Schwab's robo spikes suddenly to nearer $5 billion as 500 RIAs sign on
San Francisco giant also claims the assets, despite being managed for 'free,' produce better revenues than the self-directed accounts they are cannibalized from
The opposition of brokerage firms to embrace electronic means to advance excellence in advisory services is self defeating. Schwab has found it is in their enlightened best interest and that of its RIA user base to embrace innovation and the marketplace agrees. A good shopper asks what am I getting in return for the fees, commissions and administration cost I am incurring. The extraordinary range of investment and administrative values which are addressed and managed electronically in “robo advice” greatly exceed the capabilities of brokers at a far lower cost. The brokerage industry might want to reconsider the acknowledgement and support of advisory services and the professional standing of the broker, who is not allowed (by compliance protocol) to render advice. It is indisputable the brokerage lobby has denied the “retail investor” the same consumer protections accorded to all other investors.
Schwab is out executing the “retail” brokerage business, market share will follow..
Walt Bettinger axes current and former Schwab retail chiefs, Terri Kallsen and Andy Gill; funnels responsibilities to Jonathan Craig, for now
The Schwab CEO is 'restructuring,' which includes cutting the Chairman's Club program that sent 200 top performers to Hawaii on a free junket