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Ally Financial's First CashBack Credit Card to Spur Growth?
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After exiting Troubled Asset Relief Program (“TARP”) in 2014, Ally Financial Inc. (ALLY - Free Report) has been making efforts to improve its digital offerings and introduce new products to boost profitability. To further expand its bank products, the Detroit-based company’s bank subsidiary, Ally Bank, has now officially forayed into the credit card business with the launch of Ally CashBack Credit Card program.
The Visa Signature card features a 10% bonus when a customer deposits the cash back rewards into an eligible Ally bank account. Also, the card offers rewards like 2% cash back on eligible gas and grocery purchases and 1% cash back on all other purchases to consumers. Notably, there are no spending caps on these rewards.
Moreover, a card buyer can avail a $100 bonus while making $500 in eligible purchases during the first 3 billing cycles. Also, the card can be added to Apply Pay and Samsung Pay.
"As we evaluated options to expand our product offerings, adding a credit card to our portfolio was a logical move since it has been a frequent request of our Ally Bank customers," said Diane Morais, chief executive officer and president of Ally Bank.
"The savviest consumers not only know what cards to pick, but how to maximize their rewards," Morais added. "When stacked against all the credit cards available to consumers, the Ally CashBack Credit Card is a highly competitive product."
The Ally CashBack Credit Card is issued by TD Bank N.A.
With the increasing popularity of cash back cards, Ally Financial’s entry into the same is a smart move. However, its first access to the credit card area will surely turn out to be a competitive affair with similar as well as superior cards already existing in the market.
JPMorgan Chase & Co.’s (JPM - Free Report) Chase Freedom card offers 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter and 1% cash back on all other purchases, while its Chase Freedom Unlimited card pays 1.5% cash back on all purchases.
Capital One Financial Corporation’s (COF - Free Report) Quicksilver card also pays 1.5% cash back on all purchases, whereas the Citi Double Cash card of Citigroup Inc. (C - Free Report) rewards 1% cash back on every purchase plus 1% when you pay for the purchase.
Ally Financial is gradually diversifying its revenue streams, which will help it in expanding its operations and boost its growth. The company recently entered the wealth management business with the acquisition of TradeKing Group.
Ally Financial currently carries a Zacks Rank #4 (Sell).
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Ally Financial's First CashBack Credit Card to Spur Growth?
After exiting Troubled Asset Relief Program (“TARP”) in 2014, Ally Financial Inc. (ALLY - Free Report) has been making efforts to improve its digital offerings and introduce new products to boost profitability. To further expand its bank products, the Detroit-based company’s bank subsidiary, Ally Bank, has now officially forayed into the credit card business with the launch of Ally CashBack Credit Card program.
The Visa Signature card features a 10% bonus when a customer deposits the cash back rewards into an eligible Ally bank account. Also, the card offers rewards like 2% cash back on eligible gas and grocery purchases and 1% cash back on all other purchases to consumers. Notably, there are no spending caps on these rewards.
Moreover, a card buyer can avail a $100 bonus while making $500 in eligible purchases during the first 3 billing cycles. Also, the card can be added to Apply Pay and Samsung Pay.
"As we evaluated options to expand our product offerings, adding a credit card to our portfolio was a logical move since it has been a frequent request of our Ally Bank customers," said Diane Morais, chief executive officer and president of Ally Bank.
"The savviest consumers not only know what cards to pick, but how to maximize their rewards," Morais added. "When stacked against all the credit cards available to consumers, the Ally CashBack Credit Card is a highly competitive product."
The Ally CashBack Credit Card is issued by TD Bank N.A.
With the increasing popularity of cash back cards, Ally Financial’s entry into the same is a smart move. However, its first access to the credit card area will surely turn out to be a competitive affair with similar as well as superior cards already existing in the market.
JPMorgan Chase & Co.’s (JPM - Free Report) Chase Freedom card offers 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter and 1% cash back on all other purchases, while its Chase Freedom Unlimited card pays 1.5% cash back on all purchases.
Capital One Financial Corporation’s (COF - Free Report) Quicksilver card also pays 1.5% cash back on all purchases, whereas the Citi Double Cash card of Citigroup Inc. (C - Free Report) rewards 1% cash back on every purchase plus 1% when you pay for the purchase.
Ally Financial is gradually diversifying its revenue streams, which will help it in expanding its operations and boost its growth. The company recently entered the wealth management business with the acquisition of TradeKing Group.
Ally Financial currently carries a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>