eTrade 1999 Annual Report Download - page 11

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In an era in which consumers demand efficient, personalized and high-quality service, E*TRADE is focused on providing an
electronic self-service model complemented by a human touch. During fiscal 1999, the Company built on its commitment to offer a
two-track approach that empowers the customer with advanced tools to manage investment decisions, while still providing
personalized assistance from customer service associates. Customer service is provided through E*STATION, E*TRADE's 24-hour
electronic resource center and through live agents. The Company's customer service associates help customers that prefer to speak to
an agent, handle product and service inquiries and address all brokerage and technical questions. The Company's current policy
specifies that customer service associates have or obtain a securities broker's license. See "Risk Factors--Risk Associated with
Management of a Changing Business." Key service features and tools include the following:
. 24x7x366 Live Agent Customer Service--In August 1999, the Company expanded its offering to include 24x7x366 live agent
customer service, allowing customers to contact the Company for quality support when they need support, not only when the securities
markets are open.
. Customer Service Live Forums--These online townhall sessions allow hundreds of customers to be serviced simultaneously via
interactive sessions on our Web site. We host both general and topical sessions.
. The Learning Center--The Learning Center provides self-directed investors with information on all of E*TRADE's products and
services.
. The Tour--This online tour of E*TRADE's products and services allows customers to learn about the Company at their own pace in a
self-directed environment.
. The Knowledge Center--Launched in late fiscal 1999, the Knowledge Center provides self-directed investors with valuable general
investing information on subjects, such as stocks, bonds, options, mutual funds, and market centers.
. Ask E*TRADE--In late fiscal 1999, the Company launched Ask E*TRADE, allowing customers to more easily find answers to their
investing questions. Powered by the Ask Jeeves search engine technology, Ask E*TRADE is a powerful natural language tool that
allows users to simply input their question, in either complete sentences or key words. Ask E*TRADE then provides links to the
precise content in the Learning Center that provides the required information.
. Getting Started--The Company has also launched a Getting Started feature to provide new and potential customers with information
in three areas:
opening an account, funding an account, and making the first trade. Questions in these areas represent a significant percentage of
inquiries from customers who have had accounts less than 90 days.
12
. Proactive Service Notifications--Customers submitting a service request receive two important services: customized information
regarding the request, including specific identification of the type of request submitted, the specific timeline involved in responding to
the request, and an ID number for the customer's reference; and an e-mail sent to the customer once the service request is completed,
providing specific information. This service notification is intended to make customers understand and feel comfortable with their
electronic service experience, by keeping them informed throughout the process, and by providing assurance that their request will be
carried out accurately and in a timely manner.
Operations
Clearing
The Company implemented self-clearing operations for equities in July 1996 and self-clearing operations for options in April 1997.
Clearing operations include the confirmation, receipt, settlement, custody and delivery functions involved in securities transactions.
Performing its own clearing operations allows E*TRADE Securities to retain customer free credit balances and securities for use in
margin lending activities subject to Securities and Exchange Commission ("SEC") and NASD rules. In July 1996, the Company signed
a seven-year agreement with BETA Systems for the provision of computer services to support order entry, order routing, securities
processing, customer statement preparation, tax reporting, regulatory reporting, and other services necessary to manage a brokerage
clearing business.
Since the Company's conversion to self-clearing, customers' securities typically are held by the Company in nominee name on deposit
at one or more of the recognized securities industry depository trust companies, to facilitate ready transferability. The Company
collects dividends and interest on securities held in nominee name and makes the appropriate credits to customer accounts. The
2002. EDGAR Online, Inc.