State Farm's partnership with U.S. Bank has significant implications for customers. State Farm is investing $500 million in U.S. Bank to expand its financial services offerings.
This investment will allow State Farm to offer more financial products to its customers, including banking services. State Farm customers will be able to access these services through the State Farm Bank mobile app.
The partnership aims to provide customers with a one-stop-shop for their financial needs, making it easier for them to manage their finances in one place.
Related reading: Bhp Billiton Stock Quote
State Farm's Banking Decision
State Farm, one of the nation's major insurance companies, started its bank in 1999.
The bank offered deposit, checking, and credit card services marketed through its network of nearly 19,000 agents.
State Farm's exit from banking operations is expected to be completed in April.
U.S. Bank will assume State Farm Bank's existing deposit and credit card accounts as part of the transition.
State Farm Bank credit cards are being converted into new U.S. Bank credit cards.
Checking, savings, certificate of deposit, and money market accounts are also being converted into U.S. Bank accounts.
HSA Bank acquired all of State Farm Bank's approximately 24,000 health savings accounts, including an estimated $140 million in deposits.
The company kept customers updated throughout the process of transitioning their accounts.
Consider reading: Usbank Smartly Savings
Dive Insight:
State Farm's banking operations were launched in 1999 as State Farm Financial Services, FSB, a subsidiary of State Farm Mutual Automobile Insurance Company. This marked the beginning of the company's foray into the banking industry.
The bank operates entirely online, with no physical branch offices, and offers a range of services including checking and savings accounts, certificates of deposit, and money market accounts. State Farm Bank customers can access these services online or by phone.
State Farm Bank also offers home mortgage lending, providing customers with an additional financial product option. This move is part of the company's strategy to expand its services and meet the evolving needs of its customers.
The strategic alliance between State Farm and U.S. Bank is set to bring significant benefits to State Farm customers. U.S. Bank will assume State Farm Bank's deposit and credit card accounts, and later provide State Farm customers with access to vehicle loans and business banking products.
State Farm's agents will be able to offer U.S. Bank deposit products and co-branded credit cards to their insurance customers. This partnership will enable State Farm customers to manage their banking needs more conveniently.
A different take: Class B Shares Private Company
Frequently Asked Questions
What forms of payment does State Farm accept?
State Farm accepts cash, check, credit card, debit card, and money order as forms of payment. Visit your State Farm agent to learn more about payment options and make a payment.
Sources
- https://www.statefarm.com/finances/banking
- https://www.atmmarketplace.com/news/state-farm-exiting-from-banking-us-bank-to-take-accounts/
- https://www.startribune.com/u-s-bank-will-take-over-state-farm-s-key-banking-services/568527992
- https://www.bankingdive.com/news/us-bank-state-farm-banking-operations-take-over/573620/
- https://www.insurancejournal.com/news/national/2020/03/10/560761.htm
Featured Images: pexels.com
