BMG Bank President Ricardo Guimarães Has Invested Millions In Brazilian Soccer And His Bank Has Reaped The Rewards

The government of Brazil has been on a quest to revamp the social status of the country for the last seven years. President Dilma Rousseff and her administration of Working Party loyalists have pulled millions of people up from poverty and made them middle-class. The economy in Brazil in 2009 was strong enough to create jobs for these people, and Brazil’s export business with China and other countries seemed like it was never going to end. But it did end, and so did Rousseff popularity with the newly-created middle-class.
The banks in Brazil decided to market consignment credit to the new middle-class, and that financial move gave Brazilians a chance to finance homes and automobiles for the first time ever. But when commodity prices and oil prices dropped jobs were lost, and Brazilian banks were left with bad loans and deteriorating bottom line profits. Banks stopped lending money unless the borrowers had more than enough collateral to cover the loans and the central bank raise interest rates to an extraordinary level. The Brazilian middle class was caught in a financial trap and so was the government.
But one banker decided to market his loan product using football, and his marketing plan has been successful. That banker is Ricardo Guimarães, and his loan product is called payroll loans. There are 60 other banks in Brazil that offer payroll loans to consumers, but none of those banks do it better than the Guimarães team at BMG Bank. In fact, the football fans in Brazil associate payroll loans with BMG Bank and the bank’s market share has skyrocketed, according to an R7.com piece.
Ricardo Guimarães is not only a hometown hero according to CMBH.mg.gov.br. He is also a sports fanatic that not only invests in football clubs he has also been president of one of them as well as Chairman of the football association that watches over the league. Guimarães was recently honored by the city of Belo Horizonte for his leadership role in sports as well as his banking skills.
Guimarães also takes an active role in the consignment credit industry. His bank has more than an 18 percent market share in that industry. BMG Bank is a very profitable bank even with high-interest rates and inflation running at 10 percent a year. Ricardo believes that football has made his bank a household name in Brazil. The bank’s orange BMG logo can be seen on the jerseys of the Atletico- GO, Coritiba, America- MG, Cruzeiro, Atlético- MG, Flamengo, Sao Paulo and Vasco clubs every time they play a match, according to Esporte.ig.com.br. The middle-class may be struggling in Brazil, but they still love football, and they also love BMG Bank and Guimarães for their role in the game.

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