Schwab reviews client loan options.Think Advisor

What you need to know

  • About 2% of Advisor Services customers seek financing from Schwab.
  • Offering loans keeps these customers from looking elsewhere and they may take their assets home with them.
  • In the near future, Schwab will offer loans exclusively through partners, but more loans are planned in the long term.

Conversion of platform from Charles Schwab to TD Ameritrade held Wednesday Schwab Impact Conferencebut the company also revealed that it is looking to offer its own loan options to its clients.

According to Barney Clarke, managing director and head of advisory services at Charles Schwab, “We’ve been talking about lending and, honestly, the liability side of our balance sheet for quite some time.

“This is one of the hardest things to do when you have a client need and you have to go find a solution with a competitor, perhaps someone trying to bring wealth management into their shop,” he said. explained. .

As such, “we want to build on that capability and we’ve made some great progress at the bank, but there’s still a lot of work to do,” he said.

Schwab has found success on the mortgage side through its partnership with Rocket Mortgage, he said.

“But we need something more sophisticated for many of you,” he admitted. [Rocket] thank you for using. But so that you don’t have to go out to Goldman or Morgan Stanley as a borrower, you need to get the more sophisticated ones available on the market…and we promise you that. ”

Rick Wurster, president of Charles Schwab, echoed his point. It also “removes the need to introduce another relationship into the relationship with the client.”

“There are a few things we’re focused on,” Wurster said, without elaborating.

“In the short term, over the next year or two, our focus is on making existing products easier to consume,” Wurster said. “So whether it’s a guaranteed asset line or a mortgage, we want to make it easier through our relationship model,” he explained. and we hope it adds value to you and your clients.”

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