March 19, 2002
MILLENIUM HOLDING GROUP INC /AZ/ (MNHG.OB)
ITEM 6. MANAGEMENT'S PLAN OF OPERATION
Millenium Holding Group, Inc. (Pink Sheets: MNHG) is a publicly traded and fully reporting financial services Company in early stage development. The passage of the Financial Modernization Act (Gramm-Leach-Bliley Act) will radically overhaul the nation's banking, insurance and securities markets. The Act allows one Company to possess all three disciplines The officers and directors of the Company have years of experience in the insurance industry. The Company is also actively pursuing the creation of an Internet National Bank and exploring the possibility of forming or acquiring a Broker Dealer in order to service the securities market.
In order to receive a charter to operate an Internet National Bank, the Company will follow the requirements as set by the Office of the Comptroller of the Currency (OCC). The organizers understand the national banking laws, regulations and sound banking operations and practices. The Board of Directors of the Company has years of experience in the financial management field and has begun recruiting competent management with the ability and experience to successfully operate a bank of this type in a safe and sound manner.
The satisfaction of the Company's cash requirements in the near future will be met in by the principal shareholders, Richard Ham and Ham Consulting Company. The principal shareholders have no expectations of reimbursement of the funds advanced other than the possibility of restricted stock payment in lieu of cash. It has no way of determining whether there will be any type of reimbursement in the future.
The cost associated with the acquisition and leasing of the software developed by Banking Software Co. and the integration technology created by IBM as well as the hiring of the numerous employees necessary to launch the Internet Bank will indubitable precipitate either a public offering or the existing shareholders will re-invest on a private basis. The Company will raise at least five million dollars ($5,000,000), net of all fees and organizational costs.
Mr. Ham an officer and stockholder transferred an insurance agency that had a value of $20,379 in exchange for 20,379 shares of stock. The agency was transferred in to service the proprietary insurance products previously transferred into the Company. The transaction was treated as a recapitalization for 1999 and 2000.
The software required for the Internet bank is in control of the majority shareholder and will be leased to the Company by the principal shareholder. It is state of the art and can service up to a fourteen billion-dollar bank. The Systems will provide an automation Systems with multi-currency and multi-lingual abilities. The core Systems is stable and secure with an adaptable foundation that allows the Company to continue to focus its resources and attention on delivering products and services to its customers. The software, which can be adapted to the insurance business, will be the center of the Company's business, consists of the following five components:
The Customer Information Component tracks data on all customers.
The Deposit Accounting component processes all deposit products, ranging from checking, Money Market, savings, passbook and club accounts to certificate of deposit, time deposit open accounts, OIDs and IRAs.
The Loan Accounting component processes personal, credit line, business and real estate loans.
The Transaction Processing component is the manager and dispatcher of monetary transactions.
The Executive Information component houses the general ledger and is the source of financial management information.
This very unique software will allow the Company to expand into the now authorized banking field of insurance. The Company is now ready to embark on said expansion and has the software in place to do so.
There is no other plan to develop new products within the next 12-month period.
The Company is also intending to become a member of the Society for Worldwide Interbank Financial Telecommunication (S.W.I.F.T.). It is the Company's belief that membership in this organization will provide the bank international access and credibility. The core banking Systems will be interfaced with S.W.I.F.T. so that transactions will automatically be recorded throughout the appropriate components of the automated Systems. This organization provides low-cost competitive financial processing and communication services of the highest quality, integrity and reliability.
The Company does not believe that it will encounter internal year 2000 problems in that the software is year 2000 compliant.
The Company will hire knowledgeable professionals for its customer interface to offer personalized attention and service to the individual. It will also hire a Chief Technology Officer and add other individuals who will bring valuable experience to better service the Company's banking and insurance customers. |
