Ally GMAC has a rich history that dates back to 1919, when it was founded as GMAC, a financing company for General Motors.
GMAC played a crucial role in providing financing for car buyers, helping to make car ownership more accessible to the masses.
In 2006, GMAC was renamed Ally Bank, a move that marked a significant shift towards becoming a full-service bank.
Ally Bank has since grown to become a leading financial institution, offering a wide range of financial products and services to its customers.
Gmac Bank Rebranding
GMAC Bank has rebranded itself as Ally Bank, a move aimed at smoothing its image and attracting new customers.
The name Ally was chosen after extensive interviews with customers, who felt it aptly fit the character of the brand.
As of today, GMAC Bank has become Ally Bank, offering a range of savings products including no-penalty certificates of deposits, online savings accounts, and money market accounts.
The company has launched a new website, allybank.com, where customers can open accounts and take advantage of these new savings products.
GMAC Bank's rebranding effort is a clear attempt to distance itself from its troubled parent company, GMAC LLC.
CEO Fears Losing Leasing Business
GMAC Bank's rebranding effort is causing concern for its CEO, who fears losing the leasing business.
The leasing business is a significant portion of GMAC's revenue, accounting for nearly 30% of its total business.
GMAC's leasing business has been a key player in the market, with a presence in over 40 countries.
A major concern for the CEO is the potential loss of customers due to the rebranding, which could lead to a significant decline in revenue.
GMAC's leasing business has been a major contributor to the company's growth, with a 20% increase in revenue over the past year.
Gmac Bank Rebrands
GMAC Bank is now known as Ally Bank, a name that was chosen after extensive interviews with customers. The new name is meant to convey a sense of transparency and customer-centricity.
The rebranding effort is a clear attempt to distance itself from its troubled parent company, GMAC LLC. GMAC is jointly owned by automaker General Motors and an investor group led by private equity firm Cerberus Capital Management LP.
Ally Bank will offer a variety of savings products, including no-penalty certificates of deposits, online savings accounts, and money market accounts. Customers can open accounts on the new website, allybank.com.
The company needs $11.5 billion in capital, and the most likely source is the government itself. Treasury Secretary Timothy Geithner has said his department is poised to offer GMAC more help.
GMAC has struggled amid the collapse of the housing and auto markets, leading to sharp declines in new vehicle loan and home mortgage originations. The company has been trying to expand its consumer banking offerings to offset these losses.
Financial Company History
Ally Financial's history dates back to 1919 when it was founded by General Motors as the General Motors Acceptance Corporation (GMAC) to provide financing to automotive customers.
The company's early years were marked by significant growth, including the founding of Motors Insurance Corporation in 1939, which entered the vehicle insurance market.
In 1985, GMAC formed GMAC Mortgage and acquired Colonial Mortgage, as well as the servicing arm of Norwest Mortgage, which included an $11 billion mortgage portfolio.
GMAC Mortgage acquired Ditech in 1999, expanding its presence in the mortgage industry.
In 2006, General Motors sold a 51% interest in GMAC to Cerberus Capital Management, a private equity firm.
The company underwent a major rebranding in 2010, first changing its bank to Ally Bank in May, and then rebranding itself as Ally Financial in May of the same year.
Ally Financial continued to adapt and evolve, selling its resort finance business to Centerbridge Partners in September 2010.
The company sold its Canadian banking operations to Royal Bank of Canada for $3.8 billion in 2012, marking another significant milestone in its history.
In 2016, Ally Financial acquired TradeKing, a stockbrokerage, for $275 million, which was re-branded as Ally Invest.
Frequently Asked Questions
Is Ally a debt collector?
Yes, Ally Financial is a debt collector, in addition to being a consumer lender. They collect debts on behalf of other creditors as part of their services.
Is Ally still part of GM?
No, Ally Bank is not still part of General Motors, as it was spun off into a separate entity. Ally Bank is now owned by Ally Financial Inc, a distinct company.
Sources
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