BMG: The Brazilian Financial Guru

BMG is one of the Brazilian privately owned financial institution that has a rich history dating back to 1930s. The Pentagna Guimaraes family controlled the financial firm since its inception as Banco de Credito Predial S.A being a commercial bank offering its services to both individuals and institution. The company later rebranded to Branco de Minas Gerais S.A.

Before the mid-1990s, BMG primarily focused on wholesale and consumer financing. BMG’s effort in the areas of specialization were fruitful as they became the market leader in the funding of cumbersome and light vehicles in the 1980s. After 1998, there was a shift of the concentration as they decided to venture in the provision of payroll loans in Brazil, eventually making themselves the point of reference of the operation.

In 2012, BMG and Itau Unibanco S.A. signed an association agreement whose objective was to offer distribution and commercialization of payroll loans in Brazil, giving rise to the Banco Itau BMG Consignado. Later in the year, the two companies entered a pact to unify the business, hence focus the payroll loans operations as a common goal. The agreement led to BMG owning 40% of the total and voting capital stock while the Itau Unibanco holds the rest. The unification was highly advantageous to BMG as it gave them an opportunity to venture on other products such as Payroll Credit Card, BMG Empresas, and financing of used vehicles.

Over the years, BMG employed working strategies so as to satisfy their customers’ needs as well as reaching their portfolio. The strategies of BMG are well-specified under some pillars that act as the baseline. The first pillar is profitability in such a way they concentrate on loan portfolio in that they attract massive profit levels. Additionally, BMG conducts its business in that they ensure high asset quality as well as strive to spread their funding sources. Furthermore, BMG aims to provide high operational efficiency and building high-performance labor force.

The competitive advantages that BMG holds over other firms are their tradition and high brand recognition that they have built over the 80 years they have been in the business. Additionally, the firm’s strict and conservative risk policy as well as the entrepreneurial and innovative culture gives them an upper hand over the others. Lastly, the concrete corporate governance practices and the high flexibility to adapt market conditions gives them a nod over the other companies.

Currently, Ricardo Annes Guimaraes serves as the President and CEO of the BMG as from June 2004. He served the BMG fraternity in different levels starting from 1980. Ricardo graduated with a degree in business administration from Una-Faculdade de Ciencias Gerenciais in 1988.

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