Ally Bank Case Summary

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The following is a case analysis of Ally Bank, a subsidiary of Ally Financial Inc. Ally Bank strives to offer its customers a different experience when it comes to banking. Most banks offer many location and hundreds of ATM machines that are ready and available to use. Whereas, Ally Bank, is not found in towns or your nearest city. Ally Bank is far different than most banks and only has two locations, and does not own one ATM machine.
The new era in banking is what Ally Banks has to offer. We may not be able to walk into a brick and mortar building…but you are able to reach someone 24/7 anytime one wants, and have instant online banking availability. Ally Bank boasts that they do not pay rent on building instead they pass that savings along to the customer. Ally Bank, a subsidiary of Ally Financial Inc., originally stemmed from General Motors Acceptance Corporations, otherwise known as GMAC. GMAC was founded in 1919 and was the key provider of automotive financing to its dealerships. …show more content…

The deal of Ally Bank happened as part year-end deal with the Federal Reserve. Of course, the birth would create controversy. GMAC became a bank holding company, and days later the US Treasury publicized it would invest $5 billion of its Troubled Asset Relief Program (TARP) fund in GMAC and obtain preferred shares in return. Five month later, Ally Bank was born. Ally Financial (then GMAC), received $16 billion from the federal government and has yet to pay it back. Whereas, its competitors like Wells Fargo, Citigroup, and Bank of America have paid off bailout loans. GMAC needed to a new look by rebranding, and as the solution, Ally Bank was given life. One could pontificate that the rebranding happened at the expense of the tax payers, an expense of five billion

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