IBT Enterprises

Events & Press

IBT and El Banco Partner to Provide Turnkey Program for Credit Unions to Service Latino Communities

CUNA OpSS Conference, SAN FRANCISCO - September 27, 2006 - IBT Enterprises, LLC, a leader in retail design, construction and consulting services for the financial services industry, and EL Banco Financial Corporation (El Banco), a financial services company based in Roswell, Georgia focused on the underserved Latino market, today announced a partnership agreement designed to help credit unions attract and service the unserved and underserved Latino market.

"The combination of IBT's design and construction expertise along with El Banco's proven and secure platform for non-traditional banking products will enable credit unions to provide Latinos with a user-friendly venue to conduct their banking," said George Hodges, Executive Vice President and Chief Marketing Officer of El Banco. "All too often this segment of the population is underserved and targeted by predatory lenders. This new offering will provide a fast growing segment of our population with the knowledge and opportunity to better manage their finances and migrate to full banking relationships."

The Latino community is the fastest growing population in the United States. In fact, the Latino population has increased 22 percent since the 2000 census and the Census Bureau estimates that Latinos account for more than 14 percent of the total population.

Beyond simple population considerations, the Latino community also wields great purchasing power. Current estimates place Latino spending at more than $700 billion annually; that number is expected to increase to $992 billion by 2009. The volume of spending presents a great opportunity for credit unions to increase their market share.

While this demographic segment is rapidly increasing in numbers and influence, it remains largely underserved in terms of financial options and highly susceptible to alternative financial services outlets that charge inflated fees and interest rates. The IBT/El Banco Latino Retail Branching Solution enables credit unions to reach out to the Latino market by offering the products and services they need in a culturally sensitive and welcoming branch environment.

The Retail Branching Solution for the Latino Community consists of:

Comprehensive Market Analysis and Segmentation Services to provide a "Street level" canvas of Latino businesses and one-on-one interviews with members of the Latino community in each market of interest
Turnkey Design and Build of Latino Branded Branches that include design, construction and project management of a new branch or remodel of an existing branch that is branded for the Latino consumer/member experience
Non-banking Products and Technology Processing Platform, a proprietary ASP-based operating platform that enables banking and non-banking transactions to be run from one cash drawer
Cultural and Product Implementation Services including marketing, human resources, operations and retail training to ensure success

The El Banco platform, Conexión El Bancosm, provides a point of sale solution that supports a mix of traditional and non-traditional bank and financial services, including:

Check cashing services
Domestic and international money transfer services
Money orders
Bill payment services
Pre-paid phone cards and cell phone loads

Conexióon uses a unique "scoring system" and "centralized underwriting center" to enable financial institutions to offer these non-traditional banking and cash services to 12 different types of checks in a secure and profitable manner.

"This program fosters a natural partnership between credit unions and the Latino community," said Tom Tucker, executive vice president of IBT. "It allows credit unions to more easily expand into new growth markets and obtain a more visible presence in underserved communities, while helping Latinos become full credit union members and take advantage of mainstream financial services."

"Since their inception, the mission of all credit unions has been to provide financial services and support to the community - people helping people," said Wes Millar, CUNA senior vice president of strategic alliances. "Credit unions have historically led the way in serving members of modest means and addressing the Latino community is a natural progression of this commitment. The partnership and combined offering of IBT and El Banco accelerates a credit union's ability to connect with and serve this important and influential market."

The Latino program is available to any credit union seeking to educate and provide financial services to the Latino community. For more information or to learn about upcoming Webinars, call Randy Tipton, Vice President, IBT at 480-361-1389 or ibtinfo@ibtenterprises.com.

About El Banco Financial Corporation
El Banco Financial Corporation is a financial services company focused on the underbanked Latino market by offering a full array of non-traditional and customized traditional financial products in retail locations branded El Banco de Nuestra Comunidad® and through mainstream financial institutions who purchase the company's proprietary systems and intellectual property. El Banco currently has 138 employees - 115 of whom are immigrant Latinos - and a board of directors of 7 community and business leaders.