BMG is a private financial institution controlled by the Pentagna Guimarães Family. The family has been part of Brazil’s financial industry since 1930, when it created Banco de Crédito Predial S.A. (later renamed Banco de Minas Gerais S.A.), a commercial bank with products for individuals and companies.
Since 1998, the Bank has focused on payroll loans, becoming a national benchmark for this type of operation. In 2005, it was one of the pioneers in the creation of the payroll credit card.
In July 2012, BMG entered into an association agreement with Itaú Unibanco S.A. to offer, distribute and sell payroll loan products in Brazil, forming a joint venture, named Banco Itaú BMG Consignado S.A. In December 2016, the sale of BMG’s investment in Banco Itaú BMG Consignado to Itaú Unibanco was completed.
Launched in 2016, “help! the credit store” is a franchise network of credit store that has locations throughout Brazil. Focused on the retail segment of INSS retirees and pensioners and public employees, the network aims to offer a multi-service solution. In the franchises, the operation is formalized through the complete biometric profile, integrated to the operating system, which brings more security in credit quality and mitigates potential fraud. The biometric profile also allows greater ease and security for digital channel services.
Currently, BMG offers its retail clients the following: payroll credit card (BMG Card), Direct Debt Loan, both exclusive to Social Security (INSS) retirees and pensioners and public servants, digital personal credit (Lendico) and retail insurance through a partnership. For company clients, BMG offers structured financial services, derivative instruments and surety bonds insurance for medium and large companies (BMG Empresas and BMG Seguros). BMG provides fixed income investment products for all customers (BMG Invest).
Decade of 30
1930 – The Guimarães Family creates Banco de Crédito Predial S.A. (later renamed Banco de Minas Gerais S.A.), which acts as a commercial bank and offers products to individuals and companies.
Decade of 60
1962 – The acronym BMG is created.
1965 – Argento S.A. Crédito, Financiamento e Investimento is created
Decade of 70
1971 – Argento’s corporate name is changed to BMG Financeira S.A. – Crédito, Financiamento e Investimento.
BMG Leasing is created and the bank focuses on financing light and heavy vehicles, quickly becoming a leader in the sector.
Decade of 80
1985 – The BMG Financeira S.A. Crédito, Financiamento e Investimento company acquires the majority capital of the Brasilinvest Banco Comercial S.A. commercial bank, which is renamed BMG Banco Comercial S.A.
1988 – BMG Financeira becomes a multiple bank.
1989 – BMG Financeira has its name changed to Banco BMG S.A.
Decade of 90
1993 – BMG Banco Comercial S.A. is merged into Banco BMG S.A. In October, the shareholders approve the delisting of BMG and the Guimarães family makes an offer to all minority shareholders for the acquisition of the shares.
1994 – Banco BMG acquires from members of the Guimarães family the common shares of BMG Leasing.
1996 – The offer to acquire the shares is concluded.
1998 – BMG becomes focused on the granting of payroll loans to public sector employees.
Decade of 00
2001 – Creation of BMG Bank (Cayman) Limited, as a wholly owned subsidiary of BMG in the Cayman Islands.
2002 – In search of funding adjusted to its asset profile, BMG structures its first securitization program through FIDCs.
2004 – BMG is the first medium-sized bank to enter into a credit assignment agreement, diversifying its sources of funding and accessing the interbank market with a new product.
2005 – The bank becomes the leader of the payroll loan market. Bolstering its strategy and focus on the payroll segment, BMG launches the Payroll Credit Card: an international credit card, featuring direct discount on the payroll and the advantage of offering reduced interest rates compared to conventional credit cards. BMG conducts its first external funding through a eurobond issue in the MTN Programme.
2009 – BMG issues its first subordinated debt in the foreign market.
Decade of 10
2011 – BMG shareholders create a consumer credit company called BMG Money, based in Florida – United States. BMG Money offers payroll loans for US public sector employees, reflected in BMG through participation agreements entered into between BMG Money and BMG Cayman.
2011 – The Bank acquires all shares of GE Money in Brazil (currently Banco Cifra) and those of Banco Schahin (currently BCV).
2012 – In July, BMG joins Itaú Unibanco to create a new bank focused exclusively on payroll loans (Banco Itaú BMG Consignado S.A.), with BMG owning 30% of total and voting capital and Itaú the remaining 70%. In November, the Bank professionalizes its management.
2013 – Banco Itaú BMG Consignado S.A.’s operations effectively begin in February and payroll loan production levels rise, reaching record levels. In September, the Bank moves its headquarters to the city of São Paulo.
2014 – BMG announces a business unification agreement with Itaú Unibanco S.A. In counterpart, BMG increases its stake in Banco Itaú BMG Consignado’s total and voting capital to 40%.
2015 – Following the strategy of focusing on the Payroll Credit Card, in September BMG begins operating under the INSS agreement and by October already leads this market segment. With the creation of the exclusive margin for the payroll credit card for retirees and pensioners of the INSS and following the strategy of focusing on the payroll credit card, in September BMG starts to operate in the INSS agreement and in October is already market leader in this segment.
2016 – BMG launches the Direct Debt Loan: personal credit deducted from a current account, exclusively for INSS retirees and pensioners and public employees. Launch of the new distribution channel, “help! the credit store”, a franchise network focused on retail operations segmented for INSS retirees and pensioners and public employees. Creation of BMG Seguros, focused on surety bonds insurance. BMG and Generali enter into a 20-year partnership for exclusive distribution of mass insurance products. BMG concludes the sale of its 40% stake in Banco Itaú BMG Consignado.
2017 – BMG launches its BMG Invest Digital investment platform, through which it is possible to make investments 100% digitally.
2018 – “help! the credit store” franchise network becomes a Banco BMG subsidiary. A memorandum of understanding between Banco BMG and Autopass is signed with the aim of establishing a commercial partnership for the supply and distribution of Banco BMG products. BMG acquires 65% of the Pago Cartões (renamed to Granito) credit card sub-acquirer, a Brazilian technology company specialized in the segment. In October, in complement to the existing distribution channels, BMG launches its Digital Bank.