Brazilian Banks Are Feeling The Effects Of The Recession According To BMG Bank President Ricardo Guimarães

January 4th, 2016

A high inflation rate, rising unemployment and a political fiasco are turning Brazil into a country that can’t seem to get anything right economically speaking. Even hosting the World Cup last year was a financial nightmare and some nay-sayers say the upcoming Summer Olympics will be another financial disaster because the country is not prepared for another world-class event like the Olympics. The Brazilian government has lost credibility with the people thanks to corruption allegations and mismanagement claims. Even the banks in Brazil are having a hard time making money thanks to high-interest rates and a middle-class population that is broke.
Most banks in Brazil have stopped lending money to small businesses because of the loan default rate, but one bank, BMG Bank, is still lending money to the middle-class. BMG Bank has a product called payroll loans and the bank markets that product by sponsoring football clubs. BMG Bank sponsors clubs like Atletico- GO, Atlético- MG, America- MG Cruzeiro, Flamengo, Coritiba, Vasco, and Sao Paulo. BMG also sponsors players on other clubs according to an article published by Esporte.ig.com.br. BMG Bank invests million in sports sponsorships, and those sponsorships have paid off. While the big Brazilian banks are struggling to beat last year’s profit figures, BMG Bank is having a record profit year in spite of the recession.

One man is responsible for BMG Bank’s success, and that man is Ricardo Guimarães. Ricardo Guimarães is one of those entrepreneurs that knows that big ideas, creative dreams and a proactive attitude produce results. A recent study by Meta, a British research firm, found that most Brazilian entrepreneurs lack the proactive mentality to be successful. Most of them have dreams, big ideas and those ideas and dreams are creative, but they just don’t have the drive they need to move to the next level. Guimarães is not one of the entrepreneurs that R7.com talks about in a recent article on Brazilian entrepreneurs.
In fact, BMG Bank is a very profitable bank thanks to Guimarães turning his love of sports into an ingenious marketing plan. Even though BMG Bank is a small bank when it is compared to the top ten bank in terms of assets and capital, it is one of the most recognizable banks in Brazil thanks to sports sponsorships.
Another article published by R7.com mentions Guimarães and BMG Bank’s ability to stand out in the banking world because their orange BMG logo can be seen around the country when various football clubs take the field. The big banks may be suffering from the recession and some of them the small banks might close, but BMG Bank won’t be one of them thanks to the dreams and creative ideas of Ricardo Guimarães.

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