Now that the acquisition of Ally Credit Canada, the Canadian auto finance arm of Ally Financial, is official, Royal Bank of Canada is gearing up to integrate operations — leaving some employees’ jobs hanging in the balance.
RBC’s $1.4-billion acquisition of Ally Credit Canada and ResMor Trust, which offers deposits via independent brokers and other products, were completed earlier this month following regulatory approval.
RBC will integrate Ally’s auto financing business into its own auto unit. Prior to the sale, Ally Financial’s Canadian arm provided financing to roughly 600 dealerships across the country. As of October 2012, its consumer business had nearly 450,000 loans outstanding. An RBC spokesman would not say if Ally employees would be laid off or if existing offices would close due to the completion of the acquisition.
In recent months, Ally Financial has sold a host of international operations to repay its $17.2 billion U.S. government bailout.
I agree with Daniel. This web site is named Bankinnovation.com but the comments are not discussing innovative ways to help customers and financial intermediaries both win. This repo type of conversation has been around for decades.
Is anyone doing any innovative financial help for slow payers such as using the internet to structure their budget, help them follow a budget, get direct payments from income source quicker to the bank, helping the customer understand the consequences on their credit score through simulation, looking to see if they are overwithholding on taxes, contributing too much to a 401K, loooking to see if they can qualify for a payment program on their credit cards, etc, etc. The innovative banks that will do that can develop customer loyalty. Look at the satisfaction polls that are distributed via this web site and ask the question – How satisfied is a customer when you are repoing their car? Based on the stats at the start of the article, 0.77% will never do business with you again if you just repo without a serious desire to remedy the situation. Granted, sometimes there is no alternative but often ther is. Ideas anyone?