The Charles Schwab Brand is built on Purpose and Innovation for Individual Investors

April 19, 2013 — Leave a comment

For four decades, The Charles Schwab Brand has been innovating and advocating for individual investors and the independent advisors who serve them. Charles Schwab created his company because he believed that investors deserved better. Schwab knew investing could be different. He defined better as lower prices, better access and better service.


Charles Schwab developed a number of innovations that have helped investors. By turning his back on stodgy Wall Street conventions, he blazed his own trail and sparked an investing revolution. At a time when most brokers were battling for large institutional clients, Schwab focused his attention on the individual investor. Schwab was the first self-serve broker. They pioneered discount brokerage, led the way with online investing, and created an innovative way to invest in a variety of no-load no-transaction-fee mutual funds.

In 1971, Schwab opened the first office of Charles Schwab & Co in San Francisco. Initially, the company was just one of many struggling young firms in the securities business. Then in 1975, the Securities and Exchange Commission discarded the old fixed-rate system for buying and selling securities in favor of negotiated rates. Under the new system, brokers could charge whatever they wanted. Schwab noticed that most brokerages were lowering rates for large institutional clients while raising rates for individual investors.

Schwab saw his chance and vigorously targeted the small-investor market, offering no-frills service and deep commission discounts that were as much as 50 percent below that of his competition. To afford such discounts and still make money, Schwab did away with the traditional service of offering research, put his staff on salary, and automated order processing via computer (one of the first brokerages to do so).

The company and brand have grown and evolved over the years but one thing has remained consistent, their focus on meeting the needs of the individual investor. The brand has kept things simple by building their strategy around the Golden Rule. They have a fundamental belief that if you treat clients as you would like to be treated, clients will bring in more business and refer their friends and family members.To quote Charles Schwab, “Only when we listen to our clients and try to see the world through their eyes, can we help them achieve their financial goals”.

Charles Schwab is a brand and company this is guided by purpose and values in order to earn the trust of their customers. The Brand’s Purpose is “To champion every client’s goals with passion and integrity”. The brand’s core values are listed below:

  • Serve our clients in an ethical, empathetic and proactive way.
  • Innovate constantly to improve the client experience.
  • Respect fellow employees and reinforce the power of teamwork.
  • Be good stewards of the resources entrusted to us – client assets, our brand, and stockholder value.

A focus on the individual investor, a customer focused purpose and core values that build trust has been a successful formula for the Charles Schwab Brand for over 40 years.

Are you a Charles Schwab customer?


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