Category: Banking Industry

Bradesco Bank Witnesses Change In Leadership, Trabuco And Lazari To Take Over

The much-awaited announcement to the change in management was finally made, during which Bradesco Bank’s Luiz Carlos Trabuco gave out the name of the President that would be taking over the bank. Octavio de Lazari is the person that will be taking over the company, and he will be able to fully start performing his functions after the annual shareholders meeting has been held. He will replace Trabuco as the President, along with his seat on the board of directors. The meeting is set to take place on March 12th.

The change in leadership that Bradesco is now conducting commenced when the previous chairperson at the company retired, making Trabuco the new chairman of the company. However, Trabuco previously stood as the President of the company, which caused his position to thereby be left vacant, which will now be filled out by Octavio de Lazari. Bradesco was required to make an announcement of the new President thirty days before the shareholders meeting so as to notify all those who would be attending. Until the meeting has commenced, Trabuco will still have to carry out the position of President, along with his new role as the Chairman of the company.

Even though it may seem like Trabuco has had a lot resting on his shoulders for the past few months, it has been something that the board knew he would be capable of. Trabuco has spent his entire professional life working at Bradesco for almost 40 years and knows the company inside out. He understands every aspect of Bradesco and what is needed for the development of the bank.

Trabuco was first asked to take over the position of President of the company in 2010, during which Bradesco stood as the second largest private bank in Brazil. Getting the company back to the number one spot was an essential goal for the company, but Trabuco decided to shift his focus towards development of all the services that the bank offers to the customers who come to them. During this time, the number of Bradesco outlets throughout Brazil grew significantly, and the company once again rose to the number one spot in the banking industry. There is no doubt that Trabuco’s contribution to the company is immense and is bound to improve as he takes on the position of chairman of Bradesco.

Trabuco and Lazari both have a lot of things in common in terms of professional development. For one, both the leaders started working for Bradesco when they were just teenagers and started working for the company as bank tellers. Both the executives also served as the CEO of Bradesco Seguros at one point and were essential for the growth of the company as a whole.

During the past few months, there has been a lot of speculation throughout the Brazilian economy about who the president of the company might be. There were a number of candidates who were eligible for the position, but Bradesco’s board of directors saw Lazari as the person who was most fit for the job.

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With Trabuco As Chairman, Will Bradesco Become A Banking Monopoly?

Throughout the history of Latin America, the monopoly has played a central, in not entirely wholesome, role. But while even the most ruthless robber baron monopolists of the 19th century could make plausible arguments as to why their businesses were a public good as constituted, the truth is that many monopolies of Latin America have demonstrably made the lives of the average citizen better. Companies like International Telephone and Telegraph, the United Fruit Company and Telmex, while having a stranglehold on their respective markets, brought first-world infrastructure to otherwise backwards and hopelessly primitive societies. Whereas there is little question that the railroads of North America would have eventually stretched from coast to coast and perfused much of the interior, with or without the likes of Stephen J Gould or the Vanderbilt clan, there is a serious case to be made that, without the likes of Telmex, there would simply be no telecommunications at all in the rural parts of Mexico, areas that are often still under the control of Amerindian warlords, such as Comandante Marcos.

Brazil may get a banking monopoly

This leads us directly to the case of Grupo Bradesco, the largest banking conglomerate in Brazil. Its leader for the last decade has been a man named Luiz Carlos Trabuco. Trabuco is an inveterate and sophisticated banker, holding advanced degrees from one of the top schools in Brazil. He has also made it abundantly clear, through deeds, if not words, that his vision for Bradesco is to have it become the undisputed hegemon in the Brazilian banking space. In short, everything Trabuco has ever done in his career indicates that he has every intention of crushing all competition into oblivion and establishing a Brazilian banking monopoly.

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Whether or not this would ultimately be good for Brazil is a matter of debate, with both sides being able to make reasonable points. What is not in dispute is that Trabuco is well on his way to establishing Bradesco as the unquestioned dominant player in Brazilian banking. With the acquisition of HSBC Brazil in 2015, the $5.2 billion cash deal rocketed Bradesco back to the number-one spot in the Brazilian banking sector, a spot that the bank had not held since 2009. Since 2015, the bank’s stock price, long in decline, has soared, indicating that investors are extremely pleased with the strategy that Trabuco has followed. The bank has continued to attack its competition, especially arch rival Itau Unibanco, in all its markets. It is now in a position where it can easily leverage its economies of scale to crush its competitors, pricing them out of the market and undercutting them at every turn.

Although some may argue that a Bradesco that utterly annihilates its competitors, leaving it as the last bank standing, would be a net negative for the country, it is worth remembering that Brazil is still a quintessentially Latin American country. One feature of this Latin American-ness is the fact that the country still has a large number of citizens who are not able to connect online or even operate a computer.

In Bradesco’s own internal studies, it was revealed that approximately 13 million of the bank’s 27 million customers had no access, whatsoever, to internet banking facilities. The bank itself has undergone a campaign to bring both financial and technological literacy to its customers. There has even been talk of the bank providing all of its underprivileged customers with mobile devices, such as Androids or iPhones, in order to allow them to access the much more efficient internet banking options that the bank has on offer.

Learn more about Luiz Carlos Trabuco: https://www.terra.com.br/economia/trabuco-assumira-presidencia-do-conselho-do-bradesco-banco-nomeara-novo-chefe-executivo-em-marco,9fb1d7fe927d7f26678a7543f82f02edw3u6oihm.html