Dive Brief:
- Executives at Ally Financial credited its customer service, digital experience and consumer-friendly approach to fees for high customer satisfaction and retention rates during a Q1 2024 earnings call last week. Ally offers banking, investing, home loans and auto finance services.
- Ally maintained an “industry-leading” customer retention rate of 96%, according to its earnings release. Its customer satisfaction scores rose to above 90% and its NPS remained favorable, CFO Russ Hutchinson said on the call.
- “We pride ourselves on providing best-in-class customer experiences and a strong value proposition that extends beyond rates,” said Doug Timmerman, interim CEO and president of dealer financial services. “We have expanded our products and features to deepen customer relationships, including Ally Home and Ally Invest; and Credit Card and Corporate Finance are businesses that diversify revenue and improve our consolidated profitability.”
Dive Insight:
Ally is banking on superb customer service and an array of products to keep customers happy and engaged.
Last month, Ally Home, the residential mortgage lending arm of Ally Bank, expanded its offerings with a new home grant program and search tool to identify grant-eligible properties.
“We continue to serve as relentless allies to our customers with high levels of service through online, mobile, text and telephone as well as a consumer-friendly approach to fees, including leading the way on overdraft elimination,” Hutchinson said.
While the banking industry typically enjoys strong customer satisfaction — an EPAM Continuum survey found that more than 4 in 5 customers are satisfied with their banks — Ally has emerged as a leader.
Forrester gave Ally the second highest net promoter score for direct banks in its 2023 U.S. net promoter score rankings.
The bank reported $1.99 billion in adjusted net revenue in Q1, down 3% year over year for the period ending March 31. Michael Rhodes, the former CEO of Discover Financial Services, will take over as CEO of Ally starting April 29.
