Ally Financial Inc. (ALLY)

Ally finances car purchases and takes deposits online — a bank without branches.

The company grew out of a carmaker's finance arm and kept its dealer relationships: the loan is arranged in the showroom at the moment of purchase. That gives a steady flow of originations without the cost of acquiring a borrower.

It is all funded by deposits gathered online: without branches costs are lower, but the depositor is also less attached — they keep money where the rate is higher and leave quickly. The key question is auto loan quality: in a downturn delinquencies rise while the value of used cars serving as collateral falls at the same time. The company cut side lines — mortgages and credit cards — to concentrate on car finance and deposits, where it has a genuine advantage. A separate line is insurance sold through the same dealers. A dividend is paid.