#1: What Is Ricardo’s Role In The Process
Ricardo Guimarães is the president of BMG Bank, and he believes that his company must cede some control to Bank Itau. The partnership will see the two boards come together, and the executives of both companies will take on different roles. Ricardo has had the bank in his family for so long that this may seen like a shocking development, but smaller banks must merge to prevent the onslaught of the largest banks in the world.
#2: How Does The Partnership Work?
The partnership between BMG and Itau is one that will see both companies taking up quite a lot of room in the market. The two plan to offer better payroll loans to people around the country, and these loans will replace other loan products that were created in the past. Payroll loans will help businesses and individuals around the country find the cash infusions they need, and both banks will market the same program.
#3: How Much Money Does Brazil Need?
Brazil is in need of cash that will help fund new businesses, payrolls for established businesses and money for individuals who need extra cash. These services will help the citizens of Brazil find the money they need quickly, and the two banks together will cover more area. The partnership helps strengthen Brazilians and the banks at the same time.
#4: Fighting Against Larger Banks
Citibank and other large banks have been established in Brazil over the past few decades, and these banks come with resources that are extensive. BMG Bank and Bank Itau are not as large as these competitors, but they will have a greater impact together. A bank like Citigroup will have a much harder time competing with two Brazilian banks that have teamed together.
The partnership that Ricardo Guimarães approved will bring together Bank Itau and BMG Bank in one group. The two companies will share executives and resources as they try to beat back larger banks who are taking over the country one customer at a time. Ricardo’s wisdom has likely saved his family enterprise from the clutches of a larger foreign bank.