Ally Financial divests POS financing business to Synchrony – FinTech Futures.

Connecticut-headquartered financial services firm Synchrony has acquired Ally Lending, the point of sale (POS) financing business of Ally Financial. The acquisition includes $2.2 billion in loan receivables and will allow Synchrony to offer a range of credit and installment loans to Ally Lending’s merchant portfolio. Synchrony plans to include installment loans in its home improvement vertical and integrate Ally Lending’s health portfolio into its health and wellness platform. The CEO of Synchrony sees the acquisition as a growth opportunity and a way to diversify the firm’s merchant base. For Ally Financial, the sale of its POS financing business is part of its strategy to invest resources in growing scale businesses and strengthening relationships with dealer customers and consumers. The financial terms of the deal have not been disclosed.