As found on Exame.com, Marco Alaor was recently honored at the 33rd Agricultural Exhibition of Santo Antonio de Monte, also known as the Expose Samonte. In honor of the well known executive of BMG bank, a food court was opened and named after him. The Ford Court Marcio Alaor de Arujo was named as an acknowledgement of the service he has provided to the people of Brazil and the hard work that allowed him to rise to the top.
Marcio Alaor, who now is an executive at one of the largest banks in Brazil, with over 85 years of service the people of Brazil, would not have made it without the help of his fellow Brazilian citizens. In particular, Dr. Wilimar Pai helped Alaor from the time hew was a young boy and shined shoes for a living. Dr. Wilimar helped him earn the money he needed to survive by sending him shoes to shine each week.
Even after he grew up and and became successful, Marcio Alaor has not forgotten where he came from. He has continued to help his hometown grow. As vice-president of BMG bank, he is in an even better position to do so. He values friendships and people over his money. After being honored Marcio Alaor gave a speech that acknowledged these things. He also stressed his belief in the city and the people of his country.
According to his biography on Wikipedia, Marcio Alaor has many accomplishments to his name and has been very generous. He is an active sponsor of Brazillain football, with 39 clubs bearing the sponsorship of BMG bank due to his efforts. Additionally he sponsors men’s and women’s volleyball, and basketball, as well as the fighter Vitor Belfort, all of which are an important part of Belizean culture and the economy of Brazil.
As found on Exame.com, Marcio Alaor’s uses his financial savvy and expertise to help inform the people of Brazil about the world financial market. For example he recently reported on the economic stability of Austrailia despite the recent world wide financial crisis, and explained how Austrail’s position as major exporter of important goods and services has helped the country to stay afloat despite hard times. It is both Marcio Alaor’s knowledge of worldwide financial markets, and his dedication to helping the major cultural and economic staples of his country that make him such a well respected man.
The automotive business in Brazil is big business for some banks. BMG Bank is one of those banks. BMG Bank director Marcio Alaor has built a very profitable automobile loan business in Brazil, so he stays up-to-date on the financial conditions of the automobile companies. BMG Bank makes new and used loans, so it is important for Alaor to keep up with recalls, changes in stock prices and any other issues that might impact the value of automobiles. Alaor is one of the top bankers in Brazil.
The recent issues that Volkswagen is experiencing is a good example of how quickly automobile stock can drop in value. Consumers stop buying from companies that have damaged reputations, and it may take them years to get those customers back. That’s why Alaor is tuned into stock prices, and any news that concerns automobiles and automobile manufacturing.
Alaor believes Initial public offerings (IPO) of automobile stock helped the stock market grow over the years. General Motors has been traded on the stock exchange for more than 100 years, and Ford has been traded for more than 60 years. The value of General Motors today is more than $53 billion and that is just one automobile company. Automobile stocks are hot this year. Car sales are running well ahead of 2014, and most automobile stocks have increased in value.
The automobile companies haven’t suffered a major amount of recalls in 2015, but there are always recalls, according to Alaor, and they impact automobile values. BMG Bank and other banks that make automobile loans are careful when they grant those loans. Some automakers are better than others in the lender’s eyes, and that can impact the amount of money a lender will lend.
Most of the automakers are performing well in stock markets around the world this year, but there are exceptions. Nissan stock is down 18 percent; Ferrari is down 10 percent; Ford Motor Company is down 10 percent; Porsche is down 42 percent, and Volkswagen is down 35 percent.
There are many factors that impact the value of automobile stocks, so Alaor and his team at BMG Bank are constantly monitoring automobile statistics. The good news is people in Brazil are buying cars in spite of the recession and the high inflation rate. Brazilians love their cars and automobiles are usually the first purchase they make when they can afford a consignment credit loan.
Source: Exame Magazine
When the BMG Bank first opened its doors for business, it was a family owned bank that offered car loans and equity loans to Brazilians that have enough collateral to receive a loan n 1930. In those days, loans were only granted to rich Brazilians because there was no middle-class in the country when the Guimarães family decided to open their own bank. Brazil had a wealthy group of people that didn’t need loans and poor people that had very little of value. Brazil’s government was riddled with corruption in those days, and the corruption continued for most of the 20th century.
The economy started to change in Brazil in 1994. The new government wanted to create a middle-class that could borrow money for homes and automobiles as well as for other goods and services that would help grow the economy. Banks began to lend money to the newly formed middle-class and the country’s economy exploded until the 2008 worldwide meltdown. Brazilians were getting loans with little collateral before the meltdown, but all that changed when the banks decided they were exposed to bad loans and a lot of them. In 2010, the BMG Bank and a couple of other banks decided to test a new product called consignment credit on the middle-class, and it was accepted with open arms.
