The family of Ricardo Guimaraes has successfully operated BMG the almost a century. Since the Mr. Ricardo’s grandfather founded land credit bank, the bank has grown to be the leading consignment credit provider in Brazil. Mr. Ricardo is from Minas Gerais. The son of Flavio Pentagma joined BMG in 1994 and became its president in 1998. The bank has undergone numerous reforms in Guimaraes leadership that have seen it rise to the top in consignment credit sector. His strategies include providing low-interest loans for clients with a non-default record. Guimaraes excellent leadership skills and professional business experience are attributed to BMG success.
The Brazilian business mogul has also invested in another sector like agriculture and cannery. The BMG president has diversified his investment through the major sectors of the country’s economy. Apart from his investments, the bank is also the leading sponsor of the Brazilian sports industry. Guimaraes excellent management skills have come overnight; he graduated with a degree in business administration and worked in several leadership positions before rising to the presidency. He is a vivid philanthropic supporter of community-led projects in Belo Horizonte. Guimaraes believes in teamwork and his team in BMG demonstrates his choice for professionalism and excellence.
Until Guimaraes aggressively invested in consignment sector, the potential of the industry was untapped. The bank now maintains a substantial lead in the industry serving over five million clients in its three thousand point of sales and sixty thousand agents distributed in major municipalities in the country. The business mogul has an eye set in football and athletics. Guimaraes leadership is centered on alternative investment, and the bank has demonstrated the lead in being the biggest sponsor of Brazilian soccer.
Foreign sponsors like Coca-cola have dominated the country’s football sector. The emergence of a local bank in the country to take the lead is remarkable. Thanks to Guimaraes investment diversification that has also made the sports performance improve. The bank is benefiting hugely from the clubs as well. The major clubs in the league have a connection with the bank. Guimaraes commitment in rooting the bank in payroll loans is steadfast. The credit sector is the primary source of revenue for the bank. Guimaraes has plans to reduce the overreliance in of the bank in the industry and diversify in other uncompetitive fields.

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As found on Agencia Estado.

The Rise of the BMG Bank Thanks to Ricardo Guimarães

There are many Brazilian banks for the business owner or individual to choose from. While there are many different financial institutions that you will find to be useful, BMG is one of the top firms. This is why so many people currently living in or around Brazil are utilizing it to their own advantage. The owner of the bank is known as Ricardo Guimarães and he has made it his career and goal to grow the company from the ground up. This has allowed the bank to become one of the largest in the country with millions of people making use of it each and every single day.

Once you realize how large the BMG bank really is, you will want to know a bit more about Ricardo Guimarães himself. Ricardo Guimarães has a deep history rooted in the banking business. He has studied finances and has made it his passion to grow a company that people are going to find to be useful for their own needs. If you feel that you need a high quality bank that is offering a variety of different features, the BMG firm is definitely the one for you and can be a prime choice for anyone who might be involved.

Ricardo Guimarães continues to put features into the bank, making it more and more an option for those who would like to get a bank that they know is the right choice for their finances. The great thing about BMG is that they feature and offer a range of options for both the individual and the common business owner. This enables you to make use of the bank no matter what your financial needs happen to be. You can also visit a local bank or their online site to get a feel for what they are all about.

Consider all of the work that Ricardo Guimarães has put into his company, it is no surprise that millions of people are glad to call this particular bank the one and only financial option that they choose. Whether you need a loan, bank account or would like to apply for a credit card, BMG is there to assist you. The first step to getting started is to go to a local branch. Alternatively, you can go online and set up an account without needing to go anywhere else. Ricardo Guimarães has made it so that all types of people are thoroughly able to use the company and can be glad to call it their one and only bank. The many features available by BMG make it so that you do not necessarily have to go to any other company if you do not want to do this.

