CIT Bank’s acquisition of OneWest Bank marked a significant shift in the financial landscape. This exploration delves into the histories of both institutions, their product offerings, customer experiences, and the implications of their merger. Understanding the nuances of each bank, pre and post-acquisition, offers valuable insights for customers and industry observers alike.
From examining the distinct services each bank provided to analyzing the rationale behind the acquisition, this analysis provides a comprehensive overview of CIT Bank and OneWest Bank. We’ll explore customer journeys, compare financial products, and dissect the impact of the merger on both institutions, offering a detailed perspective on this key financial event.
Understanding CIT Bank
CIT Bank, founded in 1908, has evolved significantly over the years. Key milestones include its initial focus on commercial lending, its expansion into retail banking, and its navigation through various economic cycles. The bank offers a range of financial products and services, including savings accounts, checking accounts, money market accounts, certificates of deposit (CDs), and home loans. CIT Bank primarily targets individuals and families seeking competitive interest rates on deposit accounts and convenient online banking services.
The bank has built a reputation for its online banking platform and its focus on deposit products. Currently, CIT Bank holds a notable position in the online banking market, known for its competitive rates and digital-first approach.
Understanding OneWest Bank
OneWest Bank emerged from the remnants of IndyMac Bank, which failed during the 2008 financial crisis. IMB Holdco LLC acquired the assets of IndyMac and rebranded it as OneWest Bank in 2009. OneWest focused on residential mortgage lending and servicing, operating primarily in Southern California. Its product offerings included home loans, refinancing options, and deposit accounts. The bank’s target customer base consisted primarily of homeowners and individuals seeking mortgage services.
OneWest Bank developed a reputation for its mortgage lending expertise and its focus on the Southern California market.
Comparing CIT Bank and OneWest Bank
Comparing interest rates on savings accounts between the two banks requires specific historical data, as OneWest Bank no longer operates independently. However, generally, online banks like CIT Bank often offered more competitive interest rates compared to traditional brick-and-mortar banks.Regarding checking account fees, both banks likely had varying fee structures depending on the account type. A comparison would require examining historical fee schedules.OneWest Bank, as a more traditional institution, likely had a branch network and potentially more in-person customer service options.
CIT Bank, primarily operating online, focused on digital banking features and online customer support.
- CIT Bank: Online chat, email, phone support.
- OneWest Bank: Branch access, phone support, potentially online services.
The Acquisition of OneWest Bank by CIT Group
CIT Group acquired OneWest Bank in 2015 for $3.4 billion. This acquisition significantly expanded CIT Group’s presence in the retail banking sector and diversified its product offerings. For OneWest Bank customers, the acquisition meant integration into CIT Bank’s systems and access to a broader range of financial products. CIT Group aimed to leverage OneWest Bank’s mortgage expertise and customer base to strengthen its position in the market.
Following the acquisition, OneWest Bank’s operations were fully integrated into CIT Bank.
Customer Experiences with CIT Bank and OneWest Bank
A hypothetical customer journey for a CIT Bank customer opening a savings account would involve navigating the bank’s website or mobile app, completing an online application, and funding the account electronically.A hypothetical scenario of a OneWest Bank customer applying for a mortgage would likely involve visiting a branch, consulting with a loan officer, submitting an application, and undergoing a financial assessment.
- Potential pain points: Technical issues with online banking platforms, long wait times for customer service.
- Positive experiences: Competitive interest rates, convenient online account access, efficient loan processing.
Customer feedback and reviews would vary depending on individual experiences and specific products used.
Financial Products and Services Comparison
A direct comparison of mortgage products requires historical data from both banks. However, generally, CIT Bank focuses on a select range of mortgage options while OneWest Bank likely offered a broader variety given its focus on mortgage lending. Both institutions provided various lending solutions tailored to their respective target markets. CIT Bank, with its commercial banking heritage, offered a range of commercial banking services.
OneWest Bank likely focused on consumer lending solutions.
Branch Network and Accessibility
CIT Bank primarily operates as an online bank with a limited physical branch network. OneWest Bank, before the acquisition, maintained a branch network primarily in Southern California.A map illustrating the combined branch network after the acquisition would show a concentration of branches in Southern California, reflecting OneWest Bank’s presence, with potentially some additional locations based on CIT Bank’s existing footprint.
The map would use different markers or colors to distinguish between the two banks’ original branch locations.Both institutions offered online and mobile banking services, providing customers with convenient access to their accounts and financial tools.