Founded in 1919, Detroit, MI-based Ally Financial Inc. is a diversified financial services company providing a broad array of financial products and services, primarily to automotive dealers and their customers. It operates as a financial holding company (FHC) and a bank holding company (BHC).
Ally Bank is an indirect, wholly-owned banking subsidiary of Ally Financial. The company operates through the following primary business lines:
Dealer Financial Services (constituting 83.6% of total net revenues in 2021) comprises of Automotive Finance and Insurance segments. Automotive Finance segment provides retail installment sales financing, loans, and leases; term loans and other lines of credit to dealers; fleet financing, and vehicle remarketing services to consumers and automotive dealers. Insurance segment offers both consumer finance protection and insurance products. It also provides consumer financial and insurance products and underwrites selected commercial insurance coverages.
Mortgage Finance (2.7%) includes the management of the company’s held-for-investment consumer mortgage loan portfolio.
Corporate Finance (5.3%) provides senior secured leveraged cash flow and asset-based loans largely to U.S.-based middle market companies.
Corporate and Other (8.4%) consists of centralized corporate treasury activities, management of legacy mortgage portfolio, activity related to Ally Invest and Ally Lending (the company’s unsecured personal-lending business unit), and reclassifications and eliminations between the reportable operating segments.
In 2016, Ally Financial acquired TradeKing, a digital wealth management firm. In 2019, the company acquired Health Credit Services LLC. In December 2021, it acquired digital-first credit card company, Fair Square Financial.
As of Jun 30, 2022, Ally Financial had $185.7 billion in total assets, $125 billion in net total finance receivables and loans, $140.4 billion in total deposits, and $14 billion in total equity.