Edward Jones, the brokerage firm, has announced a new partnership with Citigroup that will allow its advisors to offer clients checking and savings accounts starting early next year. The move comes after the firm decided not to launch its own bank last year.
The specifics of the new accounts, including pricing and advisor compensation, have not been disclosed at this time. However, Edward Jones has expressed its intention to expand securities-based lending for clients and potentially introduce other banking products and services in the future.
Lena Haas, head of wealth management advice and solutions at Edward Jones, believes that the addition of banking products will enable the firm’s advisors to provide more comprehensive advice to clients. This move is part of a larger transformation at Edward Jones, which recently introduced a teaming option for advisors who were previously only allowed to operate solo practices.
With 18,892 advisors and $1.8 trillion in client assets as of the end of the second quarter, Edward Jones aims to capitalize on the trend of wealth management companies offering banking and lending services to meet a wider range of customer needs. As interest rates have risen, clients have become more concerned about the yield on their cash savings, prompting some firms to offer more attractive rates. In addition, some firms have increased the FDIC insurance coverage on their cash savings accounts in response to the regional banking crisis earlier this year.
Edward Jones’s foray into offering checking and savings accounts demonstrates its commitment to adapting to evolving client demands and providing holistic financial solutions.