Financial services firm Edward Jones is looking to create a bank for its advisors’ clients, its parent firm, Jones Financial Cos., disclosed Thursday.
The firm submitted an application to the Federal Deposit Insurance Corp. and Utah Department of Financial Institutions to establish the Edward Jones Bank, a Utah-chartered industrial bank, it said.
If approved, the bank would “help Edward Jones better serve clients’ needs for saving, spending and borrowing,” the company said in its announcement.
“Since our founding 98 years ago, Edward Jones has been focused on helping individuals achieve their serious, long-term financial goals while understanding their needs and implementing tailored solutions,” according to Ken Cella, Edward Jones principal responsible for the Client Strategies Group.
“An affiliated bank would enable us to broaden our offerings for retail investors, while also supporting our approach to helping Edward Jones branch teams ensure our 7 million clients feel understood, informed, secure and in control,” he explained in a statement.
“Given market conditions, we believe the need for enhancements to our financial services is more important than ever to our clients as they look to reach their financial goals,” he added.
Edward Jones Bank would be insured by the FDIC and subject to federal and state regulatory oversight, the company said.
However, assuming it is approved, the bank won’t be opening its doors in the very near future. After all, “the bank application process is expected to take an extended period of time,” the company said, adding: “If the application is approved, Ray Dardano would serve as the bank’s president and Edward Jones believes the bank’s operations could begin in late 2021, at which time clients could see the firm offer enhanced options for saving, spending and borrowing, including certain securities-based loans.”
The firm has been “hearing from our clients that they are looking for a centralized source for saving, spending and borrowing,” Matt Burkemper, Edward Jones principal responsible for banking, said in the announcement. “With an affiliated bank, we would have the opportunity to enhance and expand our offerings, better enabling Edward Jones financial advisors to help clients meet their comprehensive financial goals.”
— Check out Edward Jones’ Top Exec: How the Firm Is Managing Pandemic, Boosting Diversity on ThinkAdvisor.