Consignment credit in Brazil is now a $R139 billion industry and Ricardo Guimarães, the President of BMG Bank, has an 18 percent market share in that industry. BMG Bank owns more than $R23 billion of the $R130 billion consignment credit loans on the books, and the bank is very profitable. There are more than 60 Brazilian banks offering consignment credit loans in Brazil today because there are more than 40 million middle-class citizens in the country, and most of them are working and need a loan to buy something.
BMG Bank’s consignment credit product is called a “Payroll Loan” Borrowers that need a loan get one if they have a job and can show they can pay back the loan in a reasonable amount of time. The loan is guaranteed by their income. Payroll loans have lower interest rates, and they can be automatically deducted from paychecks. Ricardo Guimarães thinks payroll loans help middle-class Brazilian buy products and services now and that is helping the weak economy. Brazil is going through a tough recession and inflation is eating away the disposable income of many Brazilians. BMG Bank is helping its clients battle those issues with several bank products that fall under the umbrella of consignment credit.
The economy of Brazil has been fairly stable for a long time now. Consequently, the economic progress of the country has been on the trajectory. As the country’s economy progress so has been the profitability of the organizations in that country. Most of the organizations in the banking industry have been on the gaining end. One such cooperation that have been in the rise is BMG. BMG is a family owned Brazilian Bank. Its current CEO Mr. Ricardo Guimaraes has guided it to its success over the years since he took over as CEO in 2004.
A country’s success in finance is dependent on the strength of its banking sector. Currently, Brazil has a strong banking foundation. The existence of stable banks like BMG in the Brazilian economy will only make the country grow exponentially. The Bank started off by offering loans to finance trucks and cars. It has since graduated to offer loans to individuals, business and other corporations.
The CEO of BMG, Mr. Ricardo Guimaraes has played an important role in the organization’s transition. It is not any other day that an organization succeeds as BMG over the years. Some of the factors like economic depression has seen many organizations crumble. However, the Mighty BMG is only getting stronger. The reason for the success is as a result of adopting strategies like expansion that have served it well. Having more than 50000 agents and more than 3000 points of sales in almost all municipalities in Brazil is a testament.
Brazil offers so much when it comes to banking. The high population has not been fully exploited by the banking Sector in Brazil. BMG strategy is to capitalize on the expansion in order to gain the most from it. Even in the face of competition, all the players in the industry need not worry as they have a lot to gain from. Ricardo Guimaraes in his speech explains how he intends to capitalize on the same to build a stronger brand for BMG.
In conclusion, for any organization to be successful, it has to look for ways of giving back to the society. BMG has been a success when it comes to the involvement in corporate social responsibility activities. Soccer is the most loved sports I Brazil. The bank has be in the fore front of offering many unfortunate children and the youth an escape route from crime and other vices by offering them assistance through sponsorship. The activity has been lauded by many making it a darling to the society.
Brazil being the sixth largest economy in the world with the United Kingdom, Italy, and France, followed by Spain, Mexico, and South Korea provides a vast opportunity for investment. The Brazilian economy offers a stable and sustainable growth with statistics proving a growth rate of 5.3% in 2007 and and inflation rate of 3.7%. Higher Brazilian participation in the world trade has increased their growth rate since 2003 as compared to other global imports. The countries sustainable growth is one of the many factors that draw investors to the Brazilian market.
Brazil is also strategically located for all types of investments as it borders most of the South America countries apart from Ecuador and Chile. With more than 900 million potential customers in the consumption market considering North America, Latin America, and Brazil, the country surpassed US$2 trillion PPP as at 2007. Investment profitability has also been impressing in the last few years with a return on investment exceeding the annual mean of 26%. Foreign investments in Brazil are at liberty to send their profits to their native countries while they continue with business. In 2007, Brazil attained 30% of the Foreign Direct Investment proposed for the Latin America that led to a 99% growth rate, very remarkable statistics.
There are so many investment areas one can opt for since Brazil thrives well in almost all sectors of the economy especially the production sector. Brazil is among the largest producer and exporter of agricultural products in the world as well as sugarcane, coffee, and fruit juices. The country is the leading producer of ethanol, producing 17,7 billion liters per year from almost 308 installed production plants.
Big investors are currently on the look out for buying cheap assets in Brazil since the stock market is low by 25% off its highs in 2011 but is anticipated to rise. This has resulted in Brazil currency being at its lowest level as compared to the U.S dollar since 2005. Investment funds are also a catch in the Brazilian market. Among investors taking an interest is Zeca Oliveira, the president of Bridge Trust, who is in charge of resource management and fund management areas. The Bridge Trust Administration Resources signed an agreement with Gradual Investimentos to a partnership. The financial group merged with a total of R $ 6.5 billion in assets under management whose transaction will be subject to the Central Bank’s approval. Zeca Oliveira is optimistic that the association will boost ‘cross-selling’ of products and services while heightening its customer base.