Ally Financial invested in its digital product strategy, which continues to boost customer retention rates.
“We have expanded our products and features to deepen customer relationships, including Ally Home and Ally Invest,” Interim Chief Executive Doug Timmerman said today during the bank’s first-quarter earnings call.
During the quarter, the bank launched Ally Home Grant, a $5,000 grant for eligible homeowners, according to a March 19 release. Along with the grant, Ally teamed up with HouseCanary to help identify grant-eligible properties and form the bank’s Ally ComeHome search portal.
“The home-buying process is overwhelming enough without the added complexity of identifying and securing the assistance you may need to afford a home in the first place,” Glenn Brunker, president of Ally Home, said in the release. “With the support of HouseCanary’s technical capabilities, we’re removing these hurdles by creating a one-stop shop with all the tools, resources and products a homebuyer needs throughout their entire journey.”
The bank has added offerings and efforts to serve clients through several digital channels, including online, mobile, text and phone, Chief Financial Officer Russ Hutchinson said.
“This approach has led to 95%-plus customer retention rates,” he said.
BY THE NUMBERS: In Q1, Ally reported:
- Net income of $157 million, down 50% year over year;
- Efficiency ratio of 64.9%, compared with 60.3% in Q1 2023;
- Total deposits $155 billion, up 1% YoY; and
- 103,000 net new retail deposit customers.
NOTEWORTHY: In March, Ally named Michael Rhodes as its new CEO.
He will take over on April 29, Timmerman said during today’s call.
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