Expects to expand the services in more than 1,500 municipalities throughout Brazil
Banco do Brasil, a Brazil-based bank, and Banco Lemon have entered into a partnership whereby Banco do Brasil expects to expand its correspondent network countrywide by 70%.
As per the partnership adopted, companies that presently have correspondent contracts with Banco Lemon may contract with Banco do Brasil directly. Such contract grants Banco do Brasil exclusivity in the correspondent business with those companies. Thus, Banco Lemon will no longer operate in the correspondent business directly and will focus its efforts on the corporate credit area, with emphasis on corporate credit, middle market and structured transactions.
It has added that this business may imply the migration of nearly 6,500 correspondents to Banco do Brasil, strengthening its presence in more than 1,500 municipalities throughout Brazil.
Initially, the correspondents that will be contracted by Banco do Brasil will continue to provide services for the payment of sundry accounts and bank bills and will. Additionally, the correspondents will now also make payments to INSS beneficiaries who receive their pensions through Banco do Brasil. They will also be able to operate in consigned credit and it is expected that they may make available, at a subsequent time, statement and current account withdrawal services.
Banco Lemon operates through correspondents in the offer of sundry payment and receipt services. Its operational strategy is based on the provision of banking services to the low-income population.