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While the interest-rate environment remains low, the consumer financial services sector is witnessing a solid recovery thanks to increasing financial transactions and capital market activities. Despite high inflation, spending on services and discretionary items has increased significantly, increasing the use of online payment methods amid the hybrid lifestyle. Moreover, the growing technological innovation and rapid adoption of digital services should enhance the consumer financial services market in the upcoming months. According to a Research and Markets report, the global consumer finance market is expected to grow at a CAGR of 5% by 2026. Therefore, both SYF and ALLY should benefit.
ALLY has gained 48.6% over the past year, while SYF has returned 40%. However, SYF’s 30.5% gains year-to-date are higher than ALLY’s 29.9% returns. Moreover, SYF is the clear winner with 12.9% gains versus ALLY’s 7.2% returns in terms of the past nine months’ performance.