Corporate Strategy

Banco Votorantim aims to consolidate its position among the three main privately-held Brazilian banks, and to get recognized for its guidance in sustainably serving clients and partners through long-term relationships, as well as leveraging synergies with Banco do Brasil (BB). For such, BV has a diversified business portfolio composed of Wholesale Bank, Wealth Management and Consumer Finance, with well defined goals:

 

Consumer Finance Businesses

The core business of Consumer Finance is Auto finance, in which the Bank operates through the subsidiary BV mainly in the used auto finance market (multi-brand dealers), in which it has history of leadership and recognized expertise. Its competitive differentials include: (i) expertise in pricing, concession of credit and credit collection, (ii) high capillarity through extensive network of outsourced distribution (around 18 thousand resales of vehicles), (iii) agility in decision-making (approximately 90% of the proposals of credit are decided on automatic basis), and (iv) quality of the relationship with resales.

 Using the client base of Vehicles, the Bank seeks to diversify its sources of revenues through the cross-selling of credit cards and insurance, both products with well-defined strategies:

  • Credit Cards: to increase the volume of active cards – issued with the brands MasterCard and Visa – through cross-sell for the current client base of auto finance, as well as offering to clients of commercial partners, such as the rewarding program Netpoints.
  • Insurance brokerage: through the subsidiary Votorantim Corretora de Seguros, the Bank aims to increase revenues from insurance brokerage. Besides continuing growth in insurance such as Auto and Credit Insurance, the Bank has also been diversifying its portfolio, which currently includes capitalization and other insurance products, such as life, residential, personal accidents etc.

 In addition, the Bank has specific strategies for other loans and financing products:

  • Payroll credit: to maintain an important position in the market of payroll loans, focusing on Private categories (organic portfolio growth) and INSS – National Institute of Social Security (refinancing of portfolio). In addition, the Bank has been seeking to increase revenues from commissions of Promotiva S.A., joint-venture with BB which is mainly engaged in the origination of payroll credit (types Public and INSS) directly to the shareholder. Promotiva operates outside the branch network of BB, as a complementary distribution channel.
  • Other businesses: to diversify sources of income through businesses such as individual loans - partnership with fintechs (e.g.: Guia Bolso and Neon Pagamentos) and cross-sell to BV’s clients; Student loan - partnership with Ideal Invest and Kroton; Home Equity and Financing for acquisition of residential solar power panel - partnership with Portal Solar, the largest digital market-place of the sector.

By means of long-term, commercial and agile relationships, and efficient capital management (risk/return ratios), the Corporate provides integrated financial solutions adequate to its clients’ needs. With a diversified product portfolio, the segment's focus is to grow in companies with annual revenue from R$ 300 million to R$ 1.5 billion, increasing spread and cross-selling. In the Large Corporate segment – companies with annual revenue above R$ 1.5 billion – the focus is to increase the profitability, especially through unfunded products.

Wholesale Bank Businesses

With a diversified portfolio of products, agile and flexible service and sectorial expertise, the Wholesale Bank serves economic groups with minimum annual revenues of R$ 300 million, which are internally grouped in two sectors. In the Corporate sector - companies with annual revenues up to R$ 1.5 billion – the focus is to expand the base of active clients, dispersing the risk (lower average ticket) and increasing the average spread and cross-sell of high value-added products such as derivatives (hedge), structured products, DCM (Debt Capital Market) and FX. In the Large Corporate segment – companies with annual revenues above R$ 1.5 billion – the focus is to increase the profitability, especially through unfunded products (guarantees).

Wealth Management Business (VWM&S)

To develop and provide the best solutions for wealth management in a sustainable manner is part of Wealth’s mission, which has well established strategic objectives for the two different markets where it operates:

  • Asset Management: to be recognized for its consistent performance and for developing appropriate solutions to the clients’ needs by means of its innovative and differentiated capacity for restructuring and managing high added value products. Votorantim Asset Management (VAM) holds an important position within its peer group (Assets without branch network structure) and has its partnership with BB structure, management, administration and distribution of investment funds; and
  • Private Bank: to consolidate its position among the best private banks in the market, by expanding its operations in integrated wealth management through differentiated solutions.

For further information, check out the Earnings Presentation.


Updated on May 10th, 2018