Charles Schwab (NYSE: SCHW) will automatically provide wealthy clients with access to financial advisors and personalized services that will help the company attract profitable and fast-growing clients. We expect to strengthen our business in the segment.
Jonathan Craig, Head of Investor Services at Charles Schwab, said the changes, which include new perks and investment capabilities, “will help the wealthy people we serve who are increasingly attracted to our breadth of services.” It reflects our commitment to providing meaningful differentiation to our growing customer base.” and outstanding value. ”
Schwab is best known for its discount brokerage business, but it also offers its clients wealth management services, including access to financial advisors. The high net worth and ultra high net worth customer segment is also one of Schwab’s fastest growing segments. Together, they account for more than two-thirds of the company’s total retail client assets today, according to the company.
Schwab’s $1 million+ customers have grown at a rate of more than 10% annually over the past five years, and its $10 million+ customers have grown at a nearly 20% annual rate, according to the company.
Individual clients with more than $1 million in Schwab assets will be automatically enrolled in the Schwab Private Client Service, while clients with more than $10 million in Schwab Private Wealth Service will be enrolled in the Schwab Private Wealth Service, the company announced Monday. bottom.
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Privilege. Schwab said clients now have access to a dedicated advisor at no additional cost. Other perks they receive include special deals at Schwab’s banks, such as discounts on mortgage interest rates. Expanding financing options. Access wealth management professionals with expertise in tax, trust and estate planning, stock compensation, retirement planning, trading, education and family support.
Schwab also said clients will now have access to senior bankers at the firm’s banks, who can consult with investors on their banking needs and design personalized borrowing strategies.
Wealth management firms are increasingly leaning towards offering banking and lending products to their clients as a means of meeting a wide range of client needs and further expanding their business.
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Charles Schwab is one of the largest asset managers in the United States. The Westlake, Texas-based company had 34 million brokerage accounts, 2.4 million corporate retirement plan participants and $7.65 trillion in client assets as of May 31.
Please email Andrew Welsch at andrew.welsch@barrons.com.
