Synchrony to buy Ally’s POS lending unit

Synchrony to buy Ally’s POS lending unit

Synchrony Financial, a leading consumer financial services company, has announced its plans to acquire Ally Financial’s point-of-sale (POS) lending unit in a strategic move to expand its reach and offerings in the retail finance market.

Ally Financial, a leading digital financial services company, decided to divest its POS lending unit as part of its long-term strategy to focus on its core auto finance and direct banking businesses. The company aims to enhance its position as a provider of digital financial solutions, enabling customers to access innovative and mobile banking services.

The acquisition of Ally’s POS lending unit aligns with Synchrony’s growth strategy, as it continues to identify opportunities to leverage its expertise in consumer financing across various industries.

“This acquisition reflects Synchrony’s commitment to building scale in attractive, high-growth sectors and will allow us to further strengthen our position as a leader in consumer financing,” said Brian Doubles, President, and Chief Executive Officer of Synchrony.

The POS lending unit provides financing options to customers at the point of purchase, offering them quick and convenient access to credit. Synchrony plans to integrate Ally’s lending technology and capabilities into its own suite of payment solutions, enhancing its ability to serve both its partner retailers and consumers.

As the retail industry continues to evolve, with an increasing focus on digital solutions and seamless shopping experiences, Synchrony aims to stay ahead of the curve by delivering innovative financing options that meet changing customer needs.

The transaction is expected to close in the fourth quarter of this year, pending regulatory approval and customary closing conditions. Upon completion, Synchrony will take over Ally’s existing merchant relationships, further expanding its network and market presence.

Both Synchrony and Ally Financial expressed their commitment to ensure a smooth transition for customers and merchants by working closely together throughout the integration process.

Source: Example News