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Marcio Alaor’s Overview on Stock Exchange Market

According to Marcio Alaor, an executive at Banco BMG, the automobile industry has been attracting a large number of investors in the stock market. Although the industry is attracting more investors, several scandals have been report on some companies, and their performance are affected. Marcio’s overview of the automakers industry says that the first company to offer IPO in the stock market was General Motors, which is currently estimated at $53.53 billion in market value. In 1956, Ford took the initiative to offer its first IPO. When a company has offered its shares through IPO, means that it has started trading publicly in the stock exchange.
The IPO is an investment strategy used by companies to increase fund and capital investment for their operations. According to Mr. Alaor, investors are targeting IPO of large companies that can guarantee them high rate return on investment. Through IPO, private companies are recognized as corporations, and they are allowed to raise funds from the general public. Alaor gave an example of IPO of Ferrari that led to an increase of 5 percent of its stock, making it to have a fund of $10 billion in market value.
About Marcio Alaor BMG
Marcio Alaor is one of the executive team at BMG Group or Banco BMG. This company is one of the major sponsors of football clubs in Brazil, where it is producing uniforms of op to 39 clubs. Its mark is printed on the back and chest or on the sleeves. The company has also sponsored some volleyball teams, basketball teams like Flamengo, Vitor Belfort fighter just to mention a few. Marcio Alaor is the vice president of bank BMG is a true philanthropist who is recognized in home town city for various projects he has initiated.
Marcio Alaor collaborated with local officials at Santo Antonio do Monte, to help farmers on ways of improving their agriculture production. He thanked all those supporting his initiative and to help local communities improve their livelihood. The objective of funding agricultural projects in his rural area is to make it a food basket where each farmer is earning profit from his or her work. Marcio Alaor was grateful and thanked all those who loved the city and have never lost contact with it, because that shows they are proud of their land.

Source: Exame Magazine

Brazilian Banks Are Using Consignment Credit To Make Money In Tough Times

When the Worker’s Party took office in Brazil in 2003, President Dilma Rousseff promised Brazilians a better way of life. But twelve years later the only people that are making money are the Brazilian banks. In 2003, the four biggest banks made $2.1 billion. Twelve years later their profit is $20 billion. That’s an 850 percent increase. There are several reasons for the dramatic increase in bank profits, but when all the smoke clears, the number one reason is consignment credit.
Brazil’s largest bank, Banco do Brazil, and the country’s third largest bank, Caixa Econômica Federal are government owned banks, so their mandate is not to make a profit, but provide public service, but they make money anyway. Brazil’s privately own banks, Bradesco and Itaú consistently earn a 20 percent return on equity. American banks only earn a 10 percent return on equity.
Return on equity is a money maker in good times and in bad, but according to Ricardo Guimarães, the President of BMG Bank in Minas Gerais, consignment credit is turning the banks into cash cows. BMG Bank is not as big as its competitors, but it makes more money by offering a product called payroll loans to middle-class Brazilians that are working.
Payroll loans give the banks the collateral and the terms they need, and borrowers get lower interest rate. Interest rates in Brazil are as high as 56 percent for individuals and 27 percent for corporations, so anything less than those numbers looks like a gift to borrowers. The Central Bank’s basic interest rate is 14.25 percent, so even though payroll loans come with lower rates the banks are making a fortune.
Guimarães recently said the consignment credit market is a $130 billion market, and only 50 percent of the middle class are taking advantage of the product. In order to keep the money flowing, BMG Bank has more than 3,000 locations around the country and more than 50,000 agents that can execute payroll loans. That internal structure has given BMG Bank an 18 percent share of the consignment credit market.
But Mr. Guimarães doesn’t stop there. He uses Brazilian football to market his payroll loans. Bank employees wear team colors and talk football whenever they can. While they are talking football, they are also talking about payroll loans.
Government backed bonds are also a profit generator for the banks especially when interest rate fluctuate and the currency loses value. That’s what happened this year. Brazilian banks are smart investors. Ricardo Guimarães says banks in Brazil are masters at navigating through economic instability. Because of consignment credit and government bonds, interest rate fluctuations don’t pose a threat to bank profits. The opposite happens, and it has been happening for decades.