BMG AND ITAU BANKS PARTNERSHIP TO CREATE NEW BANK

 

 

The BMG has closed in its new partnership with Blanco ITAU bank. The announcement was made by one of the company’s director’s Mr. Marcio Alaor in an interview. He is the vice president of the leading bank in Brazil. The Bank is the pioneer of the pay loans sector with specialization with consignment credit. The bank maintains a strong relationship with its customers in its efficient strategies and the highly competitive market. The partnership will have a significance effect on the market and will lead to the creation of a new bank the ITAU BMG payroll. The primary role of the bank is to safeguard the BMG operation in payroll loans. It’s expected to advance over R 300 million to customers and will remain operational for over three years

 

The new merger bank is set to start operations in 90 days. It will also finance private sector employees and tap the enormous potential market. The merger of BMG and ITAU bank came as a surprise to many. The initial negotiations with other banks like Bradesco and BTG banks. In the last talk minutes, the call from ITAU CEO changed focus and BMG considered the new partnership. The new BMG funding will give access for BMG to a financing of $ 3.5 billion in the next five years.

 

In an interview conducted by the Minas, the BMG vice president ended speculation of the many players in the market. The new partnership differs from the initial arrangement with other banks in that the BMG’s databases will remain unchanged and BMG will contribute shortly. The current operation of BMG bank remains unchanged. The new bank will exclusively deal with the payroll loans and enlarge the scope of the private sector.

 

The BMG will own 30% of shares in the new bank. ITAU bank is expected to contribute at R700 million to add the total contribution to R 1billion. The BMG bank is planning to transfer all its payroll transactions to the new bank. The banks agreed to restructure its system to incorporate the new bank. With the shortage of money for the new bank, the banks will have to outsource over 100% funds.

 

Marcio is the current t vice president of the bank and very key to its operations. He lives in Belo Horizonte, in Brazil. He is an experienced entrepreneur who has propelled BMG bank to its great height. The article is recapped from Mina’s journal.

 

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