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Luiz Carlos Trabuco will continue to implement strategic vision for Bradesco


Luiz Carlos Trabuco, the 67 year old CEO of Brazilian banking conglomerate Bradesco, has recently announced that he will be promoted to the role of chairman of the board of directors. This latest move will mark yet another ascent up the corporate ladder of the bank, a process that began for Trabuco almost 50 years ago, when he was hired on as a bank teller, fresh out of high school.

The fact that Trabuco will continue on as the strategic visionary for the bank has major implications for the firm going forward. Thus far, nearly everything Trabuco has done throughout his career has been geared towards establishing Bradesco as the undisputed dominate player in the Brazilian financial space. If he can continue this march towards total hegemony for his firm, the shareholders have a great deal to gain. Still, some stakeholders in the company have the remains of a bitter taste in their mouth as a result of the lackluster performance of the bank during Trabuco’s first six years as CEO. But with the acquisition of HSBC Brazil in 2015, the largest such transaction in Brazilian history, all of the losses experienced in the firm’s stock price throughout the 2010s have been erased. Today, Bradesco is in the best position it’s ever experienced to impose a hard monopoly on the Brazilian banking industry.

Trabuco has been taking his firm in a monopolistic direction

Despite protestations to the contrary from Trabuco himself, everything he has ever done at the firm in a leadership capacity seems to have been meticulously planned in an effort to position Bradesco as a monopoly. Few people have been as deliberate or as ruthless in implementing policies that give the bank a decisive advantage over the competition.

For example, while Trabuco was the head of the financial planning division of the firm, he was the first one to eradicate the socialistic business model that had, up to that time, prevailed across all of the bank’s business lines. Until Trabuco became president of financial planning, the bank had used a one-shoe-fits-all philosophy for its customer service model. The products and services it offered made no effort to distinguish between clients that were of tremendous long-term value to the bank and those that were had little upside.

From studying business and the North American banking model, Trabuco knew that high-net-worth clients could be worth far more than an average banking customer. This was especially true within the realm of Brazilian banking, where the average worker often made fraction of what his American or other developed-world counterpart did.

In this spirit, Trabuco quickly moved to create a tiered banking system, with the top tiers only open to those clients that promised to deposit millions of dollars with the firm. Using the techniques of North American banks and even Las Vegas casinos, Trabuco was able to successfully devise a system that lured high-net-worth clients into the bank’s fold.

He quickly began cornering the high-net-worth client market throughout Brazil and the rest of Latin America. This added hundreds of millions of dollars to the bank’s balance sheets and was instrumental in giving Bradesco a huge leg up on its competition, at a time that was critical to the overall growth of the firm.

Later, Trabuco was an influential voice in advocating for the rapid expansion of the bank through acquisitions. This eventually gave Bradesco a size and economy of scale that it could simply force its competitors to acquiesce to its terms or drive them into oblivion through pricing them out of their own markets.

Such Rockefeller-like power moves have become mainstays of Trabuco’s game plan. For more information on Banco Bradesco visit:https://banco.bradesco/html/prime/sobre/nossa-historia.shtm

 

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