Middle-class Brazilians need help surviving the economic and financial storm that has infiltrated the country. Brazil was one of the leading emerging markets three years ago, but it is just a shadow of its former self this year. Brazil’s export business is down, Brazilian currency has lost 30 percent of its value, and inflation is running 10 percent and it is still climbing. Ten years ago inflation was under control and Brazil was exporting goods to China as fast as they could make them available. Brazilians were experiencing a better lifestyle and the credit exposure in relation to the population was around 22 percent. Today the credit exposure is 47 percent.
Eleven years ago, in 2004, Ricardo Guimarães was named President of BMG Bank. BMG Bank had an equity of $325 million when Guimarães took over the bank. In 2010, the bank had an equity of $1.4 billion. Guimarães credits his leadership team and the conservative values that members of his family instilled in him before he took over the bank. The major increase in BMG Bank’s equity came from consignment credit market and the ability of Guimarães and his leadership team. BMG Bank offers clients the cheapest terms in the consignment credit market, and BMG Bank has become a well-known bank with exceptional lending capabilities.
The consignment credit market is still an untapped market in Brazil. Only 50 percent of the market has been tapped by the 60 banks that offer consignment credit. BMG Bank has established itself as one of the leaders in the market, and Guimarães has spent a lot of marketing money letting people know that BMG Bank is the best option for a consignment credit loan.
Some analysts call Guimarães the ultimate marketer because he has spent time, energy and money connecting his bank with Brazilian football, volleyball and basketball. Bank employees wear team colors on certain days in the bank, and Guimarães is always seen talking about or attending football games. And his strategy is working. BMG Bank has an 80% percent consignment credit market share. Guimarães has set up 3,000 points of sale, and he has more than 50,000 agents working in every state to bring in new customers. BMG Bank’s return on investment is 5 percent yearly, and bank bonds are also helping the bank grow equity.
BMG Bank and Mr. Guimarães have been nominated as the best bank to work for and the best CEO in the banking business. He is the member of several company boards and an experienced executive financial officer. The figures prove he is all that and more. BMG Bank expects to be the number one bank in the consignment credit business next year.