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BMG Bank Has Done An Excellent Year In Spite Of Brazil’s Economic Issues

In 2010, Brazil’s gross domestic product grew by 7.6 percent. In 2015, the GDP will shrink by more than three percent. Brazil was Latin America’s success story for three of the last five years, but the budding emerging market is a financial basket case these days. And 2016 doesn’t look much better, according to economists that are keeping tabs on the country. But the banks in Brazil are not feeling the effects of the worst recession in the last three decades. The big banks know how to survive and prosper when the economy is shrinking. Most banks use government bonds to protect themselves when things get tough, but one bank is using a consignment credit product to weather the economic storm. That bank is BMG Bank, the Minas Gerais bank that has been around for more than 80 years.
BMG Bank started as Banco de Crédito Predial S.A in 1930. Banco de Crédito Predial S.A was a family-owned venture. The Guimarães family owned all the shares back then, and the family is still in control of the bank. BMG Bank has gone through a series of changes over the last 40 years. The name has changed several times, and so has the direction of the bank. BMG Bank went from a vehicle lender to a payroll loan bank over the last 20 years thanks to President Ricardo Guimarães and his right-hand man, Vice-President Marcio Alaor. Alaor is the director of operations. Alaor is responsible for putting BMG Bank on course for the important mergers and acquisitions that have developed over the last four years.
Brazil is not the easiest country in the world when it comes to borrowing money. Before 2009, most Brazilians couldn’t get a loan. The pay-as-you-go system was standard operating procedure for millions of employed Brazilians, but President Luiz Inácio Lula da Silva changed that when he took office. He wanted to build a new middle-class that would borrow. He thought the deficit finance system was the answer to the countries problems, and the banks loved him for changing things. But that love affair didn’t last long. In 2014, the banks stopped lending money, and inflation started to eat away at the incomes of the working class.
BMG Bank and other banks found a solution. They call that solution payroll loans, and BMG is one of the leading banks in that industry. Bank profits have never been better. Marcio Alaor and Ricardo Guimarães have won several awards because of their leadership in the consumer credit market. The work BMG Bank has done to promote payroll loans has also been recognized by the Brazilian public and several prestigious organizations. BMG Bank has gone from a one state lender to a national supplier of loans for the masses.

You can follow Marcio Alaor on Twitter.

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