1. BANCO real: Banking on
Sustainability

2. Brazil and Finance Service Industry
 Brazil’s most admired company
 Vast natural resources
 Slow down in Brazilian economy in 1980’s
 President Lula & GDP grew by 5.2% in 2004
less than $2 a day and 13 % less than $1
 Environmental Deficiencies: waste water, 40 % solid waste, poor
transportation
 Homicide rate 50 per 100,000 residents and Drug gangs


3. Banking Sector
 Federally-owned, state-owned, private Brazilian controlled and
foreign controlled banks
 Dependent on Float Revenues
 Two periods of inflation
 “Plano real” a program to control the exchange rate as an
anchor
 Came in response to international financial crises, local
interest rates increased, many international banks entered
into brazil

4. Focus on the
client’s focus
Committed and
qualified staff
Competitive
tolls
Corporate
values
Totally Satisfied
Client
Shareholder
s
Community
Employees

5. Customer and Markets: Actions at the core
of the Business
 Focus- Customer, Stressing Relationships Rather than Transactions
 Focus Goal include- Decision making, Reviewing Communications

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


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with customers
Shift in Segmentation- ( Business, Standard, Special, Premium) to
(Lawyers, Retired Persons, Dentists, Military Personnel, University
Students, Teachers, Professors & Doctors)
Breaking Relationship – Amazon, Providing Support-Harvesting
operation (With oceanographer)
Raising the stakes- Training program
Credit risk analysis- not only analyzing results but attitudes of clients
( prone to take action ) –
character, capacity, capital, collateral, conditions
Questionnaire- based on accidents, toxic treatment, cross check
Eucalyptus - 40% area, ( solves driving out of birds, animals), helps
20-25000 people benefit

6. Contd.
 Screening Process- Tobacco, Firearms, Alcoholic Beverages
 Special funds – Conversion of gasoline to natural gas cars
 World Bank step- Granting US $ 51 M to socio-environmental and
corporate governance improvements
 Micro-Finance- for very poor to raise std of living
 Influencing suppliers- multiplying ideas and practices ( shocked with
meeting better practices Vs commercial relationships) stress on CSR
 Idea was not a black book but a white book to stimulate good
practices regarding HRM

7. Shaping the culture inside the Bank
• 3 R’s Campaign
• Impacts onwater,energy,and paper
• Role of top Management?
• Environment week in June 2002
• Recycling paper and its Impacts?
• Measures to save water and energy
• Employees diversity in the Organization

8. Results and Challenges
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The continuous progress helped them to held 4th largest privatelyowned bank in Brazil and 3rd major market for parent company.
78% of current client were completely satisfied and 21% of people
interviewed had 1st preference for BANCO if they chose to leave
current bank.
Employee satisfaction was high up to 95% in 2003. Also was 2nd in
banking list on Carta capital magazine.
Continuous need for innovation was the key to lead also long term
conscience than a short term orientation.
Customer centric approach was crucial along with openness and
transparency for better position.
Vision of BANCO Real and parent company need to be aligned so
that disagreement would not exist.

9.  Balanced approach between bank’s capacity to avoid any financial
risk and for sustainable wing.
 To analyze the various activities going hand in hand and the impact
on the business progress.