E*TRADE is a financial services company that provides online brokerage and related products and services primarily to individual retail investors. Founded on the principle of innovation, we aim to enhance the financial independence of traders and investors through a powerful digital experience that includes tools and educational material, supported by professional guidance, to help individual investors and traders meet their near- and long-term investing goals. We provide these services to customers through our digital platforms and network of industry-licensed customer service representatives and Financial Consultants, over the phone and by email at two national branches and in-person at 30 regional branches across the United States. We operate federally chartered savings banks with the primary purpose of maximizing the value of deposits generated through our brokerage business.
Delivering a powerful digital offering to our customers is a core pillar of our business strategy. We believe our focus on being a digital leader in the financial services industry is a competitive advantage. Our hybrid service delivery model is available through the following award-winning digital platforms, which include both E*TRADE and OptionsHouse products:
Our leading-edge sites for customers and our primary channel to interact with prospects
- Access to a broad range of trading solutions
- Actionable ideas and information
- Research and knowledge for decision making
Powerful trading applications for smartphones, tablets and watches
- Award-winning mobile apps
- Platform to manage accounts on the move
- Stock and portfolio alerts
Active Trading Platform
Powerful software-based trading application
- Sophisticated trading tools
- Idea generation and analysis
- Advanced portfolio and market tracking
These digital platforms are complemented by our offline channels, which include our network of customer service representatives and financial consultants and our 24/7 customer service available via phone, email and online at our two national branches and in person through our 30 regional branches.
Our business strategy is centered on two key objectives: accelerating the growth of our core brokerage business to improve market share, and generating robust earnings growth and healthy returns on capital to deliver long-term value for our stockholders.
Accelerate Growth of Core Brokerage Business
- Enhance overall customer experience
We are focused on delivering cutting-edge trading solutions while improving our market position in investing products. Through these offerings, we aim to continue growing our customer base while deepening engagement with our existing customers.
- Capitalize on value of corporate services channel
We leverage our industry-leading position in corporate stock plan administration to improve client acquisition and engage with plan participants to bolster awareness of our full suite of offerings. Our corporate services channel is a strategically important driver of brokerage account and asset growth.
Generate Robust Earnings Growth and Healthy Returns on Capital
- Utilize balance sheet to enhance returns
We utilize our bank structure to effectively monetize brokerage relationships by investing stable, low-cost deposits primarily in agency mortgage-backed securities. Meanwhile, we continue to manage down the size and risk associated with our legacy loan portfolio.
- Put capital to work for shareholders
As we continue to deliver on our capital plan initiatives, we are focused on generating and effectively deploying excess capital for the benefit of our shareholders.
Products and Services
We offer a broad range of products and services to our customers. Our core brokerage business is organized into three product areas: Trading, Investing, and Corporate Services. Additionally, we offer banking and cash management capabilities, including FDIC-insured deposit accounts, which are fully integrated into customer brokerage accounts. Among other features, customers have access to debit cards with ATM fee refunds, online and mobile bill pay, mobile check deposits and Apple Pay.
Trading products deliver automated trade order placement and execution services. We offer our customers a full range of investment vehicles including U.S. equities, exchange-traded funds (ETFs), options, bonds, futures, American depositary receipts (ADRs), and non-proprietary mutual funds. Margin accounts are also available to qualified customers, enabling them to borrow against their securities. We provide margin solutions, including calculators and requirement lookup and analysis tools, helping customers strategize, plan, and execute margin trades efficiently and effectively.
The Company markets trading products and services to self-directed investors and active traders. Products and services are delivered through web, desktop, and mobile digital channels. Trading and investing tools are supported by guidance, including fixed income, options, and futures specialists available on-call for customers. Other tools and resources include independent research and analytics, live and on-demand education, and strategies, trading ideas, and screeners for major asset classes.
Investing products help investors build wealth and address their long-term investing needs. Products and services include individual retirement accounts (IRAs), including Roth IRAs, virtual advice through our Adaptive Portfolio product, managed investment portfolios, unified managed accounts, and separately managed accounts. Investors are provided a full breadth of digital tools through web and mobile channels to address their investing needs. These include resource centers, allocation tools, educational, and editorial content.
The Company also offers guidance through a team of licensed Financial Consultants and Chartered Retirement Planning CounselorsSM at our 30 regional branches across the country, and through our two national branches by phone and email. Customers can receive complimentary portfolio reviews and personalized investment recommendations.
The Corporate Services channel provides stock plan administration services for both public and private companies. Through its industry-leading platform, Equity Edge OnlineTM, the Company offers management of employee stock option plans, employee stock purchase plans, and restricted stock plans with fully-automated stock plan administration, as well as accounting, reporting, and scenario modeling tools. The integrated stock plan solutions include multi-currency settlement and delivery, disbursement in international countries, and streamlined tax calculation. Additionally, corporate clients are offered 10b5-1 plan design and implementation, and SEC filing assistance. The Company's digital platforms allow participants in corporate client stock plans to view and manage their holdings. Additionally, participants have access to educational tools, restricted stock sales support, and dedicated stock plan service representatives. The Corporate Services channel is an important driver of brokerage account and asset growth, serving as an introductory channel for the Company's core brokerage business, with approximately 1.5 million individual stock plan accounts across approximately 1,000 corporate clients that represent approximately 20% of S&P 500 companies.
Equity Edge OnlineTM recordkeeping and reporting was rated #1 in Loyalty and Overall Satisfaction for the fifth year in a row by Group Five, an independent consulting and research firm, in its 2016 Stock Plan Administration Study Industry Report.
Sales and Customer Service
We believe providing superior sales and customer service is fundamental to our business. We strive to maintain a high standard of customer service by staffing the customer support team with appropriately trained personnel who are equipped to handle customer inquiries in a prompt and thorough manner. Our customer service representatives utilize our proprietary web-based platform that enables our team to reduce the number of touch-points required to answer customer inquiries. We also have specialized customer service programs that are tailored to the needs of each core customer group. We provide sales and customer support through the following channels of our registered broker-dealer and investment advisory subsidiaries:
Our Online Service Center serves as a portal where customers can request services on their accounts and obtain answers to frequently asked questions. The online service center also provides customers with the ability to send a secure message and/or engage in live chat with one of our customer service representatives. In addition, we offer our Investor Education Center, providing customers with access to a variety of live and on-demand educational content and courses.
We have a toll free number that connects customers to the appropriate department where a financial consultant or customer service representative can assist with the customer's inquiry.
We have 30 branches located across the U.S. where retail investors can get face-to-face support and guidance. Financial consultants are available on-site to help customers assess their current asset allocation and develop plans to help them achieve their investment goals. Customers can also contact our financial consultants via phone or e-mail if they cannot visit the branches.
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