Ademar Schardong is the CEO of Sicredi. The credit union system was regarded as the one of the best authors of economic projections in Brazil. In an exclusive interview to IntelligentHQ, Schardong says that the South American country will be able to maintain the growth of its agriculture, despite a slow down in China.
Schardong also defends the role of credit unions and “cooperative banks” as economic models for the society. He revealed details and explained the Sicredi Bank purchase made by Rabobank. According to him, the Dutch bank shares similar long-term interests with Sicredi.
IntelligentHQ – What's behind the successes of Sicredi and the significant number of members?
Ademar Schardong – Our successes are linked to our model of economic organization, the credit union system. In just five years, Sicredi has registered an increase of 100 percent on its base of members. Currently, there are two million associates distributed in 10 Brazilian states. More and more, people are discovering the power of cooperation.
The credit unions have been signed with the financial market as a more inclusive, participatory and fair, acting as an instrument of economic organization of the society. It promotes the economic and social development of its regions. The results of a credit union are transferred to their members, business owners, in proportion to the volume of its operations and reinvested in the place where they live, strengthening the region's economy. The UNO has recognized the importance and declared 2012 the international year of credit unions.
IntelligentHQ – Sicredi always highlights that it is a system of credit union, which owns a cooperative bank. Why this distinctions are so important?
Schardong – Sicredi is a system of credit unions. Currently, there are 114 credit unions, integrated horizontally and vertically. The horizontal integration represents a network of service units, distributed in over 905 municipalties. In the process of vertical integration, the credit unions are organized in four Central Unions – shareholders of Sicredi Participações S.A -, a Confederation, a Foundation and a cooperative bank. All these entities act in the market under the brand Sicredi and adopt a unique pattern, adding to its image solidity, credibility, and also scale gain.
The Sicredi Cooperative Bank is the instrument of access of credit union to the financial market and financial programs. It administrates in scale the resources and develops products and corporate services, policies of communication, marketing, and human resources management. It controls an insurance brokerage, the cards administrator, and the consortium administrator. It also works with risk management.
IntelligentHQ – Which are the most demanded services? What role do they play?
Schardong – Sicredi is a solid institution, where people and companies have access to financial services and products. We have a wide portfolio, with checking account, savings account, credit cards, debt, investments, insurances, consortiums, and private pensions. In addition, we have facilities like ATMs and services through the internet.
In addition of attending different necessities of members, the usage of products and services contribute to the results of the credit unions, its members, and the community where it operates.
One of the main services is the rural credit, where we have a strong presence. With the release of over R$ 5.21 billion in the Plano Safra (Harvest Plan, government program) 2011/2012, Sicredi has hit a record in the release of resources under a Plano safra, placing in the fourth position among the biggest agents in Brazil.
IntelligentHQ – Sicredi was recently recognized as one of the best authors of economic projections in Brazil. How are these estimations made?
Schardong – The ranking's goal is to reward the institutions which the projections of economic indicators of the country got closer to the reality. In order to achieve it is necessary to be precise and consistent in the projections of most diverse economic variables, introducing an index of hits overcoming other financial institutions, education institutions, or consultancies of the country. This recognition demonstrates the technical differential of Sicredi's staff.
IntelligentHQ – What's the projection of Sicredi for the Brazilian agriculture in the next years? Some analysts are worried with a slow down in China and a reflection on the price of food. Is that a likely trend?
Schardong – The scenario is positive for the Brazilian agriculture in the next years. Even with a slow down in the growth of China's economy, there is a strong process of urbanization in that nation, which results in a change in the habits of consumption of that population. The consumption of animal protheyn gows quickly, mainly pork, milk and dairy. In order to meet consumption level, it is necessary to transform an additional volume of soybeans and corn in animal feed, so Brazil has a prominent place supplying these inputs.
We hope that in the following years we have a regulation of the world's final stocks of grains and, therefore, a reduction of quotes. However, it has to be maintained on levels historically elevated. Additionally, the gains in the Brazilian agriculture also happen on the side of productivity and efficiency, reinforcing the positive scenario for the sector.
And, finally, important investments are ongoing in Brazil in terms of logistical infrastructure, which must facilitate and reduce the cost of transportation of grains, where the targets are the exports improving the Brazilian competitiveness.
IntelligentHQ – What has been the role of Rabobank since it bought a stake on Sicredi's bank?
Schardong – The partnership with Rabobank is a strategic relationship of long-term between both institutions, that are deeply focused on the development of credit unions as a model of economic organization in the society. Rabo Financial Institutions Development B.V. (RFID) – the development arm of the Dutch group – has a 24.91 percent voting share on the Sicredi Bank, and SicrediPar has 75.09 percent.
One of the co-operations is the Program of Technical Assistance, which aims at exchange of abilities and expertise between both institutions. Through this program, the Rabobank experience is being used to benefit the strategic planning of Sicredi.
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