Luiz Carlos Trabuco, the current CEO of Bradesco, has recently announced that he will be departing from the role that he has occupied with the bank for more than 9 years. The 67-year-old financial veteran has been operating on special waivers, which allowed him to continue working even as he exceeded the statutory maximum age for CEOs to work at the firm.
The extensions on his tenure were granted by the current chairman of the board, Lazaro Brandao, because Trabuco was the only person knowledgeable enough to complete the integration of HSBC Brazil’s assets into the Bradesco fold. HSBC Brazil had been acquired by Bradesco in 2015 in the single largest private purchase in Brazilian history. Trabuco was widely hailed as a genius deal maker for putting together the $5.2 billion acquisition, which took Bradesco from the brink of insolvency and made it a competitive bank again.
But no one had as much inside knowledge on the deal as Trabuco, so he was granted a special extension in order to fully complete the deal. This is what he has been spending the last two years doing. And from the looks of it, the project has gone extremely well. Today, the bank’s stock price is trading at nearly five times what it was at the end of 2014, and it is nearing all-time highs. This has occurred despite a dismal macroeconomic picture throughout the country and an incredibly difficult competitive environment. For these reasons, Trabuco was awarded the 2015 Isto E Dinheiro Entrepreneur of the Year Award.
Read more on valor.com.br
As chairman, it is unlikely that he will make any major changes to the bank’s current trajectory. Most of the heavy lifting has already been done. Trabuco will leave an essentially turn-key operation to his successor, who will have to do little more than focus on the day-to-day operations. On its current course, Bradesco is headed for monopoly territory, where it will be the undisputed champion of the Brazilian banking market.
Trabuco has stated that one of the most important things for the bank going forward will be to ensure that all of its customers are able to connect to online banking facilities. Brandao has agreed, with both executives noting that bringing all Bradesco customers online will pose one of the most serious challenges to the bank going forward.
Internal bank reports have estimated that 13 million of the 27 million customers of the bank have no way to access online banking facilities. These customers have been referred to as technologically illiterate, making it all but impossible to get them to use the internet banking facilities, which often allow for cost savings orders of magnitude cheaper than in-person banking. Online banking facilities also tend to lead to better overall customer satisfactions, as customers who are able to address all of their banking needs from their computers or smartphones tend to be far more productive and spend far less time on banking activities.
However, no one at the bank has specifically addressed how the 13 million customers with no access to internet connectivity may be able to become wired into the Bradesco online banking platform. There have been rumors that, sometime in the future, the bank may begin a trial promotion where customers that open certain account types are provided with internet-capable cellular devices and free internet service. While this may sound far-fetched, the amount of money that the bank could save and the number of new customers it could attract would be significant.
Although no concrete plans to this effect have been articulated by Trabuco, it is an issue worth watching as 2018 gets into full swing.
Search more about Luiz Carlos Trabuco: https://g1.globo.com/economia/negocios/noticia/sucessao-no-conselho-do-bradesco-foi-um-ato-planejado-diz-trabuco.ghtml