eTrade 2008 Annual Report Download - page 6

In addition to the services above, our retail segment includes employee stock option management software
and services which are provided to corporate customers. This software system facilitates the management of
employee option plans, employee stock purchase plans and restricted stock plans, including necessary accounting
and reporting functions. This business is a component of the retail segment since it serves as an introduction to
E*TRADE for many retail customers who conduct equity option transactions as employees of our corporate
customers, with our goal being that these individuals will also use our other products and services.
Institutional
The institutional segment includes the management of our balance sheet, focusing on asset allocation and
managing credit, liquidity and interest rate risks. The retail segment originates margin receivables and customer
deposits that are managed by the institutional segment.
Our institutional segment also includes market-making activities which match buyers and sellers of
securities from both the retail segment and unrelated third parties. As a market maker, we take positions in
securities and function as a wholesale trader by combining trading lots to match buyers and sellers of securities.
Trading gains and losses result from these activities. Our revenues are influenced by overall trading volumes, the
number of stocks for which we act as a market maker and the trading volumes and volatility of those specific
stocks.
For additional statistical information regarding products and customers, see Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) beginning on page 22.
Three years of segment financial performance and data can be found in the MD&A beginning on page 40 and in
Note 24—Segment and Geographic Information of Item 8. Financial Statements and Supplementary Data
beginning on page 149.
CUSTOMER SERVICE
We believe providing superior customer service is fundamental to our business. We strive to maintain a high
standard of customer service by staffing the customer support team with appropriately trained personnel who are
equipped to handle customer inquiries in a prompt yet thorough manner. Our customer service representatives
utilize our proprietary web-based platform to provide customers with answers to their inquiries. We also have
specialized customer service programs that are tailored to the needs of each customer segment.
We provide customer support through the following channels:
• Financial Centers—we have 29 Financial Centers located in the U.S. where retail customers can go to
service any of their needs while receiving face to face customer support.
• Online—we have an online service center where customers can request services on their accounts and
obtain answers to frequently asked questions. The online service center also provides customers with
the ability to send a secure message to one of our customer service representatives.
• Telephonic—we have a toll free number that connects customers to an automated phone system which
will help ensure that they are directed to the appropriate department for their inquiry. We have been
improving the expertise within our customer service team as the vast majority of our customer service
representatives now hold a Series 7 license.
TECHNOLOGY
We believe our focus on being a technological leader in the financial services industry enhances our
competitive position. This focus allows us to deploy a secure, scalable technology and back office platform that
promotes innovative product development and delivery. We continued to invest in these critical platforms in
2008 by delivering advanced mobile capabilities with our Mobile Pro for Blackberry®offering, and by making
3