BMG Bank Shines In Spite Of The Brazilian Debt Downgrade

Two of the three rating agencies have downgraded Brazil’s debt rating to junk status over the last four months. Unemployment is more than 10 percent, and it may go to 12 percent when all the figures are calculated. Inflation is pushing 12 percent, and the political situation is in turmoil, and that is putting it mildly. President Dilma Rousseff is fighting for her political life. Some experts say she may not make it through the first quarter of 2016.
But in spite of all those issues, BMG Bank is thriving. BMG Bank recently moved its headquarters to Sao Paulo in order to handle the growth the bank has experienced over the last 15 years. BMG Bank has been giving loans to people and businesses for the last eight decades thanks to one family that believes good banking starts with treating people fairly. The Guimarães family has kept control of the bank since the beginning, and there’s no signs that the family is going to give up control now.
BMG Bank is one of the leaders in the consignment credit business. Ricardo Guimarães, the president of BMG and Vice-President Marcio Alaor, have things at the bank under control, according to several articles published by R7.com. Marcio Alaor is also the director of the bank and under his leadership, the bank has had a dramatic growth spurt. A recent merger with Itaú Unibanco and two mergers with other banks are all products of Alaor’s banking prowess.
Most of the banks in Brazil play it safe when it comes to spending money on marketing, but President Guimarães and Director Alaor decided that in order to make money they had to spent it, and they chose sports as the vehicle for that spending. BMG Bank sponsors football players as well as tennis and volleyball players. The bank’s most recent addition to the sponsorship program is tennis great Marcello Mello. Mello is ranked number one on the professional doubles circuit, and he wears the orange BMG logo on his tennis shirt when he is on the court.
Mello is preparing for the Olympics, so BMG Bank will get a lot of exposure in 2016 for that sponsorship. The Olympic Games start in August, but Mello will be in the spotlight all next year because of his ranking. The main reason Alaor likes the Mello sponsorship is he fan base is different than the football fan base. Mello’s fans are better educated, earn more and will spend more and that is the kind of clients BMG Bank wants.
Alaor and Guimarães have a solid client base now. Those clients continue to apply for loans, but in banking like any other business, there is always more to achieve.

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