Schwab Needs to Catch Up In Mobile Apps

SchwabLink

The successful SchwabLink service, established in 1991 to provide back-office custodial services for independent fee-based financial advisors, also needs to go mobile. Schwab should make all of the transaction, record-keeping and statement preparation services of the original SchwabLink available through a mobile interface.

More than a third of the 201 financial advisors who participated in the 2008 survey by the Aite Group stated that they spend at least 25% of their work time outside the office and only 14% stated that they conduct all of their business in the office. While 53% of advisors in the Aite survey carry advanced mobile devices such as smart phones, only 22% said they used their phones for advanced business tasks beyond email, contact management and scheduling - yet 62% said they would find it useful to access other mobile business applications.

This presents a clear opportunity for Schwab to help members of its financial advisors network to use mobile technology to more efficiently run their businesses and serve their clients. By leveraging its technology investments just as it did with the original SchwabLink, the company could provide a mobile tool for advisors that they would not likely be able to afford on their own, creating additional incentives for advisors to partner with Schwab. Current market conditions have increased the volume of client inquiries, and the ability to respond quickly and efficiently, whether at the office or not, is a competitive advantage that mobile technology can provide, according to recent research by Oracle (ORCL).

Whether serving consumers with its own mobile apps or supporting its network of independent financial advisors, Schwab needs a more comprehensive mobile solution to be a player in today's wireless world. The mobile phone offers the opportunity to engage customers with increased interactivity and respond to growing demand for convenience and round-the-clock access, where ever they may be, on whatever device they may use.

For this research project, Boston University graduate students were tasked with making recommendations for Schwab based on the following criteria: "Charles Schwab has succeeded by evolving continuously in its products and services to take advantage of changes in its environment and the basis of competition, such as the deregulation of brokerage fees in 1975, the changing investment needs of baby boomers in the 1990's, and the advent of the internet this past decade. Using the tools of innovation, such as introducing disruptive technologies first in specialized niches that most need them, and making whole products that address customer lifestyle changes, what strategies would you recommend for Charles Schwab to address the next 10 years?"

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