Luiz Carlos Trabuco was born in October of 1951 in Marilia, Sao Paulo, Brazil. Amador Aguiar founded Banco Bradesco in Marilia, the same town Mr. Trabuco would be born in less than a decade later, in 1943. Mr. Aguiar would serve as the financial institution’s president through 1981, unarguably one of the longest tenures as President of a bank in Brazil, if not South America, or the entire world.
Aguiar had a dream to treat every customer and client the same in all possible regards, even in communication efforts and means of marketing and promotions. While Bradesco’s executives and employees, from the top all the way down to entry-level positions like bank tellers and clerks, treat all patrons with an equally high level of respect and lack of discrimination, Mr. Trabuco’s tenure as the Director of Marketing changed how the financial institution researched target customer demographics, how to interact with certain types of patrons, and more. This unarguably led to an uptick in performance, as segmenting and targeting is a staple in modern marketing efforts.
The above is just one example of the many instances in which Mr. Trabuco beefed up the operational protocol, size, and ultimate level of success experienced by Banco Bradesco. Arguably the most recent endeavor of Mr. Luiz Carlos Trabuco that returned an artificially high level of success was him urging the ranks of Banco Bradesco to absorb the assets of HSBC Brazil, a banking organization with headquarters overseas in London, England.
After purchasing the entirety of its assets related to banking and financial services throughout hundreds of locations in Brazil – rural, urban, and metropolitan alike – for an astoundingly high $5.2 billion US Dollars, Bradesco experienced approximately six years’ worth of organic growth, according to a presser released by Mr. Trabuco weeks after the deal was finalized in the early months of 2016. While many organizations acquire and merge with other entities, Mr. Trabuco looked into several specific characteristics of the then-potential transaction.
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HSBC Brazil had been underperforming for a number of months, if not years, prior to it becoming available for sale in 2015. The network of banks, automated teller machines, and everything associated with the two ranked HSBC as one of the ten largest banks across the entire country of Brazil. While it might not have made much sense to purchase a small, local bank or nexus of banks, the sheer size of HSBC Holdings’ Brazilian banking buildings, machinery, camera networks, and other concrete assets made the transaction entirely worthwhile.
Another important reason why Bradesco went through with the acquisition was that financial institutions often acquire the assets of or merge with one another. Seeing as this is commonplace in banks, of which Brazil has many that are in close competition with one another, it was more than possible for another financial institution to hop on board with the deal, gaining a sizable amount of growth by simply purchasing it with stock, cash, or a combination of the two. It’s important to keep in mind that Itau Unibanco, the largest bank in Brazil since 2008, was formed as the result of a merger between Unibanco and Banco Itau, both of which were already among the top ten financial institutions by size in the country. As such, another large bank could have wedged its way into second place by size in Brazil. It made sense for Bradesco to block the potential enlargement of another financial institution that could have potentially rivaled the size of Banco Bradesco.
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