Edward Jones takes second stab at creating its own bank

Several years after its first attempt to launch an industrial bank, Edward Jones is trying again as part of a broader effort to deepen its banking strategy and meet the evolving needs of its 9 million clients.

The firm’s parent, The Jones Financial Companies, has submitted an application to the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions to create Edward Jones Bank.

If approved, the Utah-chartered institution would be FDIC-insured and operate as a wholly owned, indirect subsidiary, based in the Salt Lake City area.

“Edward Jones Bank is an opportunity to simplify our clients' financial lives and reflects our firm’s focus on meeting their evolving needs,” David Chubak, principal and head of branch development and the US business unit, said in a statement revealing the move.

The move builds on Edward Jones’ ongoing efforts to expand its banking footprint. The firm already offers margin lending, a securities-based line of credit, and a range of cash management tools. It also works with US bank on a credit card product, with plans to expand the relationship this year to include a co-branded checking account and enhance its credit card offering.

With the addition of Edward Jones Bank, the firm plans to participate in its existing insured bank deposit program, issue certificates of deposit, and broaden access to its credit lines. These offerings would support the launch of additional co-branded retail banking products slated for later this year.

“Our clients’ financial needs are increasingly complex. An affiliated bank would allow us to better meet those needs in order to achieve clients’ long-term financial goals,” said Alison Carnie, principal and head of the banking business unit.

Andrea Moss, a financial services executive with nearly three decades of banking experience, is expected to serve as president and CEO of the proposed bank. Moss's professional history includes leadership tenures at Nelnet Bank, Comenity Capital Bank, and Zions Bank, according to her LinkedIn profile.

This is not Edward Jones’ first attempt to enter the banking space through a Utah charter. The firm previously filed a similar application in 2020 but withdrew it in 2022. In a filing with the SEC, the firm cited "recent conversations with the Federal Deposit Insurance Corporation" and "the current environment."

With more than 20,000 advisors across North America and a presence in two-thirds of US counties, Edward Jones oversees $2.2 trillion in client assets as of year-end 2024.

Over the past few years, the firm known for its Main Street focus has been making moves to go upmarket, including a push for more CFP professionals within its ranks. More recently in March, it unveiled a new private client offering, Edward Jones Generations, aimed at high-net-worth clients with at least $10 million in investable assets.