As Latin America's oldest bank, Banco do Brasil is leading a new era of growth through innovation, sustainability, and international expansion. At the heart of this evolution is Daniel Bogado, Managing Director of Global Treasury, driving strategic initiatives that are transforming financial performance, risk management, and ESG-driven finance.

In this exclusive interview with Global Banking & Finance Review Editor Wanda Rich, Bogado unveils the vision behind Banco do Brasil's most significant moves — from the pioneering "Triple Sustainable Repo" deal to its deployment of AI-driven compliance solutions. Discover how Banco do Brasil is redefining treasury operations to accelerate global growth, sustainability, and financial resilience.

Banco do Brasil has demonstrated impressive growth across various sectors. What are the key strategies driving the bank's overall performance?

To ensure sustainable and robust growth, Banco do Brasil adopt strategies that encompass several crucial areas. We see as main premises that should guide these strategies: Costumers, Financial, ESG, Digital Transformation and Process, and People and Culture.

For customers, Banco do Brasil is focused on providing the best experience at all times. This involves investing in continuous training for the service team to ensure that each customer interaction is positive and resolutive. Additionally, using data and analytics to offer personalized products and services aims to meet the specific needs of each customer. Expanding and improving communication channels, including in-person, phone, online, and mobile app services, ensures that customers can access the bank conveniently and efficiently.

From a financial perspective, creating value and generating sustainable results is essential. BB has rigorous risk management policies to protect the bank’s assets and ensure financial stability. Additionally, it is constantly developing new financial products and services that cater to different market segments to diversify revenue sources. Optimizing internal processes to reduce costs and increase efficiency also allows the bank to offer better conditions to its customers.

In terms of environmental, social, and governance (ESG) aspects, Banco do Brasil is highly committed to sustainability and promote ESG businesses. Adopting practices that minimize environmental impact, as well as supporting our clients in transitioning to a more sustainable, diversified, and inclusive portfolio, is crucial. Investing in projects that benefit the community, such as financial education programs and support for small businesses, demonstrates social responsibility. Maintaining high standards of transparency and ethics ensures that all bank operations are conducted responsibly and in compliance with regulations.

For digital transformation and processes, we understand that the evolution of the way of working is fundamental to accelerate digital transformation and innovation. Investing in new technologies, such as artificial intelligence, can improve the efficiency and security of banking operations. Implementing automation solutions for repetitive tasks frees up employees to focus on higher-value activities. Thus, BB seeks to promote a work environment that encourages innovation and experimentation, allowing new ideas to be tested and implemented quickly.

Finally, in relation to people and culture, it is vital to engage people with the bank's values and promote collaboration, respect, and inclusion. We offer training and professional development programs for employees, ensuring that they are prepared to face the challenges of the banking industry. We also aim to promote an organizational culture that values diversity and inclusion, ensuring that all employees feel valued and respected. And lastly, we strive to implement initiatives that promote employees' physical and mental well-being, creating a healthy and productive work environment.

With a focus on these strategies, Banco do Brasil seeks to position itself as a leader in the sector, ensuring sustainable growth and the satisfaction of all stakeholders.

How does Banco do Brasil balance its domestic and international priorities, and what challenges have you faced in aligning these goals?

Banco do Brasil conciliates its domestic and international operations to fully serve its clients, integrating its businesses in Brazil and worldwide. A good example is the integration of BB and BB Americas accounts in the PF app, which is entirely customer-focused, offering a value proposition that includes differentiated bundled services, competitive rates, and personalized digital experiences.

BB’s current strategic focus on international business follows three main fronts: Brazilian Foreign Trade - International Business and Investments, foreign currency funding, and integrated service with networks in Brazil, aiming for a better customer experience in their international journey.

Among the goals of BB’s international operations, the increase in the number of transactions carried out through digital channels, as well as the number of clients using current accounts abroad, stands out.

BB has a specialized team and structures in Brazil responsible for foreign exchange, foreign currency, import and export operations, as well as specialized advisory and consultancy services. Abroad, we have units that aim to maintain proximity to Brazilian clients who work or have operations in the world’s main financial centers.

