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Allstate Financial Exits Banking Business With Discover Deal

The company will refocus on insurance products following the sale of its deposits.

Northbrook, Ill.-based Allstate Financial has sold substantially all of the deposits of its Allstate Bank subsidiary to Discover Financial Services (Riverwoods, Ill.) as part of a multi-year distribution and marketing agreement the companies announced. Terms of the deal were not disclosed.

Under the terms of the agreement, Discover Bank will assume the Allstate Bank deposit accounts and provide banking products and services to Allstate customers. Allstate Financial does not intend to originate banking products or services after the transaction closes, the company says.

Insurance products are not affected, but Allstate affiliates and agents will offer personal savings and money market accounts, CDs and individual retirement account CDs to their customers through Discover.

"Allstate Financial has refocused on insurance, retirement and investment products. That, combined with the changing regulatory environment, led us to the determination that operating Allstate Bank is no longer core to our long-term strategy," Matthew Winter, president and CEO for Allstate Financial, says in a statement. "This agreement will enable Allstate Financial to deepen its focus on producing differentiated products for our key markets, strengthening relationships with existing customers, and creating profitable growth for Allstate."

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

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