The Iochpe Group helped many thousands of Brazilians stay glued to their TV sets during the 1970 World Cup, the first broadcast live in full color.
In the 1960s, Iochpe began its activities in the financial segment. It was a pioneering moment heralded by new legislation that created the Brazilian Central Bank and, with that, the issue of concessions for new financial institutions. The Iochpe Group received its first bank charter in 1968, with the creation of ICREFI, Iochpe S.A.- Crédito, Financiamento e Investimentos (Iochpe Credit, Financing and Investments), and, shortly afterwards, DICREFI – Distribuidora de Títulos e Valores Mobiliários (Securities Broker), both headquartered in Porto Alegre. Entering this new line of business kickstarted a process of administrative professionalization for the Group, with the adoption of corporate values it holds to this day, such as focus on results, agile management, financial discipline, and strategic growth, etc. In the years that followed, the Group consistently expanded its operations in the financial segment, founding new, prestigious institutions, such as the Iochpe Investment Bank, in 1973.
One of the credit modalities ICREFI introduced was “fast and direct personal credit”, a response to rising demand from an emerging consumer class avid for domestic appliances and durable goods, such as automobiles, fueled by Brazil’s vibrant growth during the “economic miracle” of the 1960s. One of the most alluring products for this burgeoning consumer class was the television, which was steadily replacing radio as the preferred communication medium. And with the dream team representing Brazil at the 1970 World Cup, broadcast live and in color from Mexico, the demand for TVs went stratospheric as kick-off approached.
It is important to remember that direct lines of credit were still a novelty in Brazil back then, with almost no products for the personal borrower available on the financial market. In order to launch its “direct credit” line, the Iochpe Group administered special training to its collaborators and sealed partnerships with large household appliance stores. ICREFI agents were allocated to the shop floor to inform customers and approve credit onsite. The process was swift and dispensed with the red tape.
When Brazil won its third World Cup title that year, TV buyers nationwide certainly had no regrets!
Below is the ad that went out on Guaíba Radio, Porto Alegre, on June 30, 1968: “Now you can buy whatever you like, when you like and how you like using Iochpe Direct Consumer Credit. With Iochpe, you can make purchases upfront, at the best prices. Visit IOCHPE for details on Direct Consumer Credit. Iochpe – Andradas, 1234 – 22nd floor – telephone: 4-3752.