Ally Financial is looking to capitalize on recent layoffs of tech talent to grow its own digital platforms despite potential economic turbulence to come this year. 

WHY IT MATTERS: The $191 billion bank plans to survey the workers being laid off at tech-driven companies and see who available, as major tech companies such as Amazon, Plaid, and Stripe have all cut their workforces, Chief Executive Officer Jeffrey Brown said during today’s earnings call.

“With respect to the technology space, and cyberspace, things like that, we think these are areas where you have to constantly invest in,” Brown said. “We think it’s kind of interesting what’s going on in the world of technology, [with] more layoff announcements throughout this week or this morning. And that may provide us an opportunity to bring in incremental talent.” 

THE BIG PICTURE: The Detroit-based bank’s noninterest expense of $1.2 billion was up 10% year over year, largely directed by “investments in our growing businesses and in technology,” Chief Financial Officer Bradley Brown said during the call. 

BY THE NUMBERS: Ally Financial reported for Q4: 

• Net income fell by 57% YoY to $278 million; and 
• Total net revenue grew by 9% sequentially to $2.2 billion but was flat YoY. 

STATE OF PLAY: Like Goldman Sachs, the executives acknowledged the potential of a rocky 2023 as a recession looms, with Bradley Brown saying the company expects it to be a “very dynamic [year]” and that Ally is “focusing on what it can control” in the year ahead. 

THE BOTTOM LINE: Ally Bank reported that it had 4 million customers by the end of 2022, a 5% increase since the end of 2021 and will continue making investments in technology in order to facilitate enhanced customer experiences, Bradley Brown said during the call. 

“We continue to drive the scale and diversification across our digital bank platforms,” he said. “As we’ve evolved, expanded, and enhanced our digital capabilities, our consumer lending products are resonating.” 

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