Its One Ally strategy is meant to help the bank with personalization and cross-selling. Credit: Tiffany Hagler-Geard/Bloomberg
Ally Financial has almost completed a key phase of One Ally, a set of strategies and goals that the company teased as far back as its Investor Day in 2016.
One Ally involves amassing all business lines and customer data on one platform as the company strives to deliver "experiences" rather than "products." By the end of 2023, Ally customers will have a single sign-on for all product lines, from checking to auto loans to investments. Moreover, by consolidating all customer data from all business lines in one place, the company will be able to build and refine models that personalize interactions and better cross-sell products to existing customers.
This goal reflects the ideal for many online-only banks, said Michael Miller, an equity analyst at Morningstar.
"A lot of these digital banks are trying to build multiproduct lines," he said, but true multiproduct online-only banks are rare.
Although the core of Ally's business is auto loans, said Miller, the company has pushed into other lines, for instance with its acquisition of credit card issuer Fair Square Financial in 2021.
Sathish Muthukrishnan, chief information, data and digital officer at the $197 billion-asset bank, spoke about One Ally on a panel at American Banker's Digital Banking conference in June.
"We have a full suite of products that have grown organically. We've reached a point in time where we have to bring all of the customers and products together," he said. "One Ally is a journey we are embarking on where we want to move from a product company to an experience company. Customers are not going to shop for an auto loan. They are not shopping for a home mortgage. They are looking for a house to create memories and raise their family, they are looking for transportation. They are looking to save money and grow their wealth."
One Ally dovetails with the Detroit bank's broader cloud computing strategy; the company is moving all applications to private and public clouds, including AWS and Microsoft Azure. Momentum around cloud computing in banking has been building for several years. Cloud computing was on the list of the top five 2023 spending priorities for more than 40% of U.S. bank executives who responded to an Arizent/American Banker survey released at the end of 2022.
Story continues
"[One Ally] requires a ton of work in technology that includes getting rid of our older technology and making sure we modernize our network, building up our cloud infrastructure and bringing all of the data together," said Muthukrishnan at Digital Banking.
This makes sense to Miller.
"With indirect lending you're not really developing a deep pool of data on the customer. Ultimately when they pay off the loan, they're gone," said Miller. "With the deposit and investing relationships, and maybe credit cards and personal loans, you're developing a much broader pool of data and there is a lot more value in being able to store and access data effectively and utilize it in different product lines. The cloud transition is a lot more relevant to some of these business lines Ally has been expanding into."
So far, all Ally product lines except auto loans are available through a single sign-on and a unified technology platform; the company is working on adding auto to the mix by the end of 2023. By centralizing customer data on this one platform, the company will gain better context around customer interactions, transactions and communication to detect preferences.
One goal is to better personalize interactions by building models using artificial intelligence and machine learning, which will help Ally refine the way it cross-sells or surfaces products for customers, highlights a high deposit rate or sends relevant push notifications. Another is to enhance customization options, for instance letting customers choose which accounts are visible upon login and in which order. This will improve upon current customization functionality, which Ally calls Snapshot.
These personalization and cross-selling efforts are already underway. More than 85% of investing customers and almost 70% of mortgage customers started as deposit customers. Ally has also created one-click account opening for deposit customers to open additional deposit accounts.
But consolidating customer data in one place "is not easy without doing the heavy lifting of modernizing the infrastructure and network," said Muthukrishnan in an interview. "With one single platform that supports multiple businesses, I now have a higher bar for availability, resiliency and recovery. This platform cannot afford to be taken down for maintenance. It needs to be able to handle the volume that comes through multiple businesses."
Ally finished building an internal cloud in 2020, so engineers could rewrite their applications to run well on the cloud and run confidential applications. In parallel, Ally started adopting public cloud technology through AWS and other third-party vendors.
"Cloud has become critical for us in our ability to always be available for our customers," said Muthukrishnan.
