State Farm Bank announced that it would be winding down operations, with State Farm changing strategy to exit the banking industry.
As part of the divestment, State Farm announced a strategic alliance with U.S. Bank, with the bank assuming State Farm’s deposit and credit-card accounts, and State Farm agents getting the chance to market U.S. Bank deposit products and co-branded credit cards.
In addition, the companies said they would work to bring vehicle loans and business banking products to State Farm customers.
“State Farm has been committed to helping people for nearly 98 years. U.S. Bank is an outstanding institution that shares our commitment to strong customer relationships,” State Farm President and CEO Michael Tipsord said in a press release.
The transition of accounts is scheduled to begin after the deal closes later this year, the companies stated.
“We are excited about this new alliance with State Farm because it will help us reach more customers in the moments that matter most,” U.S. Bank Chairman, President and CEO Andy Cecere said. “It is a terrific opportunity to combine U.S. Bank products, services and digital capabilities with State Farm’s coast-to-coast network of agents. This relationship will provide State Farm customers with enhanced product options while expanding U.S. Bank's reach into new and existing markets.”
State Farm has nearly 19,000 agents who serve 84 million policies and accounts, and the company said it is the largest provider of auto and home insurance in the country.