The recent partnership of BMG and ITAU bank to form a new bank came as a surprise to many considering the BMG negotiations with another bank. The announcement of the partnership was announced by the vice president of the bank Mr. Marcio Alaor. Marcio acknowledged whereas the initial engagement with other banks, the ITAU bank CEO called in the last minute of the talks and offered the best deal.
The current credit industry in the country is not taped in the private sector. The creation of the new bank is widely anticipated that it will tap in the sector with payroll loans. The partnership is advantageous to BMG has it has an extensive network in the market. The BMG bank is the pioneer in the credit industry, especially in the consignment sector.
The largest problem is money scarcity resulting to banks turning to outsourcing fund for the new bank. The BMG will contribute 30% and ITAU adding 70% of the funds. The bank is set to start operations in the next 90 days. In cash, the BMG will contribute the 300 million and ITAU the 700 million of the total 1 billion required by the bank. The bank will have a chance to diversify and grow other assets. The partnership is well defined to avoid internal competition. The BMG has several networks distributed in major municipalities in Brazil. it will be the company’s opportunity to grow from the current R $ 600 million to R $1 billion
With the current economy in Brazil, the government is doing all possible to bring the growth to 4% on average. The new bank ITAU BMG payroll bank is expected to boost the current market and portfolio of both banks. BMG has already considered directing most of its payroll customers to the new bank once it becomes operational. The significance of the new partnership will not change the BMG database.
Marcio is among the top director of who have propelled BMG to success. The entrepreneur has several other interests around the globe including in the airlines sector. The outspoken Brazilian citizen is very popular in the banking industry. He is a specialist in finance and accounting industry since his days from college. He is also a philanthropic leader in ensuring the rights and welfare of community to food and education are well supported. BMG has undertaken several partnership programs including supporting the local soccer under his leadership. The article is recapped from Minas journa.