Established in the 1930s, BMG becomes one of the oldest privately owned financial institution in Brazil. Since its inception, the bank mainly focused on wholesale and consumer financing as well as establishing themselves as the market front-runners in the funding of heavy and light vehicles in the 1980s. For the 80 years in the finance sector, BMG established themselves as the leading financial institution in Brazil with a concrete performance over the years. Over the years, BMG became outstanding in the Brazilian financial sector because of they strengthen sales as well as their operational prowess.
BMG success is due to their tradition and culture cultivated over the years. The BMG embrace a well-stipulated strategy that gives them the competitive advantage over their rivals. The tactics revolve around profitability, asset quality, diversification of funding sources, operational efficiency, as well as human capital. The tactics created a brand known all over Brazil due to its custom, technology, and their capability to forestall significant market changes.
BMG has some competitive advantages over the rival firms over the years due to their gorgeous and groundbreaking history. The benefits include their tradition and strong brand recognition built around conservative risk policy. Additionally, the entrepreneurial and innovative culture in the field, as well as sound corporate governance practices, tend to attract more clients to their doorstep for financial help.
In the 1990s, the BMG changed its portfolio of business, changing its focus to the provision of payroll loans. BMG entered an association pact with Itau Unibanco in July 2012.The agreement’s objective was to offer, distribute, as well as commercialize payroll loans in Brazil, therefore giving rise to a joint business entity known as Banco Itau BMG Consignado. Later in April 2014, the two principle partners decided to merge the enterprise, with a full focus on payroll loans as their chief venture. The unification of the business bore some fruits to the both parties involved. The advantages included that the merger made the bank explore on other strategic products for instance Payroll Credit Card and BMG Empresas.
The leadership Banco BMG also has been instrumental in creating the successful financial firm. Marcio Alaor has served the institution at various levels since 1977, and he is the current vice president since 2011 as well as a member of the board of directors. Marcio Alaor BMG played a crucial role in making Banco BMG center on payroll loans in the 1990s.
In conclusion, Banco BMG established themselves as the benchmark of the financial institution in Brazil. The efforts of their leaders such as Marcio Alaor has been instrumental in the success of BMG over the 80 years.