“Fire your broker!” How many of us remember those ads of yore that implored brokerage clients to fire their wirehouse broker and move over to Schwab (SCHW)? They are indelibly imprinted on my brain, anyway.
What’s more is that the message as definitely driven the direction of the brokerage business over the past couple decades. Industry studies show that retail brokers are finding it harder and harder to compete against online brokers. So, Schwab was definitely onto something when he introduced the discount, DIY (do-it-yourself) model to investing. It was revolutionary at the time.
Interesting to see that after founding the firm in 1971 and with a couple of stabs of having outsiders at the helm, Charles Schwab seems to be moving aside and empowering a new general to take the helm of the $26B financial services firm.
What’s interesting here is that new CEO Walter Bettinger II has been instrumental in refining Schwab’s
retail branch network and service centers. Having a leader with a focus on the retail customer is not by chance. After Schwab and other online brokers moved into full-services by providing banking, wealth management, and mortgage products, it seems that the aftermath of the popping of the debt bubble is leading to a renewed focus on retail.
This is a good thing for Schwab, its customers, and the industry in general.
