In Brief (two items)

Largest ATM Network in Mexico Eyeing Expansion into Costa Rica

MEXICO CITY - Prosa SA de CV, Mexico's largest ATM switch, is making its first international move with a planned expansion into Costa Rica.The company is in talks with Banco Popular, Banco de Costa Rica, and Bancrecer, and seeks to process 30 million to 40 million transactions annually.

"We have studied the Costa Rican market for over a year now," said Jose Molina, director general of Prosa. "They don´t have the scale economies Mexico has, and the need for the service is incipient."

Prosa ranks among the world's 12 largest ATM switches. Its shareholders include the largest Mexican banks, such as Serfin, Bancrecer, Banorte, BBV, Bital, Citibank, and Santander. Last year it handled 700 million electronic transactions. The addition of Costa Rica would boost volume by an estimated 6%.

Costa Rican banks currently use different switches and direct connections among private banks. Prosa would be placed at the core to interconnect all institutions and share transactions, Mr. Molina said.

Mr. Molina said he sees Costa Rica as a door to further expansion abroad. He praised the long economic and political stability of the nation and said it is the most banked society in Central America.

Over the last two years Prosa has invested $15 million in new technology to stay competitive with global switching services. This has allowed it to cut prices by 50%, lowering per-transaction costs to 1.9 cents, Prosa said.

Mr. Molina acknowledged "it won't be easy" to export banking services when the bulk of Mexican foreign trade still derives from manufacturing. Both Mexico and Costa Rica are negotiating a free-trade agreement to facilitate commerce between them.

- Jorge Reyes Z. of Banca Latina


Morgan Stanley Dean Witter Unit To Use Keystroke's Loan Software

SEATTLE - Morgan Stanley Dean Witter Credit Corp. has signed a contract to use new on-line loan software from Keystroke.com.The software lets lenders brand and offer dozens of customized loan products through a single Web site, including first mortgages, refinancings, auto loans, and credit cards.

Consumers answer a series of credit and income questions on their lender's Web site. The technology then selects rates and lending programs best suited to the consumer's needs.

Keystroke encrypts data to ensure customer confidentiality and makes it possible for clients to talk with lending institutions in real time.

"We want to transform the traditional loan process for consumers by giving lenders the tools to brand a Web site and offer the best possible loan services on the Internet," said Keystroke's chief executive officer Joe Hausauer.

Founded in 1995, Keystroke has an on-line closure rate of more than 90%. Washington Mutual is an investor in Keystroke.

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