In Brazil, the Foreign Trade Offices have in their portfolios individuals and legal entities from all segments (SMEs, Medium, Corporate, and Large) and are located in 52 locations across the country. Regarding BB’s individual clients abroad, we have branches overseas to offer comprehensive and value-added service. For advisory and service to corporate clients, we also have structures in the main financial centers of the world: New York, London, Tokyo, Shanghai, Frankfurt, Asunción, and Lisbon.

Our external network consists of 9 branches located in 7 countries. Additionally, we maintain agreements with other financial institutions abroad to serve our clients. Countries with BB S.A. branches: United States, Paraguay, Cayman Islands, United Kingdom, Germany, China, and Japan.

Regarding the challenges faced, we can primarily cite the different regulations and technological protocols of the countries, as well as fintechs and new entrants competing in the dollar account market.

BB has stood out as a fundamental partner to support the international expansion of clients, offering services and products that go beyond financial.

Banco do Brasil’s Global Treasury is leading in innovation and efficiency, what role have data analytics and technology played in enhancing risk management and driving performance?

In today's landscape, modernizing bank treasury processes is essential to adapt to digital transformation and maintain competitiveness in the financial market. The treasury, responsible for cash and liquidity management, treasury operations, and financial portfolio management, must harness the potential of Artificial Intelligence (AI) and analytics tools to boost financial institution results and enhance risk controls.

In a bank treasury, the reliance on granular and accurate data, coupled with the necessity for strict governance to ensure data quality and compliance, presents significant challenges. Decision-making based on predictive analytics demands a profound overhaul of existing processes.

The results achieved with the implementation of the digital transformation project for bank treasury were remarkable. Operations became more efficient, secure, and aligned with business needs. By creating a robust data lake containing granular data on all traded financial instruments, the institution improved information accuracy and integrity, ensuring effective data governance and regulatory compliance. This enabled a holistic view of financial risks, allowing for more agile and assertive management.

How is Banco do Brasil integrating AI and digital solutions to improve compliance, customer service, and operational efficiency?

Banco do Brasil has built its legacy in Artificial Intelligence and Analytics based on its values, ethics, responsible use, and governance of data and models, without neglecting innovation. The bank’s digitalization began ten years ago with the implementation of Big Data strategies and the creation of a team dedicated to data-driven strategic decisions.

BB is making significant progress in its journey to integrate Artificial Intelligence (AI) and generative AI into its processes. The focus is on using advanced technologies to optimize operations and provide an enhanced experience for its customers.

Through analytical models and the use of AI, it is possible to analyze customer behavior across digital channels, offering them products and services that meet their needs and are aligned with their current life stage, in the channel of their preference.

Generative AI is also being used to improve customer service efficiency. AI-powered chatbots and virtual assistants can respond to customer inquiries quickly and accurately, 24 hours a day.

BB also use Artificial Intelligence (AI) tools to strengthen its systems defenses and promote a safer digital environment for our customers. AI has revolutionized the way threats are prevented, detected, and responded to. We believe that cybersecurity and information security are crucial to our customers’ experience and trust, as they act as a protective shield, defending digital assets, production processes, and intellectual property against constantly evolving virtual threats.

The finance and treasury areas of Banco do Brasil have also made significant progress with the application of analytical models and AI. By using real-time data and models, these areas are optimizing portfolio management and price personalization, allowing for agile responses to market fluctuations. This innovative approach improves decision-making accuracy and efficiency, promotes process automation, reduces operational risks, and allocates resources to strategic activities. Hyper-personalization of prices benefits both the commercial strategy and the customer experience, enhancing the bank’s competitiveness.

The people pillar remains an important focus in this process, which is why Banco do Brasil has been heavily investing in these technologies and in training its employees on these topics. By prioritizing the dissemination of a data-driven and AI-oriented culture, BB encourages the evolution of analytical maturity and creates opportunities for reskilling and upskilling employees. In this regard, the Bank launched AcademIA BB in June of this year, a training program aimed at showing in a simple and straightforward way that Artificial Intelligence and Analytics are for everyone. The program already has more than 20,000 enrollees and adopts a learning approach that covers all levels of knowledge, offering a project-based learning journey focused on real day-to-day challenges related to the following thematic areas: AI and Data Science, Data Engineering, DataViz, and Web Analytics. BB believes that by democratizing Artificial Intelligence and Analytics and encouraging their competent use, it can accelerate the learning curve and optimize the development of solutions throughout the organization.

