Here's the best part of BofI: Because it doesn't have physical branches, it has a massive cost advantage over other banks. This allows it to run an extremely efficient and profitable operation compared to other banks -- its return on equity (ROE) of 22.8% is more than double the industry benchmark, and its efficiency ratio of 32.4% is among the best in the business. Not only that, but it allows BofI to pay higher interest rates on its checking accounts and other deposit products, which gives it an advantage when it comes to bringing in new money.