Banks don’t like to be associated with controversial businesses or people that might tarnish their image in the financial world. Most banks stay away from running distasteful ads that could come back and haunt them. But one Brazilian banker is redefining bank advertising in Brazil, and it’s working. His name is Ricardo Guimarães.
Ricardo Guimarães comes from a long line of bank executives. Ricardo’s grandfather, Antonio, started the Land Credit bank in the State of Minas Gerais in 1930, according to a recent article published by CrunchBase.com. Ricardo’s father Flavio took over the bank when Antonio retired. The bank went through a growing and acquisition process through the years, and the name of the bank was changed to the BMG bank in the 1970s. In 1998, Ricardo became president of the BMG Bank, and he saw an opportunity that other bank executives didn’t see.
Ricardo is an avid sports fan, and he decided to combine sports and banking in order to promote bank products like payroll loans. Payroll loans are popular in Brazil because borrowers can get a lower interest loan when they used their monthly income as collateral. Ricardo approached the local Minas Gerais football club and offered to sponsor the club if they agreed to wear the three letter orange BMG logo on their jerseys during matches. R7.com interviewed Guimarães recently, and he said that meeting changed BMG bank forever.
Guimarães became Chairman of the football club known as Atlético Mineiro in 2001, and he remained in that position for five years. During that time, BMG Bank increased their football sponsorships, according to CMBH.mg.gov.br. BMG Bank’s orange logo was everywhere on football days in Brazil and the fans loved it. They loved the fact that a Bank could feel like one of them and when they needed a loan, BMG Bank was the first bank they called. BMG Bank had to hire more than 800 representatives around the country to handle the demand for their payroll loans.
BMG Bank is now the second most profitable bank in the payroll loan business. BMG Bank recently merged with the fifth largest bank in Brazil, Banco Itaú, and a new bank, Itaú BMG Bank, was formed just to handle the demand for payroll loans. The new bank processes new loans at a reduced cost to both banks so the profit margin increases on each loan. Most borrower’s payback payroll loans on time and they keep borrowing, so they can deal with inflation and the recession that is making like miserable in Brazil.
People who have dreamed big even when they were in small positions are not alone. Marcio Alaor was one of these people. He is now one of the people who are in a hug position with a huge company. This is all due to the fact that he was not afraid to dream big and wasn’t afraid of pushing toward the success that he knew he wanted and deserved to be able to have when he was with the company. Starting out as one of the shoe shiners for executives at BMG, Alaor never knew how far he would really go.
Among the many inspirations to Marcio Alaor’s success, Dr. Wilmar is one of the biggest. According to this article from Exame.com, Marcio Alaor was shining Dr. Wilmar’s shoes when Wilmar noticed that there was something different about the young man. He was not like many of the other shoe shiners and truly took pride in the job that he was doing. He was also a very hard worker, which was difficult to see in people who had these low paying jobs like a shoe shiner position. Dr. Wilmar took an interest in Marcio Alaor.
Throughout his time getting his shoes shined, Dr. Wilmar would talk with Marcio Alaor and would find out more about him. He would learn of where he came from but, more importantly, would learn about where he wanted to go in his life. Wilmar was impressed with the big dreams that Alaor had and knew that the young man would be able to succeed at these dreams if only he worked as hard as what he was working while shoe shining. This quickly became a great friendship that the men developed and Dr. Wilmar gave him the chance of a lifetime at BMG.
Dr. Wilmar recognized that he couldn’t just put the young man with no experience into a high-pressure situation, so he put him into an entry level position with the bank. He wanted to see the boy succeed, but he did not want to hand it to him. He knew that Marcio Alaor would work hard and that he did. He never stopped striving for success while he was working at the bank and was always among the hardest workers. This allowed him to gain promotion after promotion. The drive for success and hard work ethic are what led him to becoming the vice president of BMG.
Electronic Forms of Payment
The interview with CNBC Squawk Box has brought up many good points and questions surrounding the penny. There is one very valid point about the demise of the penny. This is because of the electronic payment method. It should be known that approximately 75 percent of transactions are electronic. The penny may have lost its overall use. The current methods of payment are a factor that is incorporated in the penny debate.
To Eliminate the Penny of Not to Eliminate the Penny
The debate over the penny continues. The penny is the seat of President Abraham Lincoln. The state of Illinois does view the penny as a valuable coin. There are many who will claim that there is not a need for the penny. Many also claim that it is not worth picking up a penny at this current time. There are many views that may lead to the demise of the penny.
Economist Think Prices will be Distorted
There are some economist who hold the belief that if the penny is eliminated, the overall prices will be distorted. This is one argument that is for keeping the penny in circulation. Most transactions should not really be affected if the penny is removed from circulation. Would the prices be rounded up?
No Need to Irritate a Customer Over a Penny
The business perspective is included in this penny debate. A business will not want to irritate and lose a customer over one or two pennies. The nickel has been included in this penny debate. Competitive pressure may affect the penny debate.
Protection for the Penny
There are many groups who believe that the penny ought to be protected. The penny lobby would like to keep the penny in circulation. The production of the penny has actually been outsourced. The zinc industry would like to keep the penny. The state of Illinois also has an interest in keeping the penny protected. This entire process must be taken slowly. Thought is being put into this decision.
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