Regarding regulatory compliance, one of the fundamental pillars for any financial institution, the application of AI allows for the automation of verification and monitoring processes, ensuring that all operations comply with current regulations. AI solutions can analyze large volumes of data in real-time, identifying patterns and anomalies that might go unnoticed in manual analyses. This not only increases accuracy but also reduces the time and costs associated with compliance.

With the growing adoption of AI, it is essential to reinforce governance processes to ensure that models meet the guidelines defined by the organization, including ethics, privacy, and responsibility. It is also important to ensure that the models meet the business objectives, mitigating risks and maximizing value generation. To this end, BB has a set of processes, ranging from the governance of the data used in the models to the implementation of AI models in production. In data governance, BB has been continuously evolving in the Data Governance Maturity Index (IMGD), an indicator through which BB is evaluated in its maturity in data processes, a fundamental aspect in monitoring AI models.

Since 2021, the AI Ethical Guidelines have been included in BB’s Code of Ethics. Recently, they were updated to ensure that the solutions, systems, and models implemented provide accurate information, are reliable, secure, robust, and contribute to sustainable development, acting responsibly, with respect for diversity, privacy, and non-discrimination.

Banco do Brasil recently made headlines with the “Triple Sustainable Repo” transaction. Can you elaborate on the significance of this deal and what it represents for the bank’s commitment to sustainable finance?

This is an unprecedented bilateral transaction globally, that shows our passion to innovate and find value-adding solutions, raising USD 100 million through the “Triple Sustainable Repo” structure with the French bank Natixis Corporate & Investment Banking. The objective was to execute a robust financial transaction with real-world impact through sustainability. This operation is the first of its kind to combine three sustainable elements in a single transaction and is part of BB’s Sustainability-Linked Debt Frameworks and the sustainable commitments undertaken by BB linked to the 2030 agenda.

The funds raised will be used to refinance BB’s sustainable credit portfolio, focusing on social housing projects. Additionally, BB has committed to increasing its investments in sustainable businesses, aiming to reach BRL 320 billion by 2030.

The transaction also utilizes the Sustainable Public Bond issued by the Brazilian Government as collateral, reinforcing BB’s commitment to sustainable practices.

Thus, the transaction was innovative and presented three sustainable aspects, represented by the sustainable public bond as collateral, the application of funds in sustainable housing operations, and the linkage to the growth of BB’s sustainable businesses.

Looking forward, what are the key challenges and opportunities Banco do Brasil anticipates in adapting to regulatory changes and advancing its sustainability agenda?

We used to say that sustainable companies are those that are more capable of identifying and managing risks and opportunities in the social, environmental, and economic dimensions, generating long-term value for stakeholders, and prospering.

As some of the challenges, we can mention the lack of sufficient resources at acceptable costs for rural producers, i.e., at the levels operationalized by controlled resources to enable the expansion of low-carbon agriculture. Additionally, there is a growing need for more rural technical assistance, especially for small producers, aiming to increase productivity and adopt sustainable practices. In forest restoration, we face challenges such as the lack of technical training, the structuring of the forest restoration production chain, high implementation costs, competition for credit limits, and payment capacity compared to productive activities, as well as economic and financial viability. Equally important is the need to advance the evaluation of the Rural Environmental Registry (CAR), so that producers can engage in State Environmental Regularization Programs. In the Bioeconomy, for example, we identify a lack of technical assistance that fosters the commercialization of products and integration with companies that can industrialize and expand production, thus facilitating access to credit.

To turn challenges into opportunities, BB is cooperating with Multilateral Banks, NGOs, and Governments, creating alternative instruments and conditions to overcome these obstacles and generate positive socio-environmental externalities. We can mention the Bioeconomy Program with the Inter-American Development Bank (IDB) and the recent launch of the Finance Hub for Sociobioeconomy, the Climate Finance Initiative, in partnership with the World Bank, which aims to support Brazilian companies in decarbonizing their value chains, in addition to the Amazon and Cerrado Biomes Project, approved by the External Financing Commission in the last week of September, focused on bioeconomy, forest restoration, and recovery of degraded pastures.

