U.S. Bank Expands Reach with Strategic Alliance with State Farm
State Farm, the largest property and casualty insurance provider in the country, and U.S. Bank, the country’s fifth largest commercial bank, have announced a strategic alliance. U.S. Bank will assume State Farm Bank’s existing deposit and credit card accounts and State Farm agents will offer U.S. Bank deposit products and co-branded credit cards to State Farm customers. This alliance will benefit State Farm customers, offering them new, easy ways to manage their banking needs and it will expand U.S. Bank’s footprint almost nationwide.
The alliance is part of a broader strategy by State Farm to exit banking operations. The transition of deposit and credit card accounts is scheduled to begin after closing, subject to regulatory approval, later this year and into 2021. Current State Farm Bank customers do not need to take any action. State Farm and its affiliates are the largest providers of auto and home insurance in the United States with nearly 19,000 agents serving approximately 84 million policies and accounts.
U.S. Bank is also in the process of launching two new credit cards.