Edward Jones Receives Approval to Open Industrial Bank
The financial advisory firm, Edward Jones, has gained state and federal consent to establish an industrial bank. This approval follows a long-standing application period started six years ago and signifies a significant milestone for the company, which first applied for an industrial loan charter in 2020. The bank’s launch is set to occur in early 2027.
The St. Louis-based company received conditional approval from both the Federal Deposit Insurance Corp. (FDIC) and the Utah Department of Financial Institutions. This makes Edward Jones the third company to secure an industrial loan charter this year and the third to win approval since the return of the Trump administration in January 2025.
Notably, Edward Jones isn’t the only firm to express interest in establishing an industrial bank. Other companies, including PayPal and Affirm, have pending applications for industrial loan charters at the FDIC. Last month, automotive giants General Motors and Ford Motor Company also received approvals to open their industrial banks.
Edward Jones Bank’s Offerings and Leadership
Edward Jones Bank plans to accept deposits and offer certificates of deposits, a move that will enhance the company’s existing reserve line of credit portfolio. This expansion will see the portfolio grow from its current presence in 47 states and Washington, D.C., to all 50 states.
David Chubak, head of wealth management and field management at Edward Jones, noted that offering banking services alongside the firm’s existing advisory capabilities would help meet clients’ financial needs more holistically. “With the approval of our bank application, we can now deliver even better on what our clients are asking for,” Chubak said.
The Salt Lake City-based bank will be headed by Andrea Moss, the former CEO of Nelnet Bank. Moss left Nelnet in 2025 and will now use her experience to guide Edward Jones Bank.
Partnership with U.S. Bank
In addition to its banking endeavors, Edward Jones had previously formed a partnership with the Minneapolis-based U.S. Bank in August 2024. Through this alliance, Edward Jones financial advisors offer co-branded U.S. Bank deposit and credit card products to the firm’s nine million-plus clients.
Controversy Surrounding Industrial Loan Charters
Industrial loan charters have sparked a fair share of debate. Despite being regulated and insured at the federal level by the FDIC, they are exempt from the Bank Holding Company Act if they do not offer demand deposit accounts. This has led to traditional banks expressing wariness towards these entities.
In fact, last fall, Senate Banking Committee ranking member Elizabeth Warren, D-Mass., and Rep. Andy Kim, D-N.J., called on the FDIC to halt industrial loan company charter approvals until Congress passes a law that defines such entities as banks under the Bank Holding Company Act. Despite these concerns, the FDIC’s approval of Edward Jones Bank was met with applause by the National Association of Industrial Bankers, citing the potential for expanded access to banking services in underserved areas.
As Edward Jones prepares to launch its industrial bank, the approval signifies a significant step forward in its quest to offer more traditional banking services, thereby meeting the changing needs of its clients. The approval also adds to the growing trend of companies seeking to establish industrial banks, a trend that is likely to continue in the coming years.
Source: Here
