CIT Bank

CIT Bank

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More info of CIT Bank

The transformation of traditional banking has become a necessary process in the face of technological advances, increasing mobility and the demands of the generations of the digital era.

Many institutions have had to adapt to this new landscape in order to compete. Thus we find CIT Bank, a young company supported by a century-old legacy.

How did CIT Bank come about?

Founded as a lending company in Salt Lake City (UT) in 2000, CIT Bank operates as a subsidiary of CIT Group, a subsidiary of First Citizens BancShares, which acquired the company in 2022.

It is considered one of the largest banks in the United States in terms of assets and is currently headquartered in New York.

Although initially this branch of the CIT financial group was conceived as a traditional bank, today it is one of the most recognized online banking platforms. Its launch in 2011 was aimed at diversifying the sources of financing for the consortium and at the same time offering more competitive services to individuals and organizations.

The idea behind this technological overhaul also allowed this brand to transfer its corporate finance activities related to middle market and small business lending.

Initially they only offered various certificate of deposit offerings, but by 2012 you could access a savings account, which fueled the growth of this subsidiary.

CIT Bank NA Services

Much of CIT Bank's fame is due to their catalog of banking products, which is distinguished by having a smaller offering than other entities. They have 3 main categories:

• Savings. With an APY that can reach 4.05% and an opening amount of just $100, they are a very attractive resource for those looking to get a good return on their savings.
• CDs. Time deposits of $1,000 minimum and APYs as high as 4.75%. You can also opt for Jumbo, starting with $100,000 and APYs up to 0.50%.
• Mortgages. They are known for their personalized attention, simple procedures, promotions and terms from 10 to 30 years to pay.

CIT Group History

We cannot ignore the beginnings of the financial group that gave life to CIT Bank, not only because of its long history, but also because of its resilience. Initially known as the Commercial Credit and Trust Company, the company was founded by Henry Ittleson in 1908 in St. Louis, MO.

From there, it would move to New York in 1925, where it would assume the name CIT (Commercial Investment Trust) and was dedicated to financing ventures and small producers.

During World War I, this entity was dedicated to financing the construction of submarines, automobiles and even radios, through an agreement with Thomas Edison Inc. In the 1920s, the firm prospered more due to the increase in consumption.

In 1924 it joined the New York Stock Exchange, in 1928 it entered the factoring field and the following year it expanded its operations to Europe.

CIT's development after World War II

In the decades that followed the conflict, CIT underwent a series of transformations and management changes.

• In 1957 they moved to a new building on Madison Ave. in Manhattan.
• Due to the tension caused by the Vietnam War, the 1960s meant changes in the business model.
• During 1979, the company had to sell its bank, the National Bank of North America, and the following year it would be bought by RCA.
• In 1983 they had to move to Livingston (NJ) and in 1984, the company was sold to Manufacturers Hannover Trust, which in turn ceded 60% of its shares to DaI-Ichi Kaygo Bank of Japan.
• Despite announcing a profit of $611.6 million in 2000, the company was sold to Tyco (2001) and renamed Tyco Capital. This purchase would barely last 1 year.
• Due to the 2008 crises, the company had to become a financial group in order to receive help through TARP (Troubled Asset Relief Program) funds.
• Although in July 2009 it received a $3 billion bailout through bondholders, in November it would declare bankruptcy.
• Starting in 2010, it would begin its plan to reorganize, pay debts, issue shares and simplify the company to become a relevant company again.
• In 2022, First Citizens Bank completed the acquisition of CIT Bank, converting the brand's branches.

CIT Bank is one of the financial institutions whose products you can find analyzed in Busconómico along with others with very interesting products.