Being a bank executive puts one in a complicated position. One has to cater to the needs of all the bank’s stakeholders, which is often an impossible task. For example, some profit-generating venture may be good for the shareholders but turn out to be bad for the economy.
Faced with such decisions on a daily basis, bank executives have to be wise enough to bring conflicting stakeholders to a compromise. One executive who seems to thrive in this area is Luiz Carlos Trabuco Cappi, the current president of Brazilian bank, Bradesco. He has thus far managed to balance the interests of all the bank’s stakeholders, even where they have been conflicting.
Staying true to Bradesco’s Culture
Arguably the two greatest things Bradesco has been known for over the course of its entire history is innovation and acquisitions. Many of the now prevalent banking practices and traditions in Brazil were actually introduced by Bradesco. For instance, it was the first financial institution in the country to have its managers undertake customer service. Till this day, managers at the bank’s branches can be seen advising clients on some of the basic tenets of banking such as filling in checks. Equally, it is not uncommon to see Luiz Carlos Trabuco Cappi visiting the bank’s branches to interact with clients to let them know that they are important and valued. Additionally, Bradesco was also the first in the country to adopt some of the most crucial technologies to banking such as the computer and the credit card. Luiz Carlos Trabuco Cappi has continued this long-held tradition of innovation by being the first bank in the country to develop and environmental policy. The company’s efforts to advance sustainability were evidenced by its third-place ranking in Newsweek’s Green Rankings published in 2012.
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Since its formation in 1943, Bradesco has acquired close to 50 banks. Acquisitions have been used as the primary growth strategy by successive presidents at the bank. For example, Luiz Carlos Trabuco Cappi’s predecessor, Marcio Cypriano oversaw the acquisition of up to four banks in his short ten-year spell at the bank. Unfortunately, unlike his predecessors, Luiz Carlos Trabuco Cappi had to wait a long time before finding a viable acquisition opportunity in the industry. Consequently, while he did manage to continue growing the bank in his first few years as president, it was slow as only organic methods could be used. When he finally identified an acquisition opportunity for Bradesco, it turned out to be the most lucrative in Bradesco’s history. In 2015, Bradesco bought HSBC Brazil for approximately R$ 17 billion ($5.2 billion). As a result of the purchase, Bradesco grew from being the fourth to the second largest private bank in the country by asset value. It also took the bank’s network coverage to well over 5500, making it arguably the most accessible in the country.
Staying True to Brazil
As one of the top banking executives in the country, Luiz Carlos Trabuco Cappi has on numerous occasions used his position to assist his homeland, Brazil. For example, after a slow 2015 where the Brazilian economy fell into recession, he optimistically spoke of its recovery during the World Economic Forum in Davos in an attempt to inspire investor confidence and dissuade them from withdrawing from the country. Even the very action of purchasing HSBC’s Brazilian operation for over five billion dollars during a recession year encouraged some investors not to leave.
His contribution was also instrumental in getting Rio de Janeiro’s Christ the Redeemer Statue named among the seven wonders of the modern world. His participation in the campaign drive was highly appreciated by many in Rio and across the rest of the country.
Search more about Luiz Carlos Trabuco Cappi: https://www.brasil247.com/pt/247/economia/321974/Trabuco-Bradesco-vai-privilegiar-“prata-da-casa”-em-escolha-de-presidente.htm