What the Schwab - TD Merger Means for Advisors

 

Recorded at the T3 Advisor Conference 2022.  Presented by:

Advisorpedia interviewed Andrew Salesky, Managing Director of Digital Advisor Solutions at Charles Schwab, at the T3 Advisor Conference in May, 2022.

Related: What’s Driving Innovation in the FinTech Space

Transcript:

"Yes, we're very excited about the integration activity that we're doing with Ameritrade and Schwab coming together. Now, it's hard to believe we're already 18 months since when we announced legal day one, and we're working on bringing the two firms together really a broker dealer consolidation, and we shared it when we had legal day one, it was gonna be 18 to 36 months to consolidation. Well, that's now coming on pretty quick second half of next year. . .

So when we're looking forward to integrating the firm and, and bringing together what will be 15,000 advisors working with Schwab.

And the way I think about integration, it's clear, there's a lot of work that we need to enable the broker dealer consolidation, but we're really investing in the platform in a distinctive way, the scale of the acquisitions, enabling us to spend it basically a 3x, rayed to what we were doing prior to the acquisition. So all of our roadmaps in the digital space are getting accelerated, whether that's related to digital onboarding, to move money, everything we're doing with third party integrations, everything's getting accelerated. And the benefits of that investment is actually starting to hit this year.

It's not like advisors have to wait clients wait till you know the conversion event, second half of next year. We're bringing on those capabilities throughout this year into next year. So a lot of great things are happening on the platform. I think particularly the conference here, we're at now T three, so much discussions around digital onboarding. So we are really enhancing our digital onboarding capability. So we've been investing in digital onboarding for years, it's our single largest area of investment. And what we're implementing by mid this year coming very shortly that we're going to enable multiple accounts to be opened in a single digital envelope with integrated funding with advisor documents. Again, all of that combined in a single digital envelope that an end client can authorize with one swipe on their mobile phone. So we truly have household ID our onboarding, addressed by mid this year. And when we're going to push that further, we've we've dressed the majority of the account types, but the big one that still needs to be addressed is managed accounts.

So by hopefully mid next year prior to the big conversion event will bring on Managed Accounts, we're also looking at pledged asset lines bringing that onto the platform. So a very robust digital onboarding solution that will leverage our captive e auth. Experience, which enables straight through processing. And we're already seeing Nyko benefits not in good order benefits going from 30% Plus to less than 4%. So that's a great benefit for us great benefit for clients. We're really excited about it. There's so many areas of the technology that I'm excited about. But in many cases it's it's sort of completing the journey on some of the digital enablement.

So even an area like move money, that's so critical, the client to advisors, their end clients, things like journals, wires, ACH transition transit transactions, you know, making those fully digital, and that area move money is our highest level of digital adoption, almost 80% of our transactions are already done digitally. We're really chasing that tail. We like to enable all transaction so edge cases like future dated wires, international wires, we want there to really be no excuse for an advisor to say I'm not moving money digitally. It's our safest channel. It's our most efficient channel. We really want to capitalize on the opportunity