In Brazil the banking industry has grown into a multibillion dollar industry. This can be attribute to the growing economy in the country and the heightened level of investment. As the country’s economy continues to grow, the demand for banking services continue to grow in response as money and other capital are generated in the economy. The situation in the Brazilian economy has been like this and the country has been experiencing exponential potential in the business sector. Being a regional business hub, Brazil has attracted investors from all over the world and this factor has further expanded the need and the demand for banking services. As a result, growth in the banking industry has been inevitable.
Among the greatest banks in the country, BMG is one of the popular financial institutions. The company is owned by a popular business family in Brazil, the Pentagna Guimarães family. According to the Brazilian financial history background, this family has been in the financial business for quite a long time since 1930. By then, the family was running commercial bank, Banco de Crédito Predial S.A. which was mainly focusing on payroll loans. As the company was sole dealer in this type of service, it became the pace setter in this type of service in the entire industry. It was until the 1990s when the company changed its operational focus to the motor industry.
In this period, the company was wholly involved financing wholesalers and consumers and it eventually became the leader in other innovative areas such as sponsoring heavy and light weight vehicles. The company has been doing very well in the Brazilian market and it has become a market leader in the provision and distribution of payroll loans. In order to achieve its goals, the company has gone through phases of change and merging to enhance its market leadership. The company merged with Itaú Unibanco S.A. to offer a new perspective of payroll loans, which included the commercialization of the product.
In this agreement, the company is a 40% partner while Itaú Unibanco S.A. owns the rest of the shares. The company felt that it needed to split its functions in order to concentrate on a few one’s that would yield more returns. As afore mentioned, the company was founded by the Pentagna Guimarães family and it has almost 80 years of experience in the financial market. The company has a reputation for solving problems and offering solutions to financial situations to individuals, companies, or even governments. One of the greatest strength that the company has in the industry is its line of product, its sales muscles, as well as its structure of operation. Through the aforementioned the company has been able to make a name for itself.