New Schwab Study Finds Next Generation Financial Professionals Drawn to
Relationship Management Roles and Want to Create Careers on Their Own
SAN FRANCISCO -- (Business Wire)
Charles Schwab and Texas Tech University celebrated the opening last
week of thenewly renovated Charles
Schwab Personal Financial Planning Technology Complex1 at
a ribbon cutting event attended by university faculty, students and
financial professionals currently studying at Texas Tech for CE credits.
Over the past several years, Schwab has contributed millions of dollars
in support to universities and has developed programs to help mentor,
train and provide hands-on learning experiences for future financial
Schwab's Bernie Clark addresses the crowd at ribbon cutting event at Texas Tech. (Photo: Business Wire)
Schwab Personal Financial Planning Technology Complex at Texas Tech,
originally constructed in 2009, is used today by more than 300
undergraduate and graduate students in the University’s Personal
Financial Planning Department. It is an approximately 4,500 square foot
facility that now includes two state-of-the art classrooms, a 16-unit
technology lab, a high-tech conference room, and a recording room to
produce high-quality distance education modules.
“Attracting young people to the RIA space is critical to the channel’s
success going forward,” said Bernie
Clark, head of Schwab Advisor Services. “We are honored to be
working with Texas Tech and other universities to provide support for
young people entering the business so that they can be strong champions
for the independent advice model in the decades to come.”
In early February, Schwab conducted a study with students at Texas Tech
to gain their perspective on the financial services industry.
Schwab Study Findings: Attracting and Retaining the Next Generation
Today’s developing financial advisors are gravitating to a career where
they can interact daily with people and have a role in relationship
management (69%), as well as do work that matters and help others
achieve their goals (63%), according to a recent survey conducted by
Schwab Advisor Services among more than 100 students studying Personal
Financial Planning at Texas Tech University.
Additional study findings include:
When it comes to working in financial services, 92 percent of students
consider strong communication and relationship-building skills as
‘very important’ followed by the ability to understand challenges and
apply tailored solutions (89%).
Understanding financial markets and complex data is still considered
‘very important’ by most students (60%) versus 40 percent who see it
as only ‘moderately important’.
The majority (73%) value independence in their career, however, they
do see themselves thriving when theyaregiven specific
objectives to achieve (43%) and half indicate that they would value a
strong training program.
Financial remuneration is seen as important, but less than five
percent of students consider it a number one condition.
The number of students spending the most time actively staying in
touch with people offline (40%) is almost double that of those
relying on online platforms (23%).
“While they don’t want to go it alone, these young professionals are
clearly seeking the opportunity to put their own stamp on their careers
– a path clearly offered in the independent model,” Clark noted. “As the
industry looks ahead to how it will meet the needs of a new generation
of clients, we believe it is critical to cultivate the aspirations of
the next generation of professionals and to help them become
highly-skilled future business leaders.”
For detailed results, see the attached slide presentation.
Schwab’s Commitment to the Next Generation
In addition to Schwab’s efforts with Texas Tech University, the company
is committed to developing the next generation of financial
professionals and RIA leaders.
Schwab is currently accepting
candidate applications from junior year students for a ten-week
intern program launching this summer. The program will rotate
participants through several disciplines, providing them with hands-on
practical knowledge of the industry, alongside corporate work
Last month, Schwab joined the groundbreaking on the new Paul Merage
School of Business building at the University of California, Irvine
which will feature Schwab’s new Trading and Technology Lab. The Lab
will provide a tutorial environment, complete with demo data, so that
students can receive hands-on experience as well as learn about a wide
range of advisor activities from business development and client
service to investment management and back office operations.
For the past several years, Schwab has invited students to its IMPACT®
Conference, the industry’s largest event serving RIAs. In 2012,
Schwab hosted 50 students from seven schools who attended and
participated in activities and sessions providing them with direct
exposure to the RIA industry.
“With each of these initiatives and more, Schwab is focusing on making
sure RIAs capitalize on the enormous opportunities ahead of them and
that we create a direct connection between the next generation of
advisors and the RIA firms of today,” said Clark. “Our goal is to help
fuel RIA growth for generations to come and to ensure that the
independent model remains a destination for students, advisors and
individual investors alike.”
About the survey
Schwab Advisor Services conducted the survey during the month of
February 2013 in conjunction with Texas Tech University. The
questionnaire was completed online by 103 students currently enrolled in
the Personal Financial Planning Program at the university. The
respondents included Undergraduates (36%), Masters (35%), PhD (24%) and
Advanced Bachelors to Masters (5%).
About Charles Schwab
The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of
financial services, with more than 300 offices and 8.8 million active
brokerage accounts, 1.6 million corporate retirement plan participants,
874,000 banking accounts, and $2.01 trillion in client assets as of
January 31, 2013. The Company was ranked ‘Highest in Investor
Satisfaction With Self-Directed Services’ in the 2012 US Self-Directed
Investor Satisfaction StudySM from J.D Power and Associates.
Through its operating subsidiaries, the Company provides a full range of
securities brokerage, banking, money management and financial advisory
services to individual investors and independent investment advisors.
Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,
and affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation
plan services; compliance and trade monitoring solutions; referrals to
independent fee-based investment advisors; and custodial, operational
and trading support for independent, fee-based investment advisors
through Schwab Advisor Services. Its banking subsidiary, Charles Schwab
Bank (member FDIC and an Equal Housing Lender), provides banking and
lending services and products. More information is available at www.schwab.com
Follow us on Twitter: @Schwab4RIAs
Read our corporate blog: SchwabTalk
1 The remodeling of the complex is made possible by funds
from Charles Schwab Foundation and a donation of portfolio management
software and packaged technology solutions including best practices
workflows each by Schwab Performance Technologies® and Schwab
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130306005338/en/
Anita Fox, 415-667-1308
Sarah Gormley, 718-875-2122
Source: The Charles Schwab Corporation
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