State Farm and U.S. Bank – a major commercial bank – have announced a strategic alliance, wherein U.S. Bank will assume State Farm Bank’s existing deposit and credit card accounts.
The partnership also allows State Farm agents to introduce U.S. Bank deposit products and co-branded credit cards to State Farm customers.
A release noted that the alliance is part of State Farm’s broader strategy to exit banking operations. Both companies also have plans to eventually offer State Farm customers access to vehicle loans and other business banking products.
The transition of deposit and credit card accounts is set to begin after the partnership deal closes, subject to regulatory approval, later this year. Current customers of State Farm have been advised that they do not need to take any action.
“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,” said State Farm president and CEO Michael Tipsord. “When we combine State Farm’s deep customer relationships with the scale and capabilities of companies like U.S. Bank, we can help significantly more people.”
“We are excited about this new alliance with State Farm because it will help us reach more customers in the moments that matter most,” added U.S. Bank chairman, president, and CEO Andy Cecere. “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.”