DETROIT, June 1, 2016 -- Ally Financial Inc. (NYSE: ALLY) today announced that it has completed the acquisition of TradeKing Group, Inc., a digital wealth management company with an online broker/dealer, digital portfolio management platform, and educational content and social collaboration channels.
"The completion of this transaction marks a key step on Ally's journey to create a premier digital financial services company with a broader set of offerings to meet our customers' needs," said Ally Chief Executive Officer Jeffrey Brown. "Brokerage and wealth management are a natural fit for Ally's customer base, and the timing is right as more consumers gravitate toward digital wealth management services. We believe this transaction will drive meaningful value over time."
TradeKing will operate as a wholly owned subsidiary of Ally and maintain its operations in Fort Lauderdale, Fla., and Charlotte, N.C. The business has approximately 260,000 brokerage funded accounts and 20,000 daily average revenue trades (DARTs). TradeKing has approximately $4.5 billion in client assets, including approximately $1.1 billion of cash and sweep deposits.
"Ally has steadily built a loyal and digitally-savvy base of deposit customers, and we know there is opportunity to deepen those relationships by offering a broader set of leading financial products and services," said Diane Morais, CEO and president of the Ally Bank subsidiary. "We are excited to add online brokerage and wealth management to the product portfolio, as well as offer additional savings products to TradeKing clients. The combination of segment-leading direct banking and innovative investment services will be a powerful offering."
The online brokerage and wealth management services will be offered under the Ally brand when the company launches a fully integrated consumer platform, which is expected early next year.
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading U.S. financial services company. Ally's automotive services business offers a full spectrum of financial products and services, including new and used vehicle inventory and consumer financing, leasing, vehicle service contracts, commercial loans and vehicle remarketing services, as well as a variety of insurance offerings, including inventory insurance, insurance consultative services for dealers and other ancillary products. Ally Bank, the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Corporate Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $156.5 billion in assets as of March 31, 2016, Ally operates as a financial holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.