The USAA announced this week that it was ending its trust services business, a move that will cost 26 San Antonio employees their jobs.

The San Antonio financial, insurance and banking services company informed the Texas Workforce Commission in a letter that the layoffs will begin in May and continue until early 2023.

Employees work in the USAA Federal Savings Bank building at 10750 McDermott Freeway. Two other employees, including one in Phoenix, will also be laid off. Displaced workers could find other roles at the USAA, spokesman Matt Hartwig said.

The USAA said in a statement that ending the trust services business was part of its strategy “to simplify our business and focus on core insurance and banking products and services. “.

As part of the announcement, the USAA signed an agreement with Charles Schwab Corp. to offer “as many members as possible” the possibility of transferring their trust service accounts to Schwab.

USAA members who choose not to go with Schwab will have time to find another supplier or trustee, the USAA said on its website.

The Schwab deal is unrelated to last summer’s announcement that USAA would sell its investment management business, including brokerage and managed portfolio accounts, to Schwab for $ 1.8 billion.

Schwab’s acquisition of the assets of USAA Investment Management Co. includes more than one million brokerage accounts and managed portfolios with approximately $ 90 billion in client assets. The deal is expected to close by mid-year, pending regulatory approvals.

The USAA said it has fewer than 2,000 accounts in its trust services business, but declined to disclose the total amount of assets. It will begin the transition of these accounts in mid-2020. Transitioning all accounts can take up to three years.

A trust is an arrangement that allows a trustee or a third party to hold assets for the beneficiaries.

USAA has made several changes to focus on its “core” business.

In July, it completed the sale of its asset management business to Victory Capital Holdings in a deal valued at $ 850 million. The transaction included the portfolio of 47 mutual funds and six exchange-traded funds from the USAA. Victory moved its headquarters to San Antonio from Ohio.

Last month, the USAA announced it would end its car buying service and end its relationship with TrueCar Inc. effective October 1. TrueCar, based in Santa Monica, Calif., Maintained a website for the USAA to help its members in the car. purchasing process.

USAA also saw a change at the helm, with Wayne Peacock taking over as CEO on February 1 following the retirement of Stuart Parker. Peacock had been president of the USAA P&C insurance group.

Approximately 19,000 of the 35,000 USAA employees are based in San Antonio, serving approximately 13 million members, including current and former members of the military and their families.

Patrick Danner is a San Antonio-based writer who covers banking and civil courts. Read it on our free site, mySA.com, and on our subscriber site, ExpressNews.com. | [email protected] | Twitter: @AlamoPD



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