Brazil. What has been its secret for such success and longevity? Here is a look at three key factors that have made Banco BMG the successful bank that it is today.
Banco BMG history and policies reveal a keen appreciation of the importance of innovative products and great customer service for any bank’s success. These two objectives cannot be achieved without talented and motivated employees. Thanks to the bank’s culture of meritocracy and a framework through which talent is recognized and rewarded, Banco BMG has been able to attract and retain very talented employees whose innovations and work-place efficiency have fueled its success over the years. One such individual is the bank’s Director and Vice President, Marcio Alaor, whose reign has seen an unprecedented success for the bank.
Conservative Credit Policy
Most Brazilian banks fail or underperform not only because of poor management but also because of a high number of loan defaults. Banco BMG avoids such undesirable outcomes by strictly focusing on quality over quantity. Before a credit is advanced to any individual or institution, the bank’s credit team carries out a detailed analysis of the borrower’s financial position and history and a final decision arrived at in a joint forum. In this manner, the bank has been able to maintain a very high quality credit portfolio and avoid unnecessary loss of money.
Banco BMG might be risk-averse in its credit policy but when it comes to financial products it maintains a strong, innovative spirit. For instance, it was the first Brazilian bank to offer payroll loans not only to public employees but also to pensioners. It was also the first to offer payroll credit cards in Brazil. In fact, such has been the success of Banco BMG’s innovations that other banks use its systems and platforms as the market’s benchmark. Thanks to its many innovative products, Banco BMG has been able to increase its customer base and offer highly efficient services to its customers.
As the factors above show, the success and longevity of Banco BMG have not been accidental but a result of proper implementation of well thought-out and bold policies. With Marcio Alaor’s retention of these policies, Banco BMG is likely to continue its successful streak in the coming years.
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