More than two-thirds of Ally applications are now cloud-enabled, running either on the internal or external cloud. The goal is for all applications to be cloud-enabled by 2025.
Link:
Ally builds single sign-on for customers, pushes further into the cloud - Yahoo Finance
- 5 Questions Schools Should Ask Before Selecting a Cloud Security Platform - EdTech Magazine: Focus on K-12 - December 8th, 2023 [December 8th, 2023]
- Marvell Extends Connectivity Leadership for Accelerated Computing With Two Cloud-Optimized PAM4 Optical DSPs - PR Newswire - December 8th, 2023 [December 8th, 2023]
- Commission green lights state-aid partnership for cloud computing - Research Professional News - December 8th, 2023 [December 8th, 2023]
- EU approves 1.2 billion to boost local cloud - Computing - December 8th, 2023 [December 8th, 2023]
- How organizations can learn from cloud security breaches - TechTarget - December 8th, 2023 [December 8th, 2023]
- EU provides 1.2 billion euros for European cloud computing project - Notebookcheck.net - December 8th, 2023 [December 8th, 2023]
- Highlights from Gartner IT IOCS Conference 2023, Las Vegas - Gartner - December 8th, 2023 [December 8th, 2023]
- The EU just launched a 1.2 billion cloud project to crack US dominance - ITPro - December 8th, 2023 [December 8th, 2023]
- CoreWeave backed by Fidelity and Jane Street at $7 billion valuation as cloud provider bolsters status as one of AIs hottest startups - Fortune - December 8th, 2023 [December 8th, 2023]
- Insurtechs using AI, ML and cloud computing. - Digital Insurance - December 8th, 2023 [December 8th, 2023]
- Broadcom to divest VMware's end-user computing and Carbon Black units - The Register - December 8th, 2023 [December 8th, 2023]
- Australia building 'top secret' cloud to catch up and link with US, UK intel orgs - The Register - December 8th, 2023 [December 8th, 2023]
- CORRECTION-Nvidia in talks with Malaysia's YTL on data center deal- sources - Yahoo Eurosport UK - December 8th, 2023 [December 8th, 2023]
- NCS announces strategic partnership with Google Cloud to accelerate digital transformation in Asia Pacific, ETCIO SEA - ETCIO South East Asia - December 8th, 2023 [December 8th, 2023]
- McDonald's and Google Cloud Announce Strategic Partnership to Connect Latest Cloud Technology and Apply ... - PR Newswire - December 8th, 2023 [December 8th, 2023]
- Computing Power Market Revenue to Total USD 81.3 Billion by 2032 | Growing Investments In Data Centers - GlobeNewswire - December 8th, 2023 [December 8th, 2023]
- Aqua Security on how to navigate the Cloud's complexities - IT Brief Australia - December 8th, 2023 [December 8th, 2023]
- NCS partners with Google Cloud in Australia and Singapore - Channel Asia Singapore - December 8th, 2023 [December 8th, 2023]
- GigaIOs SuperNODE to Power TensorWave Deployment with AMD MI300X - High-Performance Computing News ... - insideHPC - December 8th, 2023 [December 8th, 2023]
- This $500 device lets you easily build your own Cloud Server instead of paying Google, Microsoft, or Amazon - Yanko Design - December 8th, 2023 [December 8th, 2023]
- What's Going On With Alibaba Cloud? - The Motley Fool - November 26th, 2023 [November 26th, 2023]
- China's Alibaba shakes up cloud unit management after scrapping the division's IPO - CNBC - November 26th, 2023 [November 26th, 2023]
- Five things to look for at AWS re:Invent 2023 - SiliconANGLE News - November 26th, 2023 [November 26th, 2023]
- Broadcom completes its $61 billion acquisition of VMware - Times of India - November 26th, 2023 [November 26th, 2023]
