Discover Financial Services is buying about $1.1 billion in deposits from the retail banking arm of insurer Allstate Corp., the Riverwoods, Ill., company said Tuesday.
Discover did not release the financial terms of the deal, which it said was not material.
In a press release, Discover said as part of a "multi-year distribution and marketing agreement" it would provide banking products and services to Allstate customers. Allstate does not plan to offer banking products after the transaction closes, Discover said.
Under the agreement, Allstate's affiliates and agents will offer personal savings and money market accounts, certificates of deposit and individual retirement account CDs to customers through Discover, whose Discover Bank subsidiary also offers credit card loans, student and personal loans, as well as CDs, savings and other deposit accounts.
"Affinity relationships with leading organizations have provided us with an effective platform for offering Discover Bank's products to an expanded customer base," Carlos Minetti, the president of consumer banking and operations for Discover, said in the release.
