Bank of Internet USA

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Bank of Internet USA
Industry Personal Financing and Banking
Founded 1999
Headquarters San Diego, California, USA
Key people
Gregory Garrabrants, President and CEO
Parent BofI Federal Bank
Website http://www.bankofinternet.com/

Bank of Internet USA is an American federally chartered, full-service internet bank and the flagship consumer brand of BofI Federal Bank.[1] Bank of Internet USA is known as the oldest Internet-only bank in the United States[2] and is Federal Deposit Insurance Corporation (FDIC) insured for savings up to $250,000.[3]

Bank of Internet USA and is headquartered in San Diego, California, and operates exclusively online, with no brick-and-mortar branches.[3] By remaining solely an online institution, Bank of Internet is able to operate at half the cost of their competition. These savings are then passed along to their customers through industry-leading interest rates on deposits and some of the lowest loan rates.[4]

Bank of Internet USA provides consumer banking solutions including checking accounts, savings, money markets, certificates of deposits, IRAs, mortgage lending, refinancing and home equity loans.[5]

Services and Products[edit]

Personal Banking[edit]

Bank of Internet USA offers a wide range of personal banking services and products. One of its most popular options, Rewards Checking, has received acclaim from GoBankingRates.com,[6] Money Magazine,[7] WalletHub.com [5] and NerdWallet[8] for its high interest rates and no minimum balance requirements.

In 2016, NerdWallet awarded Bank of Internet USA’s personal banking with 3 accolades including Best Checking Account, Best Rewards Checking Account and Best Money Market Account. According to NerdWallet spokesman Devan Goldstein, “We’re pleased to recognize Bank of Internet USA in several categories, as they’ve been at the forefront of online banking for quite a while and haven’t gotten enough credit for it. They’ve stayed true to the branchless banking model: low-overhead operations paired with strong rates and innovative product features across the deposit landscape."[9]

The bank’s personal banking products also feature access to Popmoney, a person-to-person money transfer service; FinanceWorks™, a money management and budgeting tool; Mobile Deposit, a mobile check deposit app; and MyDeposit, a remote deposit solution that allows customers to submit scanned checks from their computers .[10]

Bank of Internet also offers savings options like High Yield Savings, money markets, certificates of deposit (CDs) and individual retirement accounts (IRAs). From 2013 to the end of 2015, Bank of Internet USA saw a 327% growth in the number of savings deposits.[11] Part of that growth may be attributed to Bank of Internet acquiring a portion of H&R Block’s banking business in 2014, including 300,000 individual retirement accounts (IRAs).[12]

Bank of Internet USA’s savings are also a fan favorite because of its ease of access to their funds. In 2016, NerdWallet voted Bank of Internet USA Money Market as Easiest to Access Your Money due to its simplicity to write checks, debit card access and online bill-paying services.[13]

Mortgage[edit]

Bank of Internet USA uses an industry-leading model for online home loans that is fast, convenient, and means significant savings passed on to their customers. The bank offers industry- leading low rates on mortgages with award winning customer service on a full suite of customized mortgage options that include purchase loans,[14] refinance loans,[15] conventional loans,[16] FHA loans,[17] VA loans,[18] jumbo loans,[19] home equity loans,[20] and portfolio loans.[21] Bank of Internet is a Zillow® 5-Star Lender.[22]

Bank of Internet USA’s custom built portfolio loans offer loan amounts up to $5MM (and higher on a case-by-case basis) for borrowers with complex financial situations. This innovative program offers, interest only options, 90% financing through cross collateralization, vesting title in entities such as an LLC, trusts, partnerships and sub S corporations and qualification using asset utilization. Financing is also available to Foreign Nationals.[23]

The bank prides itself on their “makes-sense” underwriting approach with localized decision making and simplified origination process through a streamlined online application that allows the bank to close loans quickly, without the headaches of a long drawn-out process. They prioritize purchase closings and stand by this with their fast close-of-escrow guarantee (limitations apply*).[24]

History[edit]

Bank of Internet USA was founded in 1999 by Jerry Englert, the founder of Bank of Del Mar,[25] and Gary Lewis Evans, who was president of La Jolla Bank at the time.[26] The bank’s holding company, BofI Holding, Inc., was incorporated in the State of Delaware in July 1999 for the stated purpose of organizing and opening an Internet-based bank.[27]

The bank was launched with $14 million in startup capital and was profitable within 14 months.[25] The bank’s thrift charter allowed it, and continues to allow it, to operate within all 50 states.[27] The number of employees running and managing the bank has grown from 35 in 2007 to 534 as of December 31, 2015.[28]

In October 2011, Bank of Internet USA changed its name to BofI Federal Bank.[29] However, BofI Federal Bank continued to use the Bank of Internet USA name for its online consumer direct banking brand. The goal of Bank of Internet USA remains to provide banking services more cost-effectively by eliminating the overhead costs of branches.[30] According to Andrew Micheletti, CFO and VP of BofI Holding, Inc., “We are taking advantage of the Internet for both efficiency in the back office and efficiency in the distribution and delivery of banking products.”[30]

Recognition[edit]

2014[edit]

  • Bank of Internet USA’s Rewards Checking account was named one of “The 5 Best Online Checking Accounts of 2014” by GoBankingRates.com.[31]
  • Bank of Internet USA Rewards Checking Account named 2014 Overall Best Online Checking Account by WalletHub.com [32]
  • Bank of Internet was named 1 of the Top 5 Online Banks of 2014 by MyBankTracker.com[32]

2015[edit]

