Bradesco Will Continue To Scale Back Its Branch Network As Luiz Carlos Trabuco Takes Over As Chairman Of The Board

Banco Bradesco is facing a huge challenge. More Brazilians are using the Internet to bank, and that means local bank branches are becoming a liability instead of an asset. The 91-year-old chairman of the bank, Lazaro de Mello Brandão, is retiring, and the new chairman will have to close many of those branches in order to keep shareholders happy.

The new chairman is Luiz Carlos Trabuco, a longtime bank executive and the current CEO of the bank. Trabuco is the 66-year-old banker responsible for bringing the bank into the digital age. But even though the bank has 60 websites and several online banking programs, Trabuco and his new CEO will have to create more online programs to keep Millennials from jumping ship and banking with Itaú Unibanco. That’s why the next CEO will come from Trabuco’s executive team. The personable CEO and chairman wants to work with someone he knows and trusts. And he needs someone with IT experience. The online push for new products and services is a priority, and that is why some bank employees think 58-year-old Mauricio Machado de Minas will get the job.

Mauricio Machado de Minas has a lot of IT experience. He is responsible for developing the digital-only bank spinoff. Bradesco calls that spinoff, Next. But even though Mauricio Machado de Minas is the top pick, six other qualified Bradesco employees are also candidates. Bradesco’s human resource manager, Andre Cano is one of those candidates, and the president of Banco Seguros, Octavio de Lazari is also one of the seven. Banco Seguros is the insurance arm of the bank. Trabuco knows a lot about that division. He was president of the insurance division for five years.

Read more: Bradesco to Choose Board Member as New President, says Trabuco

But the dark horse in the race for the CEO position may be Josué Augusto Pancini. Josué Augusto Pancini is the Vice-President in charge of the bank branches. No one knows what branches to keep and what branches to close better than Pancini. But there is talk about the bank’s chief lending officer, Domingos Figueiredo Abreu. Interest rates are coming down, according to the Central Bank, so Abreu could help Bradesco navigate the new lending programs the government is pushing. But the main investment Vice-President, Marcelo Noronha is also a candidate. Bradesco needs a CEO that can attract foreign investors and keep Wall Street happy. Some bank insiders think Marcelo Noronha would be a great CEO because of his investment connections.

The new CEO will take over after the annual shareholders meeting in March 2018. Trabuco will make the announcement 30 days before the meeting. Trabuco will have help making that decision. Lazaro de Mello Brandão may be losing the chairman title, but he will still have a desk and a say in who gets the CEO role. The bank’s Board of Directors will also cast their votes for the new CEO.

Luiz Carlos Trabuco is one of those banking executives that can’t stay away from the action. Trabuco likes to interact with clients. His philosophy and psychology background helps him relate to the 26 million people who use Bradesco’s products and services. Luiz is a longtime Bradesco employee. In fact, the only banker executive who has more experience with the bank is Lazaro de Mello Brandão. Brandão was a bank trainee when the bank opened 74 years ago, and Trabuco was a trainee in 1969. Both men went through the bank’s training program and they did what few people can do. They were smart enough to reach the top of the Bank’s hierarchy. Both men are loyal, honest, and trustworthy bankers, who understand the value of commitment. Those qualities are rare in Brazil’s banking business.

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