Ally Financial continues to invest in digital capabilities throughout its product suite to improve customer experience.

“We’ll continue finding ways to disrupt the industry and remove friction for customers by delivering leading digital experiences,” Chief Executive Jeffrey Brown said today during the bank’s earnings call.

THE BIGGER PICTURE: Ally’s digital investment played a role in an increase in noninterest expenses for the quarter, which grew 13% year over year to $1.3 billion, reflecting “investments in our businesses and in technology,” Bradley Brown, corporate treasurer and interim chief financial officer, said during the call. This follows the bank’s increase in technology expenses in Q4 2022.

BY THE NUMBERS: Ally reported for Q1:

• Total net revenue fell by 1.6% YoY to $2.1 billion; and
• Net income fell 51% YoY to $319 million.

NOTEWORTHY: The lender looked to digital outreach to notify clients based on their stage of delinquency on auto loans, according to the earnings presentation.

“Loss rates remain favorable versus pre-pandemic levels given the strategic actions that we’ve taken across servicing and collections, which include increased digital outreach and repo timing update,” Bradley Brown said. The communication with customers allows clients to work with Ally to avoid repossession.

FLASHBACK: Jeffrey Brown said during the bank’s previous Q4 2022 earnings call that it had begun looking into the layoffs happening at fintechs for potential tech talent despite the economic turbulence expected later this year, noting, “That may provide us an opportunity to bring in incremental talent.”

In Q1, Ally did not break out a workforce or hiring update.

MARKET REACTION: Ally Financial’s stock was up 2.23% at market close today, compared with $26.85 at market close Tuesday.