EFGO(.0005)Esprit Financial Group Inc. (Esprit) (EFGO.PK) Announces Strategic Marketing Alliances for the "Cash Now Card"
LAS VEGAS, May 23, 2007 /PRNewswire-FirstCall via COMTEX/ -- Esprit Financial Group Inc. (ESPRIT) (EFGO.PK) www.espritfinancialgroup.com is pleased to announce that it has reached an agreement in principle with several major credit card issuers through their agents for access to their data base of credit card applicants who have been refused or denied (DRC) regular credit cards. Esprit has been given permission to access and mine the data to solicit new customers for its Cash Now prepaid credit card products of its Advanced Electronic Funds Management (AEFM) division.
These consumers have been denied credit and labeled DRC for various reasons, ranging from poor credit history or negative credit remarks to name a few. The size of the DRC database is literally millions of credit card applicants.
Mr. Winters, Esprit's CEO has said "Simply put, the entire database would be just too overwhelming for Esprit's needs at this time. We are most definitely interested in taking on as much as we can handle, in an effort to speed up our goal of 50,000 subscribers. Traditionally the conversion rate of the DRC applications to prepaid credit cards is quite high, as the applicants credit denial notice from the issuing bank does not resolve the fact that they still need Visa or a Master Card type services."
Esprit prepaid credit card solutions offer credit card applicants advanced features not usually available on traditional prepaid credit cards. A good example is our ability to offer the DRC client a micro loan through our Payday Loan division. This feature should enable Esprit to convert a higher ratio of applicant DRC prospects than industry guidelines.
Prepaid credit cards generate excellent margins, and minimal credit risk, due to the fact that the credit limits of each card are based on funds deposited by the cardholder.
The data mining analysis of the database of DRC clients will be optimized to search for DRC applicants that would be candidates to cross-market other financial service solutions from the AEFM portfolio. Many DRC clients may be interested in Esprit's EM2 products that would allow them to transfer funds to family and relatives abroad. Esprit's financial solutions for this market are at the very leading edge of the industry, allowing quick transit times for the funds and lower transfer fees than options such as Western union.
Another important aspect of the Cash Now card prepaid credit card is the fact that these products continue to generate a recurring monthly stream of revenue over extended periods of time. This creates a compounding monthly revenue stream as Esprit builds its base of cardholders over the next few years, i.e., if the Company adds 500 new customers per month over a period of 12 months, by year-end there will be 6,000 prepaid credit cards generating monthly income.
The fee for use of the DRC data mine is contingent upon the size of the order, recency of the applications and other factors and will be paid in cash from Esprit's operational funds.
In closing, Esprit CEO Garr Winters added: "Our AEFM division continues to ramp up operations for our various International financial services on a fast track basis. We are ahead of schedule on a number of products and financial services, and will be endeavoring to launch sales and marketing initiatives for some of these products ahead of our initial estimates of the third quarter of this year. The obvious goal is to bring these revenue streams online as quickly as possible."
Esprit management projects that the Cash Now Card division should be in a position to attract 50,000 to 100,000 customers within the next 18 to 24 months. This product should, by our estimates, be capable of generating about $1.5 to $2.0 million in revenue on an annualized basis at the end of this time frame.
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About Esprit Financial Group Inc.
Esprit Financial Group Inc, is a public company engaged in a diversified number of online financial services. It is traded on the Pink Sheets and Frankfurt exchanges.
PayDay Loans: The Company is a pioneer in the payday loan industry, and continues to develop the most comprehensive menu of services in the cash advance industry and will retain the Cash Now brand for many of these services. Under the Cash Now banner www.cashnow.org . The Company also operates www.cashnow.net, which generates leads of consumers looking for payday loans on behalf of our licensees.
Forex: Additionally, the Company's Forex Trading division offers an innovative low-cost online Forex trading service at www.cashnow.com. The Company acts as an Introducing Broker for Advanced Markets, Inc., and is targeted to serious day traders.
Advanced Electronic Funds Management: The Company's Advanced Electronic Funds Management (AEFM) division offers Cash Now Check 21 - an advanced checking clearing service that can significantly reduced holdback periods by banking institutions, particularly valuable for international markets. Its EM2 (Electronic Money Management System) product is a comprehensive e-wallet capable of managing multiple bank accounts, remitting funds worldwide and provide banking capabilities to consumers without requiring that they have a bank account.
Structured Debt Resolution: This division will offer services that allow banks, financial institutions and other creditors to invite defaulted clients to negotiate a settlement online, in a neutral and non-confrontational manner, bypassing traditional collection calls and mail delivered notices of default.
Safe Harbor Statement
Information in this press release may contain 'forward-looking statements.' Statements describing objectives or goals or the Company's future plans are also forward-looking statements and are subject to risks and uncertainties, including the financial performance of the Company and market valuations of its stock, which could cause actual results to differ materially from those anticipated. Forward-looking statements in this news release are made pursuant to the 'Safe Harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to the ability to close transactions being contemplated, risks related to sales, continued acceptance of Esprit Financial Group's products, increased levels of competition, technological changes, dependence on intellectual property rights and other risks detailed from time to time in Esprit Financial Group's periodic reports filed with the regulatory authorities.
SOURCE Esprit Financial Group