- On the Rise: The Top 3 Cloud Computing Stocks to Watch - Nasdaq - November 26th, 2023 [November 26th, 2023]
- What You Need to Know About Hybrid Cloud Computing - What You ... - InformationWeek - November 26th, 2023 [November 26th, 2023]
- Microsoft to invest $500 million to expand hyperscale cloud computing and AI in Quebec - MarketWatch - November 26th, 2023 [November 26th, 2023]
- Service Included, FinOps Foundation Counts Cost Of Cloud - Forbes - November 26th, 2023 [November 26th, 2023]
- Microsoft Unveils Azure Custom Chips: Revolutionizing Cloud Computing and AI Capabilities - MarkTechPost - November 26th, 2023 [November 26th, 2023]
- Why 2023 Became the Year of Next-Level Technology Value - Medium - November 26th, 2023 [November 26th, 2023]
- Edge vs Cloud or Edge plus Cloud: What is the way forward? - Express Computer - November 26th, 2023 [November 26th, 2023]
- eSurfing Cloud Launches the WisHub One-Stop Intelligent ... - PR Newswire - November 26th, 2023 [November 26th, 2023]
- Predictive Maintenance (PdM) Market to grow by USD 16.57 billion growth between 2022 - 2027 | Growth Driven by Increased adoption of advanced... - November 26th, 2023 [November 26th, 2023]
- Udemy Partners with Google Cloud as Inaugural Member of its New ... - AiThority - November 26th, 2023 [November 26th, 2023]
- AWS and DXC Technology Strengthen Alliance for Cutting-Edge ... - Read IT Quik - November 26th, 2023 [November 26th, 2023]
- Windows-as-an-app is coming - Computerworld - November 26th, 2023 [November 26th, 2023]
- 2 Soaring Stocks I'd Buy Now With No Hesitation - The Motley Fool - November 26th, 2023 [November 26th, 2023]
- ZTE holds Core Network User Congress in Thailand, driving digital ... - ZTE - November 26th, 2023 [November 26th, 2023]
- Mercedes F1 accelerates AI adoption in off-track IT transformation ... - ITPro - November 26th, 2023 [November 26th, 2023]
- Amazon wants to train millions of people in basic AI skills - TechRadar - November 26th, 2023 [November 26th, 2023]
- US grid rules preclude reliability, security benefits of cloud ... - Utility Dive - November 17th, 2023 [November 17th, 2023]
- Udemy Partners with Google Cloud as Inaugural Member of its New Cloud Endorsed Content Program - Yahoo Finance - November 17th, 2023 [November 17th, 2023]
- Google Cloud certifications nab highest-paying IT jobs - InfoWorld - November 17th, 2023 [November 17th, 2023]
- Nearly a quarter of businesses are losing more than 100,000 a ... - CloudTech News - November 17th, 2023 [November 17th, 2023]
- Cloud Security Alliance announces new zero-trust security credential - CSO Online - November 17th, 2023 [November 17th, 2023]
- Cloud Computing Market size to reach USD 2,495.2 billion by 2032 according to a new research report - WhaTech Technology and Markets News - November 17th, 2023 [November 17th, 2023]
- Vultr and Rescale Advance High-Performance Computing to Accelerate Engineering Innovation Worldwide - Yahoo Finance - November 17th, 2023 [November 17th, 2023]
- Cloudsky Showcases Breakthroughs in Cloud Computing at 2023 ... - PR Newswire - November 17th, 2023 [November 17th, 2023]
- Edenor reduces outages using cloud computing technology - Utility Week - November 17th, 2023 [November 17th, 2023]
- Software Growth Stocks: Consumption-Based Pricing Back In The ... - Investor's Business Daily - November 17th, 2023 [November 17th, 2023]
- High Availability Server Market to Cross USD 27.30 Billion in 2030 Driven by Rising Dependence on Digital Infrastructure and Surge in Cloud Computing... - November 17th, 2023 [November 17th, 2023]