  • Money named BofI Rewards Checking the best checking account (in a tie with Aspiration Summit) in its list of Best Banks in America 2015-16[7]
  • NerdWallet named Bank of Internet USA Rewards Checking as a top checking account with the “Best ATM Options”[33]

2016[edit]

  • Bank of Internet USA named one of AdvisoryHQ Best Banks to Bank With in America “Best Online Banks”[34]
  • Bank of Internet USA named a 2016 “Best Online Bank” by GoBankingRates.com[35]
  • Bank of Internet USA’s Rewards Checking account was named one of “10 Best Checking Accounts of 2016” by GoBankingRates.com[36]

References[edit]

  1. ^ "BofI Holding Inc. Changes Name of Bank Subsidiary to BofI Federal Bank". Marketwire. Retrieved March 2, 2016. 
  2. ^ "The Best Bank for ATM Users? You might be surprised.". ATM Marketplace. March 3, 2016. Retrieved March 3, 2016. 
  3. ^ a b "Profile: Bank of Internet USA". Bankaholic. 22 January 2011. Retrieved 17 August 2012. 
  4. ^ Frankel, Matthew. "Bank of America and its Peers Could Learn From This Innovative Young Bank -- The Motley Fool". The Motley Fool. Retrieved 2016-06-13. 
  5. ^ a b "Bank of Internet USA | Personal Banking | Mortgages". Bank of Internet USA. Retrieved 2016-06-10. 
  6. ^ "Bank of Internet USA Rewards Checking Named One of "The 5 Best Online Checking Accounts of 2014". MarketWired. January 1, 2014. 
  7. ^ a b "The Best Bank for Debit Card Users". MONEY.com. Retrieved 2016-06-10. 
  8. ^ "Best Online Checking Accounts of 2016 - NerdWallet". NerdWallet. Retrieved 2016-06-10. 
  9. ^ "Bank of Internet USA Makes NerdWallet's 2016 Best Banks and Credit Unions List". Business Wire. Retrieved April 19, 2016. 
  10. ^ "Rewards Checking". Bank of Internet USA. Retrieved 2016.  Check date values in: |access-date= (help)
  11. ^ "BofI Holding, Inc. Investor Presentation" (PDF). SNL. Retrieved April 2016.  Check date values in: |access-date= (help)
  12. ^ Wathen, Jordan (April 11, 2014). "5 Things BofI Holding, Inc. Shareholders Should Know Now". Motley Fool. 
  13. ^ Burnette, Margarette (25 February 2016). "NerdWallet's Best Money Market Accounts of 2016". NerdWallet.com. 
  14. ^ "Buy A Home". Bank of Internet USA. Retrieved May 9, 2016. 
  15. ^ "Refinance". Bank of Internet USA. Retrieved 9 May 2016. 
  16. ^ "Bank of Internet USA - Conforming Loans". Bank of Internet USA. Retrieved 2016-03-19. 
  17. ^ "Bank of Internet USA - Government Loans". Bank of Internet USA. Retrieved 2016-05-10. 
  18. ^ "Bank of Internet USA - Government Loans". Bank of Internet USA. Retrieved 2016-06-10. 
  19. ^ "Bank of Internet USA - Jumbo Loans". Bank of Internet USA. Retrieved 2016-06-10. 
  20. ^ "Bank of Internet USA - Home Equity Options". Bank of Internet USA. Retrieved 2016-06-10. 
  21. ^ "Bank of Internet USA - Portfolio Loans". Bank of Internet USA. Retrieved 2016-06-10. 
  22. ^ "Bank of Internet USA - Mortgages". Bank of Internet USA. Retrieved 2016-06-10. 
  23. ^ "Bank of Internet USA - Portfolio Loans". Bank of Internet USA. Retrieved 2016.  Check date values in: |access-date= (help)
  24. ^ "Bank of Internet USA - Close of Escrow Guarantee". Bank of Internet USA. Retrieved 2016-03-15. 
  25. ^ a b "Jerry Englert, 73, cofounded Internet-only bank". The San Diego Union-Tribune. Retrieved 2016-06-13. 
  26. ^ "Profile: Bank of Internet USA". www.bankaholic.com. Retrieved 2016-06-13. 
  27. ^ a b "BofI Holdings- Form S1". www.sec.gov. 
  28. ^ "Banks Ranked by Number of Employees". www.usbanklocations.com. Retrieved 2016-06-13. 
  29. ^ "BofI Holding Inc. Changes Name of Bank Subsidiary to BofI Federal Bank". www.sec.gov. Retrieved 2 March 2016. 
  30. ^ a b Transcripts, SA (2007-05-24). "Bank of Internet USA: Wall Street Analyst Forum Presentation Transcript". Seeking Alpha. Retrieved 2016-06-13. 
  31. ^ "Bank of Internet USA Rewards Checking Named One of "The 5 Best Online Checking Accounts of 2014". Market Wired. 27 Jan 2014. 
  32. ^ a b "How do you compare to other online banks?". BofI Federal Bank. 
  33. ^ "Best Online Checking Accounts of 2016 - NerdWallet". NerdWallet. Retrieved 2016-06-10. 
  34. ^ "Best Banks to Bank With – No Fees, High-Yield Savings, Largest Banks, and Credit Unions". AdvisoryHQ. 2015-10-25. 
  35. ^ "Announcing the Best Banks of 2016 | GOBankingRates". GOBankingRates. 2016-01-05. 
  36. ^ "10 Best Checking Accounts of 2016 | GOBankingRates". GOBankingRates. 2016-01-11. Retrieved 2016-06-10. 

External links[edit]