Who Acquired Ally Bank Recently

Ally Bank has been acquired by a financial services giant.

In 2020, Ally Bank was acquired by a large financial institution, but it's not the most recent one.

The most recent acquisition of Ally Bank was by a private equity firm.

This acquisition was finalized in 2023, marking a significant shift in the bank's ownership.

Ally Financial Inc. paid $275 million to acquire TradeKing last April, betting on its potential to attract millennials to self-directed online trading.

The acquisition has allowed Ally to integrate TradeKing into its business and rebrand it as Ally Invest, creating a seamless experience for clients who have both bank and investment accounts with the company.

Ally has a strong presence among millennials, with 55% of its new banking customers falling into this demographic.

In 2008, Ally Bank acquired a $5.6 billion portfolio of assets from General Motors Acceptance Corporation (GMAC), including $3.4 billion in delinquent loans.

This purchase marked a significant shift in Ally's business strategy, allowing the bank to expand its consumer lending operations.

Ally Bank's acquisition of the GMAC assets provided the bank with a substantial portfolio of auto loans and leases, which helped to establish it as a major player in the automotive finance market.

The deal also gave Ally access to a large customer base, including many individuals who had previously done business with GMAC.

The purchase of GMAC's assets was a key factor in Ally's growth and success in the years that followed.

Ally Financial Inc. paid $275 million to acquire TradeKing last April, betting on the potential of self-directed online trading among millennials.

The acquisition was a strategic move to tap into the growing market of robo-advisors, particularly among younger investors who haven't yet signed up with a robo-advisor.

Rich Hagen, the former president of TradeKing, now heads up Ally Invest, which has spent the last 12 months integrating TradeKing into the business and rebranding it.

Ally Invest aims to resonate with millennials by integrating its online banking capabilities with its investment platform, allowing customers to easily move money between their bank and investment accounts.

The robo-advisor market is indeed getting crowded, with traditional financial firms like Bank of America Merrill Lynch and Wells Fargo entering the space.

According to a LendEDU survey of 502 millennials, 53.59% of respondents aren't using a financial advisor to help them invest, while 61.58% said they haven't used a robo-advisor because they didn't know it existed.

Ally's strong suit in technology presents an opportunity for the company to capitalize on the growing demand for easy-to-use and understandable investment platforms among millennials.

Ally Bank's recent announcement of an Amazon Alexa skill for its mobile banking clients is a testament to the company's commitment to embracing technology, which is likely to make its way to Ally's online investing platform as well.

With its Ally Invest portfolio already comprising over 25% millennial investors, the company is well-positioned to tap into the growing market of younger investors.

Ally Bank was acquired by Bank of America for $4.9 billion in cash.

The acquisition was announced in July 2023 and completed in December of the same year.

The deal was subject to regulatory approval, which was obtained in October 2023.

Bank of America gained over 300 Ally Bank branches as a result of the acquisition.

Ally Bank's customer base of over 5 million customers was also absorbed by Bank of America.