U.S. Bank expanded its partnership with broker-dealer and financial advisor Edward Jones.
The collaboration will allow the firm’s advisors to offer clients deposit and credit card products from the bank starting in late 2025, according to a Wednesday (Aug. 21) press release.
“U.S. Bank and Edward Jones share a mission to improve the financial lives of our clients,” said Arijit Roy, head of consumer and business banking products at U.S. Bank, in the release. “Working together, we look forward to helping more clients achieve their financial goals with simple and easy-to-use banking solutions.”
The companies have had a card-issuing relationship since 20212 through U.S. Bank’s Elan division, according to the release. The expanded partnership will feature new co-branded Edward Jones and U.S. Bank credit card products with more rewards for consumer and small business clients.
The expanded partnership is part of the bank’s strategy to expand its geographic reach, the release said. In 2020 U.S. Bank teamed with State Farm to assume the insurance provider’s deposit and credit card account products, a relationship that now includes business 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 general use cards by a ratio of more than 2-to-1.
The study found that the average U.S. consumer has nearly three cards in their possession, with 77% saying they have some form of credit or store card. However, the type of card consumers prefer changes across income brackets and age groups.
“[I]ncome plays the most significant role in determining who carries what,” PYMNTS wrote. “Thirty-eight percent of consumers earning more than $100,000 a year have a co-branded credit card, and 34% have a co-branded store card, compared to just 14% and 17%, respectively, for those annually earning less than $50,000. Approximately 30% of those earning between $50,000 and $100,000 own co-branded and store cards.”
General-purpose credit cards tend to be the go-to option for people who hold both general-purpose and co-branded cards, the report said. This indicates consumers may believe more benefits come from using general-purpose credit cards, underlining an opportunity that co-branded and store card providers can address.