Once known as GMAC, Ally Bank has a deep background in auto finance, dating back to 1919. As the company modernized, it moved into mortgages and banking, and today it has an interest in deposits, home loans, insurance, investments, consumer lending, and corporate finance. Their Investor earning reports, published October 12, 2021, provides details.
Ally’s recent announcement to enter into the credit card business creates an opportunity to leverage existing products and expand into the profitable U.S. credit card business. In addition, their recent announcement to acquire Fair Square puts them into a highly competitive market, with a substantial upside. Fair Square reports $763 million in subprime balances, and since 2017, has delivered a compounded annual growth rate of 74%. Like many others, Fair Square focuses on the digital channel. The deal is set to close in 1Q2022.
