m


1975- First Discount Brokerage Firm

Self Directed, Value Conscious Customers

First to have 24X7 Support

1982, generated revenues of 54 million

1983 acquired by Bank of America for $ 57 Million

1987, bought back by Schwab for $280 million

1987, Went public raising $ 450 million

`  
  
ë ¦eed for more consultants

ë Acquired US Trust, a full service investment firm

ë Cost of $2.7 billion

 Middle 2000, Market crash

 Sep 11, 2001, Attack on WTC

R R
ë Types of Investors

ë Self Directed Investors

ë Validators

ë Delegators
  

Schwabs

Private
Advisor
Client
¦etwork
Offering
  
Schwabs

Advisor
Private ¦etwork
Client
Offering
Equity
Rating
System
` 

  

ë Customer Centric
ë Efficient
ë Open to change/ Dynamic
ë Flexible

ë Seamless and Integrated

ë Ease of access and simplification
`
ë Failure to mitigate risk associated with Technology
change
ë Imitable competitive advantage
ë Possible migration issues with respect to frequent
Technology changes
 

 
    
Equalizer Telebroker StreetSmart e.Schwab CyberTrader
Ȉ 1985 Ȉ 1989 Ȉ 1993 Ȉ 1996, Internet Ȉ Acquired in
Ȉ Diskettes Ȉ Automated Ȉ Windows Broking for 2000
Ȉ Modem Based Voice Response based $39.99 Ȉ Direct access
Ȉ Purchase- $199 telephone Ȉ Quicken Ȉ Low cost broker
brokerage Integrated platform Ȉ Platform for
Ȉ Subscription
service Ȉ 200000 Users Ȉ $439 million active trade
Fees
Ȉ 10% trade savings market
Ȉ Transaction
discount Ȉ 2000, 13 million
Fees
accounts
Ô  
ë Consulting for customers at the lower end of their
spectrum to manage their portfolio.

ë Venture in Banking space and utilize existing IT

infrastructure to leverage financial services and
monetize the gains

ë Integrate Online Trading with

commercial banking
Ô  
ë Personalization of service based on customer
historical trading behavior as part of consulting

ë Venture into all allied services