Ally Financial emphasizes digital migration

Ally Financial continued to prioritize digital offerings and operational efficiency in the second quarter as its millennial and Gen Z client base grew. WHY IT MATTERS: The bank gained 86,000 customers in Q2, and 69% of those customers were millennial or younger generations, according to the bank’s earnings presentation. [caption id="attachment_57368172" align="alignright" width="300"] Photographer: Gabby Jones/Bloomberg [/caption] With the growth in Q2, Ally is approaching 3 million retail deposit customers, Chief Executive Jeffrey Brown said today during the bank’s earnings call, noting that “millennial and younger demographics represent most of the growth, which highlights the opportunity ahead.” As the customer base evolves, consumer preferences are changing, pushing the bank to migrate toward digital offerings, Bradley Brown , corporate treasurer at Ally, said during the call. BY THE NUMBERS: Ally reported in Q2: Noninterest expenses fell 17% YoY to $1.2 billion; Total deposits increased $13.9 billion YoY to $154.3 billion; and Total net revenue remained relatively flat at $2.1 billion. NOTEWORTHY: Ally continues to look to “high tech and high touch” offerings to provide digital capabilities to its clients, Bradley Brown said. For example, within its consumer and commercial banking business, the bank launched One Ally, a digital experience for credit cardholders, according to the presentation. “We’ll continue finding ways to disrupt the industry and remove friction for customers by delivering leading digital experiences,” Jeffrey Brown said. FUTURE LOOK: Ally has focused on growth in areas like technology, brand and hiring, but that will likely change given the current economic environment, Jeffrey Brown said. “It’s going to be a much different story entering 2024 … the controllables, the things that are within our power. Expect a very different expense trajectory of the company going forward.” [stock_market_widget type="inline" template="generic" assets="ALLY" markup="{name} ({symbol}) is trading at {price} ({change_pct}) as of {last_update}" display_currency_symbol="true" api="yf"]

Ally Financial emphasizes digital migration

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Ally Financial emphasizes digital migration

Noninterest expenses fell 17% YoY to $1.2B in Q2

Truist explores quantum computing with IBM

Citizens boosts tech spend 9% YoY in Q2

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