LAS VEGAS — Digital bank Ally Financial‘s multiyear restructuring initiative reduced headcount, streamlined operations and implemented new technology, and now the $197 billion bank aims to deploy the resources it has saved toward its auto lending and corporate banking arms, Chief Executive Michael Rhodes said during a panel at Fintech Meetup 2025 in Las Vegas this week.
Rhodes referred to “the power of focus” as the bank’s new multiyear corporate strategy at the event. “If you operate in workplaces this large, you want to marshal your resources, your attention and your energy and your time,” Rhodes said. “We absolutely think we can do that by focusing on the core businesses.”
Deploying new tech
Ally has been working with its auto dealer communities to develop technology to make them more efficient, he said. The bank is developing and deploying technology for efficiency while cultivating deeper relationships with clients, Rhodes said at the event this week.
“Collection is the ultimate high-tech, high-touch business,” Rhodes said. Data is key when interacting with clients to get a better picture of their financial standing, he added.
Technology also allows Ally to reach out to clients through a variety of channels, he said, adding that some are more responsive to texts than email.
The cloud helps the bank better manage structured data sets and deploy scalable solutions, he noted.
Ally works with Microsoft Azure and Amazon Web Services for cloud needs and aims to have a hybrid cloud approach to keep sensitive consumer data in-house, as BAN has previously reported.
“If you operate in workplaces this large, you want to marshal your resources, your attention and your energy and your time. We absolutely think we can do that by focusing on the core businesses.”
— Ally CEO Michael Rhodes
Restructuring
As part of its restructuring efforts, Ally sold its credit card business to card service provider CardWorks and aims to exit its mortgage business this year, the Detroit-based bank reported during its fourth-quarter earnings call on Jan. 22.
Additionally, the bank sold its point-of-sale operations to payments company Synchrony in January 2024 to focus on its core offerings like auto loans, Bank Automation News reported at the time.
As the bank looks to exit businesses, it is also trimming headcount, eliminating nearly 5% of its workforce. Ally had 11,000 employees in January, according to published reports.
“This action is expected to contribute more than $60 million in annual savings, drive positive operating leverage and align the cost structure with our new streamlined footprint,” Rhodes said during the Q4 earnings call.
