Edward Jones Gets Approval to Launch a Bank
In a major move blurring the lines between wealth management and banking, Edward Jones has received approval from the FDIC and Utah regulators to launch its own bank. The firm aims to integrate banking solutions directly into its client services, simplifying financial lives for its customers.
The journey for Edward Jones to secure a bank charter was a multi-year process. The firm initially filed an application for an industrial loan charter in July 2020 but withdrew it in October 2022 after discussions with the FDIC. They resubmitted the application in April 2025, culminating in the recent conditional approval. The new entity, Edward Jones Bank, will be a Utah-chartered industrial bank, also known as an Industrial Loan Company (ILC). This type of charter allows a non-financial firm to own a bank that can accept FDIC-insured deposits and issue loans, without being subject to the same regulations as a traditional bank holding company. Utah is a popular state for ILCs due to its favorable regulatory environment. The bank's initial focus will be on providing securities-based loans nationwide, which will be funded by sweep deposits from existing Edward Jones clients. The firm also plans to offer certificates of deposit (CDs) and expand its reserve line of credit portfolio to all 50 states. This move complements their existing partnership with U.S. Bank, which offers co-branded checking and credit card products. Leading the new Salt Lake City-based bank will be Andrea Moss, the former CEO of Nelnet Bank, another institution with an industrial loan charter. The FDIC's approval is contingent on several conditions, including that the bank maintains a minimum nine percent tier 1 leverage ratio and that its parent company provides capital and liquidity support. The bank is expected to launch in early 2027.
