"For over 120 years, Thrivent has provided purpose-based advice and now we’re expanding in banking to grow and serve even more people," Thrivent CEO Terry Rasmussen said in a statement. The bank "will help us build relationships with younger clients earlier," she said.

The company, which has Lutheran roots, currently serves 2.4 million clients through thousands of financial advisors and manages more than $193 billion in assets.

"There’s been this very notable upswell out there for more purpose-driven experiences," Brian Milton, CEO of Thrivent Bank, told Reuters in an interview. "There are 20 million Americans out there who are shopping for a bank account... we know they’re younger, we know they’re diverse, we know they’re looking for transparency and fairness.”

The new bank is one of few to have gained approval to operate from the Federal Deposit Insurance Corporation under the Biden administration. It secured a rare charter from the government to become an industrial loan company, the first since 2020.

The digital bank will take on a group of about 50,000 members from Thrivent's existing credit union, which will be merged into the bank. It already houses about $700 million in deposits and will continue to offer loan products, such as mortgages, to retail clients.