Ally Financial reportedly considering sale of credit card business
US-based online bank, lender and trading platform Ally Financial is reportedly considering the sale of Fair Square Financial, the credit card business it acquired for $750 million in 2021, according to Bloomberg, which cites sources familiar with the matter.
Ally Financial reportedly considering sale of credit card business
The financial services company, which specialises in auto financing, is reportedly searching for a buyer for the business in collaboration with a financial consultant.
Although currently boasting $2.17 billion in credit card loans, according to its Q3 2024 financial statement, the potential sale would signal Ally’s continued migration away from consumer lending.
In January this year, Ally sold its point of sale (POS) financing business, Ally Lending, to Synchrony along with $2.2 billion in loan receivables.
Then-CEO Jeff Brown described the decision to sell Ally Lending as part of “a broader initiative to invest resources in growing scale businesses”, while also allowing Ally to allocate capital to “optimise risk-adjusted returns as we manage through a dynamic operating environment”.
New leadership appointments
Meanwhile, Ally has announced several new leadership appointments to “further position the company for the future”.
These include promoting Stephanie Richard from chief audit executive to chief risk officer, succeeding Jason Schugel, who will now transition to an interim senior advisor role before leaving the company at an undisclosed date.
Meghan Ryan has now been installed as Ally’s chief audit executive, after serving as CFO of the company’s consumer and commercial banking businesses for the past six years.
Additionally, Lindsay Sacknoff will join Ally as head of deposits and invest, effective 13 January, moving directly from the United Services Automobile Association (USAA).
