Charles Schwab 2012 Annual Report Download - page 20

18 LETTER FROM THE CHIEF EXECUTIVE OFFICER
Our online and mobile channels continued to be a go-to
resource, primarily for our self-directed investors. Last year on
Schwab.com, we processed more than 296 million client log-ins
and ranked #1 in the Keynote Brokerage Performance Index for
most weeks in 2012, ending the year with a top index speed of
3.08 seconds to log in and place a stock order.
When clients need personalized assistance, many turn to our
toll-free phone lines. In 2012, Schwab answered 13.4 million
calls in an average time of 22 seconds, with an additional
10.2 million calls handled through automated channels. Our
knowledgeable phone reps also received a 9.8 out of 10.0
satisfaction score in an interactive voice response survey.
Of course, we also provide face-to-face assistance at more than
300 Schwab branches nationwide. Last year, our employees
hosted more than 600,000 in-person client meetings and
presented 56,500 personalized nancial and investing plans.
2. Rethinking Value
Every client deserves to know what they’re paying for and
what they will get in return. In an industry where few things are
certain beyond the fees an investor pays, we have dramatically
lowered the cost of investing.
We began 2012 with the launch of Schwab Index Advantage®
— a 401(k) plan offering that provides index mutual funds with
low operating expenses and delivers added value by including
a professional, independent advisory service. Later in the
year, we slashed the operating expense ratios for each of
the Schwab ETFs, offering the lowest OERs in their respective
Lipper categories.
But there’s more to value than just low fees. Delivering great
value means giving clients more than they expect. In our
Advisor Services segment, we conducted free Insight to Action
workshops on business development topics such as strategic
planning, and we continued to expand our Schwab Intelligent
Integration™ platform as a one-stop resource for customer
relationship management.
3. Rethinking Access
Every client deserves convenient access to the products,
services, and information needed to achieve their goals.
A number of launches in 2012 helped make investing easier
and more accessible. We continued to expand our lineup of
mobile apps for both smartphones and tablets, giving investors
and independent advisors convenient access to their Schwab
accounts. We also introduced new tools for options traders
and a cloud version of our StreetSmart Edge® platform for
active traders.
Through an agreement with Piper Jaffray, we expanded access
to new-issue municipal bonds via the Schwab BondSource®
platform. And our acquisition of ThomasPartners, Inc. will
expand client access to growth-oriented investment portfolios
designed to generate dividend streams — a convenient investing
alternative for those nearing or in retirement.
INTEGRITY MATTERS
Clients deserve to work with smart and caring people who have
their interests at heart. It’s not simply what we do that makes
Schwab different. It’s how we do it.
Many third-party awards have acknowledged Schwab’s client-
centric approach. Last year, The Charles Schwab Corporation
received the number-one ranking in the Securities industry
category in FORTUNE magazine’s 2012 list of the World’s Most
Admired Companies.1 Charles Schwab also was named “Highest
in Investor Satisfaction with Self-Directed Services” by J.D.
Power and Associates.2 Also in 2012, for the third straight
year, Schwab ranked number one in customer satisfaction in
an independent survey conducted by the American Customer
Satisfaction Index.
When it comes to service, value, convenience, and integrity, we
want every client to have such a great experience with Schwab
that they recommend us to family and friends. Schwab receives
an astonishing 40 percent of our new clients as a result of
referral from delighted clients.
RISING TO THE CHALLENGE
Our success at building the Schwab franchise in 2012 is clear.
And many of the strong headwinds that have impacted our
earnings the last few years also remain as we move into 2013.
Our nation and its political leaders remain split by competing
views about the role and size of government, the level and
manner of taxing its citizens, and the future means by which we
should meet nancial promises made to our citizens. Much of
Europe remains awash in red ink and faces an uncertain scal
future. Consumers, although resilient, continue their broad-
based deleveraging from the excesses of the last decade. And
maybe most challenging for Schwab, the Federal Reserve, in its
efforts to drive businesses and consumers to spend and invest,
remains committed to a set of ultra-low interest rates that
obscure market forces.
Serious headwinds? Yes. But at Schwab we keep moving
consistently forward, gathering billions of dollars in new
assets as we gain market share.
As we look to 2013 and beyond, we will continue to challenge
the traditional investing services model — to create a better way
to serve investors and their advisors and to earn their trust. Our
clients depend on us to champion their nancial goals. We will
speak up on their behalf, changing what needs to be changed,
and reinventing what no longer works. Schwab has never been
about the status quo and never will be.
Clients tell us what matters most to them. For example, we
plan to open select branches on Saturdays to better serve