- Micro Data Centers Market to Reach US$ 33.4 Billion by 2030, Driven by Growing Demand for Edge Computing and Cloud-Based Applications | According to... - November 17th, 2023 [November 17th, 2023]
- The 10 Coolest AI Tools And GenAI Products Of 2023 - CRN - November 17th, 2023 [November 17th, 2023]
- Civo CEO on free credits, egress fees, and hauling it all back on-prem - The Register - November 17th, 2023 [November 17th, 2023]
- Tech Headlines of the Week: Data Breaches, Microsoft's AI ... - Techopedia - November 17th, 2023 [November 17th, 2023]
- Vultr Announces Addition of NVIDIA GH200 Grace Hopper ... - Business Wire - November 17th, 2023 [November 17th, 2023]
- Proposed Rules Overhaul Cybersecurity Requirements for ... - JD Supra - November 17th, 2023 [November 17th, 2023]
- The #CloudExit Movement And What It Means For Amazon Stock ... - Seeking Alpha - November 17th, 2023 [November 17th, 2023]
- Nasdaq Completes Migration of Third US Market to AWS - Markets Media - November 17th, 2023 [November 17th, 2023]
- CSIT and Google Cloud partner to pilot sovereign cloud solution in ... - ETCIO South East Asia - November 17th, 2023 [November 17th, 2023]
- Qualcomm Cloud AI 100 Now Available in the Cirrascale AI ... - HPCwire - November 15th, 2023 [November 15th, 2023]
- ZTE and Computer Union join forces on cutting-edge IT solutions in ... - ZTE - November 15th, 2023 [November 15th, 2023]
- VAI Resort Taps Oracle Cloud to Deliver Rock-Star Guest Experiences - Oracle - November 15th, 2023 [November 15th, 2023]
- Oracle Helps Healthcare Organizations Improve Inventory ... - Oracle - November 15th, 2023 [November 15th, 2023]
- Paraverse Technology Releases Groundbreaking White Paper on Decentralized Operations and Trading Platforms for 3D Digital Assets - Yahoo Finance - November 15th, 2023 [November 15th, 2023]
- How to Leverage New Age Cloud Technologies for Business - Analytics Insight - November 15th, 2023 [November 15th, 2023]
- Cloud to help realise smarter AI-powered digital twins - FutureIoT - November 15th, 2023 [November 15th, 2023]
- NTT Beats New Drum To Bring Photonics-Powered AI To Industry - Forbes - November 15th, 2023 [November 15th, 2023]
- Gartner: Modernising legacy applications for cloud-native success - ComputerWeekly.com - November 15th, 2023 [November 15th, 2023]
- Alibaba Cloud and United Women Singapore launch digital female ... - ETCIO South East Asia - November 15th, 2023 [November 15th, 2023]
- KBZ Bank Digitizes for Innovation and Scale with Oracle - Oracle - November 15th, 2023 [November 15th, 2023]
- Southeast Asia's digital battle: Chinese and U.S. Big Tech face off ... - Nikkei Asia - November 15th, 2023 [November 15th, 2023]
- Vietnam Cloud Based Infrastructure as a Service Markets, Competition, Forecast & Opportunities, 2028F: Government Initiatives and Increasing... - November 15th, 2023 [November 15th, 2023]
- Cloud to drive surge in European IT spending next year - ITPro - November 15th, 2023 [November 15th, 2023]
- Oak View Group Partners with Oracle to Supercharge Fan ... - Oracle - November 15th, 2023 [November 15th, 2023]
- Momentus Inc. Announces Third Quarter 2023 Financial Results - Daily Host News - November 15th, 2023 [November 15th, 2023]
- Community and Critical Access Hospitals Select Oracle Health ... - Oracle - November 15th, 2023 [November 15th, 2023]
- AiAdvertising Reports Third Quarter 2023 Financial Results - Daily Host News - November 15th, 2023 [November 15th, 2023]
- GIC chief says investors should prefer Big Tech to start-ups on AI - Financial Times - November 15th, 2023 [November 15th, 2023]
- Daniel Seybold, Author at The New Stack - The New Stack - November 15th, 2023 [November 15th, 2023]