Schwab Announces Patent Pending Data Analytics Algorithm

New approach to using data to improve client experience underscores Schwab’s rapid digital innovation

SAN FRANCISCO--(BUSINESS WIRE)--Charles Schwab has developed a patent-pending algorithm designed to improve client experience and make investing more accessible. The algorithm was developed by a team of data scientists within Schwab’s Digital Services organization, which is responsible for leading the firm’s work to explore, develop and rapidly deploy innovations in digital technology that help deliver modern, easy-to-use experiences for current and future clients.

Schwab’s proprietary algorithm analyzes billions of pieces of client data in order to detect clients’ intent and automatically adapt to client-led changes in behavior and Schwab-led changes in the user experience. This enables Schwab to understand what clients attempt to do online and identify opportunities to improve the client experience. The ability to detect the client's intent in real-time now gives Schwab the ability to build more efficient and seamless client experiences.

These client behavior insights can also be used in other channels to serve clients faster and more personally, such as seamlessly connecting a call-in client to the right representative based upon what they have recently been researching online, saving the client time on the phone. Schwab expects to use the new algorithm to make a range of client activities more efficient. For example, if a client attempts to conduct a wire transfer online but then calls the Schwab service line, they can be immediately directed to the team that can help with that type of transaction by phone. Additionally, the algorithm surfaces the web pages and searches that are driving highest call volumes, enabling Schwab to pinpoint client roadblocks and make those experiences easier and more intuitive.

The patent-pending algorithm was developed by Schwab’s Data Analytics & Insights team led by Tony Cyriac, the firm’s new Chief Data & Analytics Officer who joined the firm in June 2020. Cyriac’s team is responsible for leveraging data, analytics, and research to drive growth and improve the client experience across all business units at Schwab.

In discussing the development of the new algorithm, Cyriac says, “We are proud of the focus and progress we are making to put data to work to improve our clients’ experiences and anticipate their needs. In order to serve our clients holistically across business lines and channels, we must analyze their journey in the same manner in which they live it: they experience Schwab as a single entity regardless of whether they are trading, opening a brokerage account or resetting a pin on their debit card. Our goal is to meet clients where they are and help them accomplish what they need to do as quickly and seamlessly as possible.”

Schwab Recognized for Excellence in Analytics

In addition, The International Institute for Analytics (IIA), the leading independent analytics and data science research and advisory firm, has awarded Schwab with the 2020 Award for Excellence in Analytics (ANNY) for Schwab’s cross-channel analytics initiative, which leverages this patent-pending algorithm. The award evaluates impact of a range of analytics projects based on outcomes, ambition, scale, skills, and insights, recognizing firms that bring clarity and precision to critical business decision-making.

About Charles Schwab

At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

Disclosures:

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries and their 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; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.aboutschwab.com. Follow us on Twitter, Facebook, YouTube and LinkedIn.

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