Ally Bank is a unit of Ally Financial, headquartered in Detroit, Michigan, which became a bank holding company in December 2008. The bank is headquartered in Midvale, Utah. It operated two offices in the United States, one in Utah and one in Pennsylvania, and has 616 employees as of June 2009. The bank has no branches and customers handle their banking affairs entirely online. In 2008, Ally Financial participated in the bailout of U.S. banks, but as of 2014 the majority of shares in the company had been returned to public trading following an IPO.
Its Canadian operation, called Ally, was bought by the Royal Bank of Canada (RBC) in 2013, for $3.8 billion (CAN). It was indicated that Ally has been selling assets to repay its U.S. government loans. In Canada, Ally provided financing for 600 automotive dealerships across the country (and had 450,000 customers with personal deposits). RBC indicated this was a strategic purchase to become a dominant player in automotive financing. No new “Ally” accounts can be opened in Canada; in April 2013, the remaining Canadian savings accounts were closed with funds transferred to alternative institutions.
Ally Bank operates primarily as a direct bank that markets to customers offering savings products, including certificates of deposit (CDs), online savings accounts, money market accounts and checking accounts.