Ally Financial (ALLY - Free Report) has closed the deal to acquire Health Credit Services LLC, a point-of-sale payment provider. The transaction, announced in July, will help the company further enhance its product offerings.
Health Credit Services, based in Charlotte, NC, has roughly 85 employees. It is now an indirect subsidiary of Ally Bank. Notably, the existing management team of the firm will continue to lead operations.
Diane Morais, Ally Bank's president of consumer and commercial banking products stated, "The addition of health care services financing aligns well with Ally's strategy to expand our digital product offerings. In addition to being a leader in the healthcare financing segment, HCS has a customer-centric philosophy that makes it a natural fit with Ally. The powerful combination of the HCS expertise in point-of-sale financing and the fact that the technology, cultures and customer-focused mindsets at our respective companies are in alignment, provides a strong foundation for future expansion in the segment."
Ally Financial has been undertaking efforts to diversify operations. As part of this strategy, the company has forayed into the mortgage business, which is expected to aid earnings growth. It is also making efforts to enhance its digital offerings and introduce new products to further boost profitability.
Further, Ally Financial’s wealth management and online brokerage initiatives related to the credit card offerings are impressive. Also, the acquisition of TradeKing (in 2016) continues to support the company in improving its product offering and digitizing financial operations.
Similar to Ally Financial, several financial firms are undertaking measures to improve revenue mix and diversify footprint. In the recent past, financial institutions including LPL Financial Holdings Inc. (LPLA - Free Report) , Stifel Financial and Valley National Bancorp (VLY - Free Report) have announced/closed buyouts that are expected to further support their financials.
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