The strategy: Schwab is making a decisive move to serve ultra-high-net-worth (UHNW) clients, those with at least $30 million to invest, per Investopedia. To accomplish this in a segment traditionally dominated by larger competitors, the firm plans to:

• Open 16 new branches in high-income communities like Monarch Beach, Palm Beach Gardens, and Aventura, per RIABIZ
• Expand or relocate 25 existing branches
• Hire over 400 new branch staff, including financial and wealth consultants, specifically suited to serve the wealth management needs of high-net-worth (at least $1 million to invest) and UHNW clients

The rationale: Charles Schwab sees its ability to build relationships in-person as a must in the wealth management arena. 

By expanding its in-person reach and adding sophisticated services like discretionary asset management, Schwab is closing the gap with major competitors like JPMorgan, which has also been building out its high-end branches for mass-affluent customers (between $100,000 and $1 million to invest).

Our take: Charles Schwab is covering its competitive bases by leveraging its existing robust digital platform with a newly enhanced network of high-end, strategically placed branches. With 43 million accounts across its brokerage and banking divisions, this strategy is designed to poach assets from competitors and seamlessly graduate non-UHNW clients into higher-end, enhanced service accounts. 

However, Schwab must successfully recruit hundreds of elite wealth consultants to deliver the bespoke, white-glove service  that the ultra-rich expect. And it must simultaneously convince the UHNW market that its brand matches the prestige of established private banks. Ultimately, this significant investment is a high-stakes attempt to complete the transformation to a dominant, full-service wealth management firm.