Ally Lending, the personal lending arm of Ally Bank, a subsidiary of Ally Financial Inc (NYSE: ALLY), announced its relationship with Eargo (NASDAQ: EAR), a medical device company dedicated to improving the quality of life of people with hearing loss. The agreement is said to expand Ally’s financing offerings in audiology, a market Ally Lending entered more than five years ago, and will help give more people access to Eargo’s hearing aid devices. Ally’s alignment with Eargo “builds upon the company’s legacy and expanding footprint in business-to-business-to-consumer lending.” According to the announcement, Ally Lending experienced 75% YoY loan origination growth in 2020.
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Approximately 48 million Americans have some degree of hearing loss – making hearing care essential for more than one in 10 of our neighbors. The US Food and Drug Administration notes that these individuals typically face an average ticket of $4,600 for a set of hearing aids, making price “a primary reason for delaying a purchase.” Ally Lending hopes to eliminate the cost barrier by giving Eargo customers the option to pay in small, planned amounts over time. The Ally Lending program is said to offer Eargo customers:
- Easy-to-use online consumer application process;
- Simple, quick pre-qualification with no credit impact;
- Low merchant discount fee options with low consumer monthly payments.
“The pandemic has challenged many Americans financially, forcing people to make hard decisions about their spending priorities. Those with pressing healthcare concerns need to find ways to get life-altering care at a price they can afford,” said Hans Zandhuis, head of Ally Lending. “In teaming up with Eargo, we can make it easier for people to purchase a device that improves the safety and quality of their everyday lives.”
Eargo’s value proposition of innovative products with licensed professional support packaged via a direct-to-consumer approach addresses “the major challenges of traditional hearing aid adoption, including social stigma, accessibility, and cost.” Eargo hearing devices are one of “the first and only virtually invisible, rechargeable, and completely-in-canal aids.” They are also FDA regulated and Class I exempt devices for the treatment of hearing loss.
“Our mission is to improve access to the best hearing care possib\le so that people can live better, and one way to do that is through our partnership with Ally Lending,” said Christian Gormsen, CEO of Eargo. “Ally’s program is easy for our customers to access and gives them flexible, low-interest plans — enabling them to purchase the hearing technology they need and with Eargo, the technology they want.”
To learn more about Eargo’s hearing aids and accessories, visit: Eargo.com.
In addition to financing options in healthcare, Ally Lending offers personal loans for home improvement needs, auto maintenance and servicing, and soon, installment payment options for retail purchases. To learn more, visit: allylending.com.
Source: Ally Lending, Eargo