Marcio Alaor, BMG Bank And Banco Ita Agree To Form A New Bank

 

Forming a new bank in Brazil isnt easy. Brazil has a lot of banks, and the state controlled banks usually get most of the attention. But a recent article published by EM.com.br announced a new bank formed by a partnership between BMG Bank of Minas Gerais and Sao Paulo based Banco Ita. The partnership is seems to be an unusual pairing since Banco Ita is the fifth largest bank in Brazil and doesnt need a partner. Banco Ita merged with Unibanco in 2008 and that merger produced a super private bank that has a decent market share in the banking industry in Brazil.But this new billion Real partnership with BMG Bank is different. Both banks are successful without one another, but the banking business in Brazil is so competitive that both banks feel they can produce more business by forming a new bank. The new bank is called the Ita BMG Bank, and it has an initial capitalization of $R billion. Banco Ita invested $R700 million and BMG Bank put up $R300 million to get the bank started. According to BMG Bank Director Marcio Alaor the partnership and the new bank will produce more revenue at a lower cost. Lowering costs in Brazil is a priority for bankers in Brazil.

Marcio Alaor is well equipped to handle a major transaction like this one. He has been the Vice-President and Director of BMG Bank for years and is a respected member of the Brazilian banking community. Alaor was born in the state of Minas Gerais and grew up in a small village that produce fireworks. There wasnt much opportunity for Alaor in that village when he was a boy, but he made his own opportunities. When he was old enough he went to school got a degree and joined the banking business.

Even though Alaor is a important member of the BMG Bank family and a skilled negotiator he still has time for the people in his village. Thats what keeps Alaor grounded. Helping others is what he does best.

The formation of Ita BMG Bank will also help people get the payroll loans they need to survive the recession. Alaor thinks the new bank will attract new customers to their payroll loan product and Banco Ita agrees. Both banks are betting the new bank will lower costs and bring in new clients. That is the nature of banking in Brazil. Consignment loans fuel profits in Brazil and BMG Bank and Banco Ita want more profits.

Leave a Reply

Your email address will not be published. Required fields are marked *