JKHY
signs deal to provide software for internet bank...historically, a strong company, now out of favor....ride the back bone, rather than the bronco...like CSCO, LU rather than the internets..
of course, your DD rules
Friday April 16, 6:55 am Eastern Time
Company Press Release
SOURCE: Equitex, Inc.
Equitex Announces Net1Bank, NA Plans for Online
Banking
Agreement Signed with a Leading Provider in the Banking Industry of
Internet Software Solutions and Integrated Computer Systems
ENGLEWOOD, Colo., April 16 /PRNewswire/ -- Equitex, Inc. (Nasdaq: EQTX - news) announced today that Net1Bank,
NA (''Net1Bank'' or the ''Bank'') has signed an agreement with Jack Henry & Associates, Inc. (''JH&A'') (Nasdaq: JKHY -
news) to provide Net1Bank with software for its Internet banking applications. JH&A is a leading provider of financial
software solutions and integrated computer systems for the banking industry.
Equitex recently announced its intent to merge with Boca Raton, Florida based First TeleBanc Corp., the bank holding
company for Net1Bank, a nationally chartered bank. A definitive agreement is expected to be signed within 30 days.
Net1Bank's business plan calls for it to become the premier Internet bank, offering banking related services through low cost
delivery channels including the Internet and the telephone, with access 24-hours- per-day, seven-days-a-week. As a result of
the merger, Equitex will change its name to Net1Bank Corp. and will apply for the ticker symbol NBNK on the Nasdaq Stock
Market. The merger is subject to the customary regulatory and stockholder approvals.
''Due to overwhelming consumer demand nationwide, Net1Bank's online banking applications and web site development have
been accelerated and are expected to be completed early this summer,'' said William Schneider, President and Chief Executive
Officer of Net1Bank. ''The web site will combine an animated, user friendly layout and navigation design with JH&A's proven
bank technology and systems which provide functionality, redundancy and security. Customers of Net1Bank will be able to
initiate banking transactions anytime, anywhere, real time, including paying bills, transferring funds and opening new deposit and
loan accounts.''
''Net1Bank's business strategy is significantly different from many online banks in a number of ways,'' said Keith Duffy,
Chairman of Net1Bank, ''one, a broader target customer base, including sub-prime consumers; two, offering a 'one stop
financial shopping' approach using correspondent relationships for certain products with high credit risk for sub-prime
consumers; three, high fee-based income, low risk programs including one of the most successful SBA (Small Business
Administration) loan programs in the Southeastern United States with a current pipeline of over $30 million, secured and
unsecured credit cards, starting August 1999, and electronic transaction and merchant processing, scheduled for fourth quarter
1999; four, better capital utilization by continuing to identify niche opportunities to deliver a higher return on investment; five,
superior customer service with the philosophy of creating lifetime loyal customers; and six, no high overhead branch network,
which some online banks still maintain.''
Henry Fong, President of Equitex, stated, ''Net1Bank will complement our wholly owned subsidiary First TeleServices Corp.
which offers financial products and services to the sub-prime market, with almost 80,000 collection customers throughout the
United States. First TeleServices' credit repair programs assist these consumers to start over from a credit standpoint, through
debt transfer servicing, debt arbitration, balance transfer and secured credit cards. I believe the combination of Net1Bank and
First TeleServices creates a powerful synergy, generating customers from the bottom up and from the top down. We anticipate
having a base of one million customers within three years.''
First TeleServices Corp. of Atlanta, Georgia is a fee-based financial services organization. FTC operates as a consumer finance
company offering a broad array of financial products and services to the sub-prime consumer market. These products are
made available through correspondent relationships with companies specializing in those business lines, including debt transfer
servicing, debt arbitration, secured credit cards, B and C mortgage loans and sub-prime auto loans. FTC has developed
strategic alliances with a number of nationwide organizations to outsource many of the products and services it offers.
First TeleBanc Corp. is a bank holding company regulated by the Federal Reserve Bank of Atlanta, which owns Net1Bank,
National Association, formerly known as Boca Raton First National Bank, a 13-year-old nationally chartered bank based in
Boca Raton, Florida.
Equitex, Inc. is a holding company that currently operates through its wholly owned subsidiary, First TeleServices Corp. of
Atlanta, Georgia. First TeleServices Corp. is a financial services marketing company offering various financial products targeted
to the subprime consumer. Equitex currently owns 9.9% of, and has executed a letter of intent to merge with, First TeleBanc
Corp., a single bank holding company which owns Net1Bank, NA based in Boca Raton, Florida.
Except for the historical information presented herein, the matters set forth in this press release are forward-looking statements
within the meaning of the ''safe-harbor'' provision of the Private Securities Litigation Act of 1995. These forward-looking
statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed in the
Company's periodic reports filed with the Securities and Exchange Commission. These forward-looking statements speak only
as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.
SOURCE: Equitex, Inc.
More Quotes
and News:
Equitex Inc (Nasdaq:EQTX - news)
Jack Henry & Associates Inc (Nasdaq:JKHY - news)
Related News Categories: banking, computers, internet, networking
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