Brazil and Finance Service Industry
Brazil’s most admired company
Vast natural resources
Slow down in Brazilian economy in 1980’s
President Lula & GDP grew by 5.2% in 2004
less than $2 a day and 13 % less than $1
Environmental Deficiencies: waste water, 40 % solid waste, poor
Homicide rate 50 per 100,000 residents and Drug gangs
Federally-owned, state-owned, private Brazilian controlled and
foreign controlled banks
Dependent on Float Revenues
Two periods of inflation
“Plano real” a program to control the exchange rate as an
Came in response to international financial crises, local
interest rates increased, many international banks entered
Focus on the
Customer and Markets: Actions at the core
of the Business
Focus- Customer, Stressing Relationships Rather than Transactions
Focus Goal include- Decision making, Reviewing Communications
Shift in Segmentation- ( Business, Standard, Special, Premium) to
(Lawyers, Retired Persons, Dentists, Military Personnel, University
Students, Teachers, Professors & Doctors)
Breaking Relationship – Amazon, Providing Support-Harvesting
operation (With oceanographer)
Raising the stakes- Training program
Credit risk analysis- not only analyzing results but attitudes of clients
( prone to take action ) –
character, capacity, capital, collateral, conditions
Questionnaire- based on accidents, toxic treatment, cross check
Eucalyptus - 40% area, ( solves driving out of birds, animals), helps
20-25000 people benefit
Screening Process- Tobacco, Firearms, Alcoholic Beverages
Special funds – Conversion of gasoline to natural gas cars
World Bank step- Granting US $ 51 M to socio-environmental and
corporate governance improvements
Micro-Finance- for very poor to raise std of living
Influencing suppliers- multiplying ideas and practices ( shocked with
meeting better practices Vs commercial relationships) stress on CSR
Idea was not a black book but a white book to stimulate good
practices regarding HRM
Shaping the culture inside the Bank
• 3 R’s Campaign
• Impacts onwater,energy,and paper
• Role of top Management?
• Environment week in June 2002
• Recycling paper and its Impacts?
• Measures to save water and energy
• Employees diversity in the Organization
Results and Challenges
The continuous progress helped them to held 4th largest privatelyowned bank in Brazil and 3rd major market for parent company.
78% of current client were completely satisfied and 21% of people
interviewed had 1st preference for BANCO if they chose to leave
Employee satisfaction was high up to 95% in 2003. Also was 2nd in
banking list on Carta capital magazine.
Continuous need for innovation was the key to lead also long term
conscience than a short term orientation.
Customer centric approach was crucial along with openness and
transparency for better position.
Vision of BANCO Real and parent company need to be aligned so
that disagreement would not exist.
Balanced approach between bank’s capacity to avoid any financial
risk and for sustainable wing.
To analyze the various activities going hand in hand and the impact
on the business progress.