The success of BMG competitive strategy

BMG is a financial institution that is privately owned and controlled by the Pentagna Guimaraes family. The family entered the Brazilian banking industry in the 1930s by establishing the Banco de CreditoPredial S.A. It was later renamed to Banco de Minas Gerais S.A.

BMG is a commercial bank offering a variety of financial products to their clients. For years, BMGs sales strength and professional operations have given it a cutting age in the Brazilian financial sector. The institution was able to create a brand that is a household name in Brazil because of its tradition, ability to tap into modern technology and to understand and move with major market shifts.

BMG concentrated in wholesale and consumer financing as its core business. It took up the largest market share in vehicle financing until the 1980s. After a few years, BMG shifted its focus to providing payroll loans. In 2012, the bank formed a joint venture with ItauUnibanco S.A with the aim of distributing and commercializing payroll loans in Brazil. Currently, the BMG and ItauUnibanco SA are in a unified business offering payroll loans.

The unification strategy in the joint venture seemed to benefit BMG even though it only owns 40% of the total and voting capital stock while ItauUnibanco owns the rest. Some of the advantages that BMG experiences in the joint venture include helping the bank to concentrate on other strategic products, which include financing used vehicles, BMG Express and payroll credit card.

The ability for BMG to stand out in the financial market is attributed to the professional management team that has maintained a high-level corporate governance practices. BMG relies on the board of directors with at least 40% of them being independent members. Under the knowledge and discipline of BMG’s vice president and operation director Marco Alaor, the institution has been able to lure more consumers in Brazil, business entities and investors to their strategic plans.

Marcio Alaor has steered the bank to profitability and sustainable growth successfully despite the presence of intense competition in the Brazilian financial market. Among the adopted strategies that have made BMG remain competitive is tapping into the veteran credit team that utilize technological resources and have an incredible experience to spearhead BMGs values of credit policies.

It is through the director Marcio Alaor and BMG vice president that the bank has been able to diversify its funding and investment practices. BMG core strategy is their intent to ensure that companies and individual consumers can reach their financial goals while at the same time mitigating the institution’s financial risks.

Foreign Law Graduates

The Brazilian legal system is unique. It has elements of the Portuguese, Italian, and German legal system. Its first law schools were not established until 1827 and the Brazilian Bar Association was not founded until 1930. The Brazilian legal system is often described as being a hybrid. It is said to follow in the civil law tradition. It’s based on statutes drawn from the Federal constitution which must be followed by judges on every level of the legal system. A constitutional amendment is necessary to make any changes.

The Brazilian Bar Association was created by the Brazilian Lawyers Institute. It took 100 years to develop. In order to take the bar exam, students must complete law school. This requires 5 years of educational and vocational training at a public or private law school which is accredited and authorized by the OAB Federal Council’s National Commission of Legal Education. The Federal Ministry of Education supervises and regulates it. Students must complete compulsory courses from the Basic Education Axis, the Professional Education Axis, and the Practical Education Axis.
In Brazil you must have a Bachelor of Laws degree to become a lawyer. Unlike in other legal systems, you cannot be a graduate of a non-law subject then take a conversion course. Prospective lawyers must earn their law degree then pass the two part bar exam. The first part covers compulsory questions and the second part deals with the area of law in which the candidate wishes to specialize. Once candidates pass the bar exam, they can practice in any area of law they desire whether it’s appearing in court, drafting legal documents, being in-house counsel, or giving legal advice.

Law graduates have the option to become public defenders, prosecuting attorneys, government attorneys, or judges. However, to remain in good standing they must observe the set of disciplinary and ethical rules designated by the Code of Ethics and Discipline outlined by the OAB. Foreign law graduates must follow the requalification process to practice law in Brazil. This includes validating their foreign diplomas and passing the Brazilian bar exam. The validation process may require taking specific courses and/or passing certain exams to receive a Bachelor of Laws degree from a Brazilian university. The process can take up to six months. Portuguese lawyers are exempt from this process.

Ricardo Tosto de Oliveira Carvalho is an experienced, well-respected Brazilian lawyer and legal strategist. He has appeared in court to successfully defend the government, politicians, both multinational and local businesses, and many well-known public personalities. He has pioneered many legal strategies and mechanism that have since become commonly used legal tools, mentored numerous young lawyers, and devised innovative legal strategies to address special problems that have arisen in cases handled by his law firm Leite, Tosto, e Barros Advogados.

Mr. Tosto specializes in civil, commercial, administrative, and election law, business restructuring, reorganization, power concessions, acquisition review, credit recovery, bankruptcy, banking contracts, and more. He is a published author and member of many highly-respected Brazilian legal organizations.