As an example, at the end of September, we participated in Climate Week in New York, promoting this agenda beyond Brazil’s borders through partnerships and fundraising. I would like to highlight an unprecedented fundraising operation of US$ 800 million (R$ 4.36 billion). This operation, guaranteed by the Multilateral Investment Guarantee Agency (MIGA), part of the World Bank, was carried out in conjunction with JPMorgan Chase Bank, Standard Chartered Bank, HSBC Bank, and Crédit Agricole.

The funds obtained will be used to support small and medium-sized farmers who use the low-carbon agriculture technique known as no-till farming. This amount is sufficient to avoid the emission of 11.8 million tons of greenhouse gases, in addition to promoting the conservation of one million hectares of land over ten years.

Thus, we are committed to reaching R$ 200 billion in sustainable credit for agribusiness by 2030. These operations bring positive social and environmental externalities and are part of BB’s commitment to the climate agenda.

Specifically, regarding regulatory changes, it is important to recognize the robustness of ESG regulation in Brazil, although these parameters must be constantly evolving and improving, as exemplified by the European Union - a reference in sustainable practices - which recently made reforms, including a new regulatory framework. In this sense, several actions have been taken here in Brazil to ensure greater transparency and raise governance levels in sustainable businesses, such as CVM Resolution No. 14, which requires companies to disclose, in their annual reports, the social, environmental, and governance impacts generated by their activities, or Central Bank regulations that impose on financial institutions the commitment to integrate socio-environmental risks into their risk policies. Positively speaking, adapting to regulatory changes is part of our commitment to always adjust to offer greater integrity in business, not only as a way to meet increasingly higher levels of criticality, compliance, and demand from investors, but, above all, for being an institution that positions itself at the forefront, always aiming to align with best practices and encourage the market to structure itself under increasingly robust and transparent ESG measures.

We are leaders in sustainability and remain dedicated to supporting our clients in transitioning to a more sustainable, diversified, and inclusive portfólio. We will continue to improve our internal practices and influence companies and institutions in our ecosystem to adopt this transformation trajectory.

Reflecting on your leadership, what are you most proud of in Banco do Brasil’s recent achievements, and what advice would you give to other leaders navigating similar transformations?

As a leader, one of the things I am most proud of in Banco do Brasil is our ability to innovate and evolve over more than 200 years of history. We are a market-leading brand, recognized for our solidity and the trust we instill in our clients. Additionally, our historical results reflect our commitment to excellence and sustainability.

What makes me most proud is seeing how we balance tradition and innovation, maintaining our core values while adapting to market changes and our clients’ needs. Our dedication to providing high-quality services and promoting sustainable practices is something that truly inspires me.

Another point of great pride is the appreciation of our employees. We believe that our success is directly linked to the talent and dedication of our team. We continuously invest in the professional and personal development of our employees, providing a work environment that encourages growth, innovation, and collaboration. We recognize and celebrate our employees’ achievements because we know they are the ones driving our institution forward.

For other leaders, my advice would be:

Value History, But Look to the Future: Use your institution’s rich history as a foundation, but always be open to innovations and new technologies that can improve services and the customer experience.

Focus on the Customer: Put the customer at the center of all decisions. Understanding and anticipating customers’ needs is crucial to maintaining relevance and competitiveness in the market.

Sustainability and Social Responsibility: Adopt sustainable practices and promote social responsibility. This not only improves the institution’s image but also contributes to a better future for everyone.

Appreciation of Employees: Invest in the development of your employees. A well-trained, motivated, and valued team is essential for long-term success. Recognize and celebrate your team’s achievements.

Adaptability: Be prepared for changes and challenges. The ability to quickly adapt to new circumstances is one of the keys to longevity and continued success.

These principles have been fundamental to our success, and I believe they can be valuable for any leader.

Daniel Bogado, Managing Director of Global Treasury, Banco do Brasil