Charles Schwab is looking to cater to its highest-earning clients with the introduction of two differentiated customer experiences that include a slate of additional services.
Effective yesterday, the firm automatically enrolled all retail clients with more than $1 million in assets at Schwab into what they're calling "Schwab Private Client Services." Meanwhile, clients with more than $10 million were enrolled into "Schwab Private Wealth Services."
According to Schwab, both programs consist of a complimentary suite of benefits providing dedicated and specialized service, pricing advantages and other rewards to meet the specific needs of the ultrarich.
Jonathan Craig, managing director and head of investor services at Charles Schwab, said the change is part of a company effort to deliver "meaningful differentiation for the growing number of wealthy clients we serve."
The company says investors who meet this criteria are now among the fastest-growing client segments at Schwab, representing more than two-thirds of the firm's total retail client assets. Clients with more than $1 million at are growing at a rate of more than 10% annually over the last five years, and clients with more than $10 million at the firm are growing at a rate of nearly 20% annually over the last five years.
Schwab reported a total of 34.3 million active brokerage accounts, 2.4 million corporate retirement plan participants, 1.8 million banking accounts and $7.65 trillion in client assets as of May 31.
"While we have been providing some of these benefits to clients for some time, we're excited to introduce new benefits and package them all together into a premier experience, and we will continue to build on it with additional benefits and capabilities in the future," Craig said.
As part of these new programs, all high net worth and ultrahigh net worth clients have access to a dedicated Schwab consultant who is responsible for their overall relationship with the firm, at no additional cost to the client.
This consultant can help clients manage their financial life, choose the right level of advice or services, create a personalized financial plan and connect them to a range of Schwab's wealth management specialists.
Clients enrolled in Schwab Private Client Services and Schwab Private Wealth Services also receive the following:
- Priority assistance and specialized service from Schwab's support teams.
- Pricing benefits across Schwab's bank and broker-dealer solutions, including discounts on mortgage rates that are aligned with qualifying assets held at Schwab and Schwab Bank, and unlimited free domestic wire transfers through in brokerage accounts.
- Expanded borrowing choices with a Schwab Bank pledged asset line
- Access to wealth management specialists on topics including tax, trust and estate planning, equity compensation, retirement planning, trading and education and family support.
- Curated insights on investing and planning topics from Schwab experts.
- Access to events including investing and market outlooks and other exclusive experiences.
Additional perks for Schwab Private Wealth Services clients include access to a senior banker from Charles Schwab Premier Bank to consult on banking needs and help design personalized borrowing strategies.
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"These branded experiences underscore Schwab's ability to meet the specific needs of our wealthier clients, but we are equally committed to ensuring that every client at Schwab receives a great experience, from those just getting started to those building wealth," Craig said. "We are proud to offer a range of services and capabilities for investors at every stage of their investing journey with a focus on delivering low costs and great value, products and experiences that make investing easy and accessible, and exceptional client service."
Monday's announcement came with a reminder that the bank earned the highest ranking in overall investor satisfaction among full-service wealth management firms in the
Now in its 21st year, the J.D. Power study measures overall investor satisfaction with full-service investment firms using seven factors: trust; people; products and services; value for fees; "ability to manage wealth how and when I want"; problem resolution; and digital channels.
It was conducted from October 2022 through January 2023 and was based on responses from 6,168 investors who work directly with a dedicated financial advisor or team of advisors. Charles Schwab, UBS, Fidelity and Lincoln Financial Group received the best scores on the firm's satisfaction index, while customers hit Prudential, PNC Bank and LPL Financial with the lowest marks.
