Latino bank open for business

July 24, 2008
By Hiram Soto

The only Latino bank in San Diego County officially opened its doors yesterday, and will offer a range of services in a bilingual and bicultural setting.

Financed largely by Latinos, Vibra Bank aims to finance new businesses and offer Mexican-style service, with close relationships between bankers and their clients. In fact “vibra,” which means “vibe” in Spanish, seeks to convey that the bank is attuned to its customers.

“We hope to invest heavily in the community, including nonprofit organizations and public service agencies here in Chula Vista,” said David Bejarano, a former San Diego police chief and one of the bank's founders.

“We're open to all consumers,” he said. “But it's aimed at the Latino community.”

The bank, which is based in Chula Vista, hopes to capitalize on the large number of Mexican entrepreneurs and professionals who are launching businesses on this side of the border, from doctors and lawyers to owners of restaurants and construction companies.

“It's easy for us to offer banking services to companies and individuals from Mexico, not only because we know a lot of them, but also because we can verify if what they're saying is true,” said Dan Schon, the bank's vice president. “It's one of our advantages.”

These are difficult days for the banking industry, which has been hurt by the subprime loan debacle and a tightening credit market. This month, the federal government took over IndyMac bank in Pasadena.

Scott Parker, Vibra Bank's president, sees opportunity during these times, however.

“It seems contradictory, but in reality this is a good time to open a bank,” he said. “Many other banks are having problems because of the loans they made, but we're starting from scratch.”

Parker said the bank, which has been open for two weeks but had a formal opening yesterday, will focus on the more than 6,000 Latino-owned businesses in San Diego County. Although its emphasis will be on commercial loans, it will also offer mortgages and personal and auto loans.

To make its customers feel at home, the bank offers services in English and Spanish and all forms are also available in both languages. Likewise, it offers its customers free calls to Mexico for business-related matters.

Accounts can be opened using a Mexican passport or matrícula consular, a form of identification issued by the Mexican consulate.

Although other banks offer services in Spanish, Schon said Vibra Bank sets itself apart through its knowledge of the Mexican banking system and the way it has structured its services.

“Here, banks have people specifically designated to new accounts or loans, and that's all they do,” he said. “But in Mexico, bankers take care of all your deposits, loans, growth plans and everything you need. And that's how we're going to operate.”

The bank is on Broadway, in a 1940s-era building that previously housed Bank of America and Union Bank of California branches. It had been a fabric store in recent years.

To launch, the bank raised $14.8 million from 200 investors, including Mexican bankers and border businesspeople. Among them are Mexican entrepreneur María Dávila of the Regional Telecommunications Corporation of Mexico and Jeffrey Davidow, president of the Institute of the Americas at UCSD and a former U.S. ambassador to Mexico and Venezuela.

Source: The San Diego Union-Tribune