The personal lines insurer Allstate Corp is no longer involved in the banking business as its deposits amounting to $1.1 billion was purchased by Discover Bank, one of the divisions of Discover Financial Services. Discover Bank then will be in charge of providing banking products and services to the customers of Allstate, as well as handling the loans of the said company’s agents.
Allstate claims that the transaction will be closed by the middle of the year after it receives approval. The company further states that this deal was made so that it can focus on the main products that they are offering. Matthew Winter, Allstate’s CEO said that they are now focusing on their investment, insurance and retirement products.
The deal does not affect the FDIC-insured deposits that customers have made through Allstate Bank since they can still access that through Discover. The agents of Allstate can still offer banking products such as money market, savings, retirement accounts and other similar products through Discover, and the insurance policies will not be affected with this agreement.
The products that were offered by Allstate Bank will still be offered by Discover, along with some new ones that the bank will introduce. As to the loans that are offered by Allstate Financial, these will be processed through the Allstate Finance Co. by the various agencies of Allstate.
Allstate Bank started out in 2001, handling accounts on deposits that are FDIC insured, savings, checking, ATM, money market accounts, debit cards and mortgages. Meanwhile, Discover Bank offers personal and student loans, money market, online savings account, deposit certificates and the Discover card.