Ally Financial Inc. is building up its direct auto lending with the acquisition of BlueYield, an online auto lender exchange based in Aliso Viejo, Calif., Ally Chief Executive Jeffrey Brown said during the company’s third-quarter earnings call Wednesday.
“The auto space, just like the rest of financial services, is going more and more digital, and this acquisition will support us, delivering a digital auto financing process to serve both dealers and consumers,” Brown said. “We fully believe dealers will continue to play a central role in the purchasing and financing process, but obviously it’s important for us to establish new partnerships and technologies to ensure we play a leading role.”
Terms of the acquisition, which closed in the third quarter, were not released. The BlueYield purchase is aimed at not only building up Ally’s direct portfolio, but driving an “end-to-end digital platform,” Brown added.
Ally’s 3Q auto originations were down 16% year over year, while delinquencies were up to 2.81%, from 2.60% at the same time a year ago.
In order to provide “incremental volume and diversification,” to its portfolio, Ally added an experienced transportation and equipment finance team in 3Q, which will provide commercial financing to companies and municipalities for the purchase or lease of vehicles and equipment such as heavy-duty trucks, trailers, buses, and cargo vans, the company said in a press release.
