US Bank expanded its partnership with broker-dealer and financial advisor Edward Jones.
The collaboration will enable the company’s advisors to offer the bank’s deposit and credit card products to their clients from the end of 2025, according to a statement published on Wednesday (21 August). Press release.
“US Bank and Edward Jones share a mission to improve the financial lives of our customers,” said Arijit RoyHead of Personal and Commercial Banking Products at US Bank, in the press release. “We look forward to working together to help more customers achieve their financial goals with simple and easy-to-use banking solutions.”
The two companies have been collaborating on card issuance since 20212 through US Bank’s Elan division, the statement said. The expanded partnership will include new co-branded credit card products from Edward Jones and US Bank with more rewards for retail and small business customers.
The expanded partnership is part of the bank’s strategy to expand its geographic reachsays the press release. In 2020, US Bank entered into a State Farm Acquisition of the insurer’s deposit and credit card account productsa relationship that now includes commercial banking, deposit and credit card products in 48 states.
The PYMNTS intelligence report “The role of strategic partnerships in consumer credit cards“ examined the popularity of co-branded credit cards, which are used by 27% of U.S. consumers but lag behind commonly used cards by more than 2:1.
The study found that the average U.S. consumer owns nearly three credit cards in their possessionwith 77% saying they have some form of credit or debit card. However, the type of card consumers prefer varies by income bracket and age group.
“Income plays the most important role in determining who carries what,” wrote PYMNTS. “38 percent of consumers who earn more than $100,000 a year have a co-branded Credit cardand 34% have a co-branded loyalty card, compared to just 14% and 17%, respectively, for those earning less than $50,000 annually. About 30% of those earning between $50,000 and $100,000 have co-branded and loyalty cards.”
General purposes Credit cards are usually the first choice for people who have both general-purpose and co-branded cardssays the report. This suggests that consumers may believe there are more benefits to using general-purpose credit cards and highlights an opportunity that co-branded and loyalty card providers can capitalize on.
