![]() "And yet they've done virtually nothing." It will be tough sledding for another bank to come in, he added. "They have a strong brand, they're paying well above ING Direct on their savings account and they have a robust credit card base to market to," he said. government, is selling the majority of its mortgage servicing rights portfolio to Ocwen. But financial industry consultant David McVay said Ally will still have to contend with what he believes is an overcrowded market for online banks. The banking unit of Ally Financial, the bailed-out auto lender that is 74 percent-owned by the U.S. These rates do stand out, comparatively speaking. ![]() Yesterday, some financial institutions posted rates as low as 0.15 per cent for cashable one-year GICs (please, no one tell me they bought one of these). With most banks, a redeemable GIC means a big sacrifice on rates. Through our long-standing relationships with auto. We are a global provider of auto finance solutions, with operations in North America, South America and Asia. GM Financial is the wholly owned captive finance subsidiary of General Motors and is headquartered in Fort Worth, Texas. The one-year GIC offered by Ally pays a highly competitive 1.75 per cent, has no minimum investment and can be redeemed penalty free, with interest paid up until the day you call to get out. GM Financial Is A Global Provider Of Auto Finance Solutions. Obviously, Ally's first credibility check will be whether it maintains the current return. What we've chosen to come out with is a great rate, but it's not something crazy."Īlly's no-fee High Interest Savings Account pays 2 per cent, which is just below the leading 2.1-per-cent rate from Peoples Trust and well ahead of competitors like ING Direct and ICICI Bank Canada. "The easiest thing is to come out with an eye-popping rate. Spero, managing director of Canadian deposits for ResMor Trust. "We're not going to hide behind asterisks and fine print and any sort of sneaky teaser campaigns," said Mr. For example, it's pledging not to offer a high initial rate of return on its high-rate savings account and then lower it once a bunch of people have set up accounts. ![]() It's a good little phrase, and Ally is demonstrably trying to back it up. In a marketing campaign on TV and in print, you'll see taglines like "We make money with you, not off you." But they still uniformly despise them."Īlly will exploit this by casting itself as the straight-talking, do-the-right-thing bank. "People know their money is going to be safe with the banks, and I think the credit crisis has reinforced that. Spero said his research shows that Canadians have pretty much the same attitude toward their banks now as they did back then, which is to say there's a high level of trust but little else. Leading the introduction of Ally in Canada is Mike Spero, who more than a decade ago helped develop the online bank President's Choice Financial, a joint venture by Loblaw grocery stores and Canadian Imperial Bank of Commerce.
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