Jones Financial Cos. LLP of St. Louis has submitted an application to the Federal Deposit Insurance Corp. (FDIC) and Utah Department of Financial Institutions to establish the Edward Jones Bank, a Utah-chartered industrial bank. The bank would be insured by the FDIC and subject to federal and state regulatory oversight. If approved, the bank would help Edward Jones serve clients’ needs for saving, spending and borrowing, the company said.
“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,” said 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. 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.”
The bank application process is expected to take an extended period of time. 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, Dardano said.
“We’re hearing from our clients that they are looking for a centralized source for saving, spending and borrowing,” said Matt Burkemper, Edward Jones' principal responsible for banking. “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.“