If you have $1 million parked at Schwab, you get a "dedicated relationship." A real person who knows your goals and your portfolio.
If you don't, you get the app.
CEO Rick Wurster says AI is about to close that gap.
In an interview with David Rubenstein for Bloomberg Wealth, Wurster said the vast majority of Schwab clients fall below the $1 million minimum for a dedicated advisor.
His plan: use AI to give those customers some of the same personalized insights that branch advisors and dedicated reps give every day.
Earlier this month, Schwab rolled out a generative-AI tool. It pulls together a client's portfolio performance, news on their holdings, and Schwab analyst commentary all in one place.
Think of it like a financial coach who never sleeps.
That matters because Schwab is huge. The Westlake, Texas-based firm oversees almost $12 trillion in client assets and more than 39 million active brokerage accounts as of March.
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Schwab was built to democratize investing. After the SEC ended fixed commissions in 1975, the firm went after retail customers with cheaper trades and easier access.
Then Robinhood and others showed up with free trades, and the whole industry shifted again.
Wurster is now framing AI the same way Schwab once framed cheap commissions. Wall Street-style service shouldn't carry a price tag of $1 million.
He also said he would "love" to serve the US in a government role, but only after retiring from Schwab.
The wealth-management industry has spent the last year worrying that AI will eat its lunch.
Wurster's bet is the opposite: AI scales up what advisors already do instead of replacing them.
The next test is how the new AI tool actually performs.
The catch: personalized investing advice is hard, and generic insights aren't.
Wurster is betting that AI fills that gap for 39 million accounts.
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