A new partnership with Citi will allow Edward Jones to add checking and savings accounts to its portfolio of services, as the brokerage firm looks to deepen its relationship with clients.
Edward Jones on Wednesday said it plans to offer the accounts for clients across the U.S. next year. The firm also plans to add securities-based lending and may look to add other retail banking products and services, it said.
“We are excited to bring our clients enhanced products, services and experiences through this industry-leading partnership with Citi," Lena Haas, head of wealth management advice and solutions at Edward Jones, said in a statement. "This new offering will further strengthen our nearly 19,000 financial advisors' ability to help our clients achieve their financial goals through more holistic advice, planning and solutions."
Edward Jones has tried to enter the banking space before, albeit more directly.
The company was one of a host of nonbanks to apply for an industrial loan charter license in 2020, after the Federal Deposit Insurance Corp. approved applications from payments firm Square (now Block) and student loan servicer Nelnet that year.
Edward Jones, however, withdrew its application with federal and Utah regulators in October, citing “the current environment” and “recent conversations” with the FDIC as its reasons for abandoning its bid for an ILC charter.
The charters, which exempt ILCs from the definition of a “bank” under the Bank Holding Act, have generated controversy in the banking space in recent years.
Opponents, such as bank trade groups and some lawmakers and regulators, argue the charter creates a loophole that allows ILCs to sidestep Federal Reserve oversight.
Edward Jones’ new partnership with Citi, however, allows it to offer banking services without wading into the controversial space.
Integrating banking capabilities into the firm’s investment services will give the company’s advisors a more holistic view of clients’ finances, allowing advisors to make more personalized recommendations, the company said.
“We are pleased to partner with Edward Jones to offer an innovative and client-focused suite of banking services to cover their clients' short- and long-term goals," Eduardo Martinez Campos, head of Citi Wealth Services and Strategic Investments for Citi Global Wealth, said in a statement. "When personalized advice and wealth management is complemented with integrated banking services, clients benefit from a complete set of financial solutions, allowing for more holistic planning opportunities and growth."
As part of the partnership, Citi said it will leverage Citi Alliance, the premium banking and lending service it launched for clients of broker dealers and custodians in early 2022.
