Online Banking

Ally Bank CEO on Why the Online Banking Model Works

The online only banking model used by Ally Bank ( ) is benefiting both shareholders and customers, according to Diane Morais, the president and CEO of Ally. ‘The beauty of the online model is that because we don’t have expensive branches, we’re able to translate that savings in the form of better interest rates and lower fees to consumers,’ said Morais, who added that the bank adds new customers weekly. Morais says Ally Bank continues to diversify its business, expanding beyond its original portfolio of auto loans. The financial firm launched a card card in June, and recently purchased an online wealth management company. Morais added Ally Bank plans to start offering mortgages in the end of the fourth quarter.

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