eTrade 2009 Annual Report Download - page 7

Balance Sheet Management
The balance sheet management segment consists of the management of our balance sheet, focusing on asset
allocation and managing credit, liquidity and interest rate risks. The balance sheet management segment manages
loans previously originated or purchased from third parties as well as our customer cash and deposits, which
originate in the trading and investing segment.
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 25.
Three years of segment financial performance and data can be found in the MD&A beginning on page 45 and in
Note 23—Segment and Geographic Information of Item 8. Financial Statements and Supplementary Data
beginning on page 163.
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 group.
We provide customer support through the following channels:
•Branches—we have 28 branches located in the U.S. where retail investors 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 increase our investments in these
critical platforms in 2009, helping to drive significant cost efficiencies as well as enhancing our service and
operational support capabilities. Our technology platform also enabled us to deliver long-term investing
functionality with the introduction of our Investing Resource Center and Online Advisor offerings.
COMPETITION
The online financial services market continues to evolve rapidly and we expect it to remain highly
competitive. Our trading and investing segment competes with full commission brokerage firms, discount
brokerage firms, online brokerage firms, Internet banks, traditional “brick & mortar” retail banks and thrifts and
market-making firms. Some of these competitors provide Internet trading and banking services, investment
advisor services, touchtone telephone and voice response banking services, electronic bill payment services and a
host of other financial products. Our balance sheet management segment, in addition to the competitors above,
competes with investment banking firms and other users of market liquidity in its quest for the least expensive
source of funding.
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