Ally Financial Inc. closed on its acquisition of Fair Square Financial, a digital-first credit card company based in downtown Wilmington.
Ally had earlier disclosed the pending deal valued valued at $750 million
“The addition of Fair Square and its credit card offerings will enhance our suite of consumer products and aligns with our long-term strategy to be the leading full-service digital bank,” said Ally CEO Jeffrey J. Brown.
Fair Square is a digital-first credit card company generating strong growth and solid credit results since being founded in 2016 by veterans of the credit card industry.
“Fair Square was built on the premise of providing fair and transparent credit card offerings,” said Fair Square CEO Rob Habgood. “We are excited to continue delivering compelling products with growing momentum as we join the Ally team.”
Habgood is a banking veteran who held positions at Capital One and Bank of America. Prior to its sale, Fair Square attracted investors that included the former CEO of Citi.
The Fair Square team brings 86 employees to Ally, along with about 693,000 cardholders and $816 million in loan balances.
Fair Square offers the Olio card for individuals in the subprime market who may have difficulty in getting a credit card. The company uses analytics and other technology to determine credit-worthiness.
The company has been viewed as a rising star in Delaware’s fintech industry that continues to attract new and existing players.
Ally, based in Detroit, was spun off from automaker GM and includes an online bank, auto finance, and insurance operations.
Ally has positioned itself as a consumer-friendly online bank with no overdraft fees.
See earlier story