Bank of Internet, USA Reports Profits In Just Over 14 Months of Operation

San Diego, California. In one of the most challenging business environments ever, Bank of Internet, USA announced it had reached profitability in just 14 months of operation-three times faster than is typical in the banking industry.

"When a bank is pure Internet, as we are," said Board Chairman Jerry Englert, "all the economies of scale kick in and the bank's cost structure changes dramatically-no bricks and mortar, no titles, no monuments-just because a bank offers Internet banking services on-line won't materially alter their cost structure It just adds more expense to an already expensive operation. Banks today are focusing on the technology as an operational necessity and not as a strategic process. Because we're pure Internet we've taken the fat out of financial services, and the strength and diversity of our business has enabled us to produce solid bottom-line results in just 14 months."

The bank opens between 40-50 retail accounts every day and has customers in every state in America-except North and South Dakota "An anomaly," Said Englert "for which we have no explanation!" Englert said that the bank plans to continue to execute its customer-focused strategy to attract new customers and deepen existing customer relationships.

Englert, who was the lead founder and inspiration behind Bank of Del Mar, CA, said he was pleased but not surprised at the how quickly the bank reached profitability.

"The Internet is a unique distribution method that is ideally suited to the digital world of banking and it will continue to evolve in response to customer needs, emerging technology and market developments. Our commitment is to invest in resources so that our customers continue to receive the greatest benefits." said Englert, "We also have some of the most dynamic people in the industry working with us. Gary Lewis Evans, president and chief executive officer, brings more than 30 years of banking experience to Bank of Internet, and is credited with creating one of the first Internet bank marketing sites, as well as opening what may be the first non-USA based new deposit account from the Internet-he also has the added quirk of counting finance amongst the few hobbies he has time for!"

Even in the face of a volatile economy, Englert said he remained optimistic about the future, and of the banks continued ability to drive growth.