Ally reports strong deposit growth as it expands lending product suite

Ally Financial this week reported it's continuing its winning streak in deposit growth. In a third-quarter earnings report, the bank reported total deposits of $119.2 billion, up 18% year over year. Meanwhile, the bank’s customer retention rate stands at 96%, a level it characterized as “stable and strong.” Ally revealed that it has 1.94 million retail deposit customers, up 23% YoY. “Our customers continue to demonstrate strong loyalty to Ally, reflecting our overall value proposition and the long-term stability of the platform,” said Jennifer LaClair, Ally’s chief financial officer. [caption id="attachment_184457" align="alignright" width="400"] Ally Financial[/caption] She added that the bank will continue to invest in brand and technology. On the technology front, Ally said it will evolve its product offerings using the tools gained through Ally’s acquisition of lending technology company Health Credit Services (HCS), a transaction that closed last fall. “The acquisition that we closed on in October is largely a purchase of the platforms, so that would be an organic expansion of that platform into new verticals,” LaClair said. See also: No one-trick pony: How Ally got to $100B in deposits Ally said it plans to rebrand the lending technology it acquired through HCS as “Ally Lending” and through it, expand into new verticals, including home-improvement and auto loans. The company also plans to expand its point-of-sale loan offerings, a credit product that Chief Strategy Officer Dinesh Chopra recently told FinAi News offers the consumer complete transaction-level flexibility. On the auto lending side, Ally reported it had met its origination goal amidst the “heightened competition” in auto, LaClair said. Ally’s fourth-quarter loan and lease originations declined 1.2% YoY to $8.1 billion. The bank also highlighted its commitment to continue to grow digital customer experiences across all business lines. “We are innovative across all of our businesses — I wouldn’t say just on the deposit side,” LaClair said. “In auto you can see a lot of the partnerships that we’ve created with some of the new entrants [and] what we’re offering through Better.com is an absolutely top-notch digital, end-to-end customer [mortgage lending] experience that has some of the highest NPS scores across the industry.” Nicole Casperson of Auto Finance News contributed to this report. FinAi News Ignite, which will take place March 2-3 in Seattle, is a must-attend industry event for professionals overseeing financial technologies, product experiences and services. This is an exclusive, invitation-only event for executives eager to learn about the latest innovations. Request your invitation

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Ally reports strong deposit growth as it expands lending product suite

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Payfone partners with TransUnion to identify bank customers

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