Bank of Internet USA
|Headquarters||San Diego, California, USA|
|Key people||Gary Lewis Evans (founder)|
|Parent||BofI Federal Bank|
Bank of Internet USA is an American federally chartered, full-service online bank that operates as a direct Internet banking service.
The bank is one of the first banks in the world to offer banking services exclusively on the Internet. Bank of Internet USA operates as subsidiary of BofI Holding, a publicly traded company.
Bank of Internet USA is a financial institution insured by the Federal Deposit Insurance Corporation. It was founded in 1999 by Gary Lewis Evans, who was then president of La Jolla Bank. Based in San Diego, California, USA, Bank of Internet, USA was one of the first banks in the world to offer services exclusively through the Internet.
As of 2007, Bank of Internet USA operated in all fifty states, and was completely run and managed by 35 employees operating out of one location in California. By 2011, the bank had around 100 employees. In August 2011, Bank of Internet USA launched a person-to-person payment service called Popmoney. The service allows consumers to make financial transactions without sending cash or checks, and is used both for personal transactions and paying bills.
In October 2011, Bank of Internet USA changed its name to Bank of Internet Federal Bank. No changes in ownership, mergers, or acquisitions were associated with this name change. BofI Federal Bank chose to adopt this new name and logo in order to provide an umbrella entity under which all division brands were unified.
Bank of Internet USA is a subsidiary group of BofI Federal Bank, operating as the Bank’s “flagship consumer direct Internet banking brand.” This division offers banking and mortgage products and claims that the lack of overhead fees typically used to run physical bank branches allows it to offer services at lower rates. Because it operates solely through the Internet, customers have 24-hour access to banking from any device with Internet access.
Bank of Internet USA aims to provide banking services more cost-effectively by reducing the overhead costs of branches. Andrew Micheletti, CFO and VP of Bank of Internet Holding Inc., Bank of Internet USA’s parent company, states
The Internet creates a more efficient model. We are taking advantage of the Internet for both efficiency in the back office and efficiency in the distribution and delivery of banking products.
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