Westar Financial Achieves True 'Financial Portal' Status as Fourth Origination Channel Begins Production
1 June 2000
Westar Financial Achieves True 'Financial Portal' Status as Fourth Origination Channel Begins Production
OLYMPIA, Wash., June 1 Westar Financial Services,
Incorporated (OTC Bulletin Board: WEST), historically a prime credit auto
lessor, today reported it is the first ever to simultaneously originate prime
consumer automobile lease and loan contracts for itself and others through
four separate origination channels, including three separate e-commerce paths.
Westar has historically originated leases through auto dealers in
14 western states in competition with the financial subsidiaries of the
manufacturers and money center banks. Last fall the company announced it was
beginning operations over the Internet as the exclusive financial
administrator and fulfillment agent for DriveOff.com, in which role it was
recognized for completing the first electronic vehicle acquisition over the
Internet in October 1999. In April, Westar began originating automobile
transactions for AmSouth Bank through its unique Private Label program.
Westar announced today that it has begun automobile deliveries originated
through its fourth e-commerce channel, a 'B2B2C' model where consumers, when
members of selected very large affinity groups, can access discrete branded
web sites for special automobile acquisition and finance pricing and services.
"The term which now best describes our completely unique business model is
'financial portal,'" stated R. W. Christensen, Jr., President. "We take
physical transactions-auto purchases and financings-from a number of diverse
sources and electronically convert them into financial instruments, such as
loans, leases, even the documents for cash purchases. We then package the
leases and loans for the ultimate investor, whether for Westar's own account
or for the account of other financial institutions with which we have
agreements to originate. In just three weeks of operations, application and
approval volumes from the e-finance side of the house have exceeded the first
three years' experience in the 'bricks' side of our business. In other words,
we've already doubled our volumes and the growth rate is accelerating
rapidly."
"Westar differs significantly from the others in the e-finance space,"
according to Vicki Christensen, Vice President-Information Systems. "Most
importantly, we are neither an aggregator nor a lead referral source. Westar
is unique in that it operates as the decisioner for all of the applications
which we handle. That difference creates deal control, elegance and
significant value added. Second, Westar actually commits to the transaction
with the consumer, typically in less than one minute, and it is a binding
commitment. Again, value added. Most importantly, our proprietary fulfillment
services, very competitive pricing, and the firm financial commitment to the
consumer allow us to avoid the disintermediation common to others in the
space. The resulting efficiency reflects itself in both our pricing and our
margins. That's where we realize a benefit from, and a return on, the values
we've created."
"We've finished proving each of our technological innovations and the
internal processes developed over the past several years. Based on daily
throughput rates, we know that our present systems can easily handle growth in
excess of the record volumes we're already experiencing. Now, we're going to
fully execute our plan," added Mr. Christensen. "While we presently have one
significant client in each origination channel, we will work over the next
60 days to conclude the negotiations currently in process with others and
activate the next wave of institutional clients. We believe the activation
process will be far easier and faster now that our templates are established."
WEST is the only publicly traded automobile automobile-oriented financial
portal. Westar entered into automotive e-finance through a $1 billion funding
commitment to DriveOff.com, a 3rd generation e-commerce business model
allowing consumers to buy and finance new automobiles in a single electronic
transaction. Through DriveOff.com, Westar completed the first entirely
electronic Internet automobile purchase and lease transaction in October 1999.
The company operates its Dealer Direct leasing program in the western states
and is rapidly expanding its e-finance capabilities nationally through
alliances with DriveOff.com, AmSouth Bank and others.
Statement regarding "Forward Looking Statements": Statements concerning
future performance, developments or events, including expansion of operations,
growth of loan originations, ability to place securitizations, success of the
e-commerce model, trends in interest rates, various statements concerning
expectations for growth or profits and any other guidance on future periods,
constitute forward-looking statements which are subject to a number of risks
and uncertainties which might cause actual results to differ materially from
stated expectations.