Charles Schwab dropped a plan for multicustodial platform for its portfolio management offering, PortfolioConnect, and announced it would increase its investment in building third-party integrations.
Third-party vendors will be highly incentivized to work with Schwab, as the Schwab Advisor Center has more market penetration than any other custodial platform, says Jackson Arnold, research associate at Corporate Insight.
“So long as Schwab does a good job listening to its advisors and actively works towards deep integration with the most sought-after tech solutions, we think that Schwab advisors will respond positively,” Arnold says.
Schwab is smart to focus on streamlining and third-party integration, he adds. “With so many tech offerings and strong niche products available, it’s impossible to meet the technology standards of your advisor workforce with proprietary technology alone.”