One West Bank CIT Bank represents a significant chapter in American banking history. From OneWest’s roots in the aftermath of the 2008 financial crisis to its acquisition by CIT Group, the combined entity has undergone a complex transformation. This exploration delves into the history of both institutions, the merger’s impact, and CIT Bank’s current position in the financial landscape.
We’ll examine its services, customer experience, market standing, and technological innovations, offering a comprehensive overview of this evolving financial institution.
Understanding the trajectory of OneWest and CIT provides valuable insights into the dynamics of the modern banking industry. This journey involves examining the institutions’ individual histories, the strategic rationale behind the merger, and the resulting effects on customers. We’ll also analyze CIT Bank’s current offerings, competitive landscape, and its efforts to adapt to the ever-changing demands of the financial world.
Understanding “OneWest Bank” and “CIT Bank” Individually
OneWest Bank and CIT Bank, now unified under the CIT Bank brand, have distinct histories that converged through a significant merger. Understanding their individual paths provides context for the current state of the institution.
OneWest Bank’s History
OneWest Bank emerged from the remnants of IndyMac Bank, which failed during the 2008 financial crisis. IMB HoldCo LLC, a consortium of investors including Paulson & Co., acquired the assets of IndyMac and rebranded it as OneWest Bank in 2009. OneWest focused on residential lending and banking services, primarily in Southern California.
CIT Bank’s History
CIT Group, the parent company of CIT Bank, has a much longer history dating back to 1908. Originally founded as Commercial Investment Trust, CIT Group has traditionally focused on commercial lending and leasing services to small and middle-market businesses. Over the years, CIT expanded its offerings to include various financial products, including factoring, railcar leasing, and vendor financing.
CIT Bank, the retail banking arm of CIT Group, offered deposit accounts and other consumer banking services.
Timeline of Significant Events
| Year | Event |
|---|---|
| 1908 | CIT Group founded |
| 2008 | IndyMac Bank fails |
| 2009 | OneWest Bank formed from IndyMac assets |
| 2015 | CIT Group acquires OneWest Bank |
The Merger of OneWest Bank and CIT Group
The merger of OneWest Bank and CIT Group in 2015 significantly reshaped the financial landscape. This merger brought together a commercial lending giant with a regional retail bank, creating a more diversified financial institution.
Circumstances Surrounding the Merger
CIT Group sought to expand its retail banking presence and diversify its business model. Acquiring OneWest Bank provided CIT Group with a substantial branch network and a customer base in the attractive Southern California market. For OneWest, the merger offered the backing and resources of a larger, more established financial institution.
Impact of the Merger
The merger led to the rebranding of OneWest Bank branches as CIT Bank locations. Customers of both banks gained access to a wider range of financial products and services. Some services offered by OneWest Bank were discontinued after the merger, while others were integrated into CIT Bank’s existing offerings.
Merger Date and Key Players
The merger officially closed on August 3, 2015. Key players involved in the merger included John A. Thain, then CEO of CIT Group, and Joseph M. Otting, CEO of OneWest Bank.
Services Offered by CIT Bank (formerly OneWest)
CIT Bank offers a comprehensive suite of financial products and services catering to both consumers and businesses.
Current Service Offerings
| Deposit Accounts | Loan Options | Other Financial Products | Business Services |
|---|---|---|---|
| Savings Accounts | Mortgages | Money Market Accounts | Commercial Lending |
| Checking Accounts | Home Equity Loans | Certificates of Deposit (CDs) | Equipment Financing |
| High-Yield Savings Accounts | Personal Loans | IRA Accounts | Treasury Management |
| Money Market Accounts | Auto Loans |
Discontinued Services
- Certain specialized mortgage products offered exclusively by OneWest
Comparison of Services
CIT Bank retains the core banking services previously offered by OneWest, such as deposit accounts and mortgages, while expanding the available options with CIT Group’s commercial and business services.
Customer Experience with CIT Bank
Customer experiences with CIT Bank vary, reflecting the diverse range of services and individual customer needs.
Customer Feedback Examples
Positive feedback often highlights CIT Bank’s competitive interest rates on savings accounts and the convenience of its online banking platform. Negative feedback sometimes focuses on longer wait times for customer support or difficulties navigating the loan application process.
Customer Reviews by Service
Online banking reviews frequently mention the user-friendly interface and mobile app functionality. Customer support reviews often note the helpfulness of representatives, while some mention longer wait times during peak hours. Loan processing reviews vary, with some customers praising the efficiency of the process while others express frustration with delays or documentation requirements.
Customer Satisfaction Ratings
Gathering comprehensive data on customer satisfaction ratings before and after the merger presents challenges. However, anecdotal evidence suggests a relatively stable level of customer satisfaction, with ongoing efforts by CIT Bank to improve customer service and address customer concerns.
CIT Bank’s Market Position
CIT Bank operates in a competitive financial landscape, vying for customers with both traditional banks and online financial institutions.
Main Competitors
CIT Bank’s main competitors include major national banks like Bank of America and Wells Fargo, as well as online banks such as Ally Bank and Marcus by Goldman Sachs.
Market Share and Financial Performance
CIT Bank holds a relatively small market share compared to larger national banks. However, it has maintained a stable financial performance, leveraging its diverse range of services and focusing on specific market segments.
Target Audience and Marketing Strategies
CIT Bank targets both consumers and businesses, with a particular focus on small and middle-market companies. Its marketing strategies emphasize its competitive rates, online convenience, and specialized lending products.
CIT Bank’s Branch Network and Online Presence
CIT Bank combines a physical branch network with a robust online and mobile banking platform.
Branch Network
CIT Bank’s branch network is primarily concentrated in Southern California, a legacy of its OneWest Bank acquisition. This regional focus allows for personalized service in its core market.
Online Banking Platform
CIT Bank’s online banking platform provides customers with 24/7 access to their accounts, bill pay services, funds transfers, and other essential banking functions. The platform is designed for user-friendliness and accessibility.
Mobile Banking App
CIT Bank’s mobile banking app extends the functionality of the online platform to mobile devices. Customers can manage their accounts, deposit checks, and make payments on the go. The app is available for both iOS and Android devices.
Financial Health and Stability of CIT Bank
CIT Bank demonstrates a commitment to financial stability and regulatory compliance.
Financial Performance Indicators
CIT Bank maintains a healthy asset size and profitability, reflecting its diversified business model and effective risk management practices. Specific financial data can be found in publicly available financial reports.
Recent News and Developments
Recent news regarding CIT Bank often focuses on its strategic initiatives, such as expanding its digital banking capabilities and enhancing its customer service offerings.
Regulatory Compliance and Legal Issues
CIT Bank adheres to all relevant banking regulations and maintains a strong compliance record. Information on any past or ongoing legal issues can be found through public records and regulatory filings.
Innovative Features and Technology at CIT Bank
CIT Bank embraces technological innovation to enhance the customer banking experience.
Implemented Innovations
CIT Bank has implemented various innovative features, such as streamlined online account opening processes and enhanced mobile banking functionalities. These initiatives aim to provide customers with greater convenience and control over their finances.
Benefits for Customers
These innovations benefit customers by simplifying banking tasks, providing 24/7 access to account information, and offering personalized financial management tools.
Future Plans and Initiatives
CIT Bank continually explores new technologies to improve its services. While specific future plans are subject to change, the bank’s commitment to innovation suggests ongoing enhancements to its digital banking platform and customer-facing technologies.