Auto lender Ally Financial Inc on Tuesday has announced it’s buying subprime lender CardWorks for $2.65 billion. Ally Fin. looks to diversify its consumer product offerings, supported by a growing and low-cost deposit base.
Despite the decline, the fintech industry's performance in 2022 still beats its performance from two years ago, with funding increasing by 52% compared to 2020.
The company has 850,000 customers across its different businesses and is on track to be profitable for the full year in 2023, the first time since its founding 17 years ago.
As interest rates remain high, borrowing will continue to play a significant role in helping these businesses achieve their goals.