Empower is not a bank; instead, it operates as a financial services company that offers banking products through strategic partnerships with regulated banking institutions.
Empower's Banking Relationships
While Empower provides a comprehensive suite of financial planning, investment management, and wealth management services, it does not hold a banking charter itself. For the provision of bank deposit products, Empower collaborates with UMB Bank n.a., which is a Member FDIC institution.
This partnership structure means that when you access bank deposit products through Empower, your funds are handled by a fully regulated and FDIC-insured bank.
How Deposit Products Work Through Empower
To participate in Empower's program that includes deposit products, you typically open an account directly with UMB Bank n.a. through the Empower platform. Your funds are then placed into accounts at participating program banks, which may include UMB Bank n.a. itself. This multi-bank approach helps to maximize FDIC insurance coverage beyond the standard limits by spreading deposits across multiple institutions.
This arrangement ensures that your deposits are held securely at institutions that are members of the Federal Deposit Insurance Corporation (FDIC), providing protection for your money up to the per-depositor, per-bank, per-ownership category limits.
Key Aspects of Empower's Banking Model
Understanding Empower's operational model regarding banking services is crucial for its customers.
- Empower's Role: Empower focuses on providing technology-driven financial planning, investment tools, and advisory services. It acts as the interface and aggregator for various financial products.
- Banking Partner: UMB Bank n.a. serves as the primary banking institution responsible for holding and managing the underlying deposit accounts. You can learn more about UMB Bank n.a. on their official website: UMB Bank.
- Deposit Security: All deposit products facilitated through Empower are held at FDIC-insured banks, meaning your eligible deposits are protected by the FDIC. For more information on FDIC insurance, visit the FDIC website.
- Customer Experience: While the backend banking operations are handled by UMB Bank n.a. and other program banks, customers interact primarily with the Empower platform for managing their finances and viewing their deposit accounts. You can explore Empower's offerings on their official site: Empower.
This structured approach allows Empower to focus on its core expertise in financial planning and investment advice, while leveraging the robust and regulated infrastructure of established banks for deposit services.
