Ally Financial Inc. plans to add more direct-to-customer offerings to its digital services, Chief Executive Jeffrey Brown said during the company’s first-quarter earnings call last week. The lender is making changes in anticipation of the digital-centric growth it believes will continue to advance in the auto finance sector.
“Obviously, we generate $35 [billion] to $40 billion of originations today through an indirect model,” Brown said. “But as we think about technology and how consumers transact today, some direct-to-consumer offering may be important over the long run.” The indirect model is not going away, he clarified, but Ally is looking at technologies to be “more direct with the end consumer.”
This news comes on the heels of Ally’s acquisition of the digital wealth management company, TradeKing Group, for $275 million. TradeKing, and its digitally savvy consumer base, will be integrated into Ally’s portfolio of services before yearend. Last week, Beepi tapped Ally to be the lease provider for used cars purchased through its online marketplace.
