BANCOINTERNET.COM TO BECOME FIRST VIRTUAL BANK FOR U.S. HISPANIC AND U.S. BRAZILIAN COMMMUNITIES

For more information, contact: Rosa Toro, Fleishman-Hillard 305-520-9018
Sheryl Altamirano, bancointernet.com 305-892-1984
For Immediate Release

MIAMI, February 7, 2000 – BI Financial Inc., a Florida-based financial Internet services company, today signed a letter of intent to join forces with Orlando-based Metro Savings Bank.  The transaction, which is subject to regulatory approval, will enable bancointernet.com to become the nation’s first virtual bank servicing the U.S. Hispanic and Portuguese-speaking communities.  Bancointernet.com will offer culturally-relevant products and integrated banking services in English, Spanish and Portuguese.

“With a population of almost 34 million, Hispanics are the fastest growing minority in the country.  Yet, 70 percent are foreign-born with different demands and expectations regarding financial institutions and services,” said David Greenberg, Chief Operating Officer of bancointernet.com. 

Currently, 68 percent of the Hispanic population is younger than 34 years old—making the majority of this population segment tech-savvy and in need of banking services.  According to Forrester Research, Internet penetration among Hispanics is growing at a faster rate than any other ethnic group having risen 650 percent over the past four years.  Moreover, Hispanics conduct more financial transactions on line than Caucasian-Americans.

"Purchasing power of U.S. Hispanics, which we estimate at nearly US$350 billion, is growing at the pace of about US$1 billion every two weeks.  However, despite these impressive statistics, the banking needs of US Hispanics have been largely underserved by traditional US financial institutions," commented Robert Lacoursiere, senior Latin American Bank analyst at Bear Stearns in New York.

In addition to offering traditional consumer banking services such as checking and savings, lending, mortgages and credit card access from the convenience of the home, bancointernet.com will offer innovative products geared specifically to this population segment.  Among them, mortgages for non-U.S. citizens and “family” joint savings accounts –recognizing the prevalence of the extended family concept among Hispanics.

“By creating specialized services, new products and a completely innovative banking environment in three languages—bancointernet.com is providing Hispanics and Portuguese-speaking residents a unique alternative,” added Santiago “Sandy” Piqué, bancointernet.com’s Chief Financial Officer.

“New entrants [to the financial sector] may find a particular niche in the recently arrived Hispanic population whose ties to their mainland continue to be very strong.  Language may be an issue for new comers as well as cultural roots, both of which could present good opportunities,” commented Rafael Bello, Senior Latin America Bank Analyst from Morgan Stanley in New York. 

Bancointernet.com’s proprietary technology will also provide small-business owners with bill payment processing, merchant accounts, small business loans and equipment financing. 

According to a Booz, Allen Hamilton study, a teller transaction costs $1.07, whereas the same transaction conducted on an ATM costs 27 cents, while on line it only costs a penny. “Since virtual banks have minimal infrastructure costs, they can offer consumers greater returns than traditional banks,” said Dr. Kenneth Thomas, lecturer of finance at the Wharton School of Business.  “They also provide 24/7 customer service and unparalleled levels of convenience.  This is why the virtual banking concept is quickly gaining acceptance and rapidly becoming the delivery system of the future.”  According to Dataquest Inc., online banking in the U.S. is expected to more than triple in the next five years, growing to 24.2 million by the end of 2004.

BI Financial is a Florida-based financial Internet services company aimed at the U.S. Hispanic and Latin American audiences.  Bancointernet.com, the nation’s first virtual bank for the Hispanic and Portuguese-speaking communities, plans to open its doors later this year.