Schwab Seeks to Win Retail Investors by Expanding Branch Network

Charles Schwab SCHW is doubling down on its physical presence at a time when the majority of the wealth management industry is focusing more on digital-first solutions. The Westlake, TX-based brokerage giant has announced plans to open 16 new branches, expand or relocate 25 existing ones, and hire above 400 branch-related roles across the United States.

The move highlights Schwab’s belief that in-person relationships are critical even though more clients have started to manage accounts online. The company says that branches are a key growth engine that help convert client relationships into deeper engagement and asset growth.

In the first half of this year, Schwab added 2.3 million new brokerage accounts and $218 billion in core net new client assets — momentum it intends to sustain with its expanded network.

Importance of Physical Branches for SCHW

Schwab operates nearly 400 branches today, which is its competitive differentiator. While the firm has invested heavily in digital tools like expanding 24-hour trading for retail clients, its leadership maintains that face-to-face guidance builds trust and drives long-term loyalty. According to Jeannie Bidner, head of Schwab’s branch network, thousands of clients visit branches every day, often seeking personalized advice for major financial decisions.

The hybrid strategy that Schwab is following — balancing digital access with human interaction — aligns with broader industry trends. Several competitors are also opening or redesigning locations to attract high-net-worth clients.

Areas Where Schwab Is Expanding

SCHW’s expansion is focused on markets with rising wealth and population growth. Five new branches are slated for Florida in cities like Palm Beach Gardens and Marco Island. California will likely see three new openings, including in Manhattan Beach and San Francisco’s Mission Bay, along with six relocations or expansions. Texas, Schwab’s home state, will get two new offices in the Austin area, including one in Bee Cave.

These regions have seen a surge in affluent households because of business relocations, favorable tax environments and demographic shifts. By placing branches in these spots, Schwab aims to attract new clients and deepen relationships with the existing ones.

Beyond Branches, SCHW Is Hiring for Growth

The branch build-out will be matched by hiring more than 400 financial and wealth consultants to serve Schwab’s growing base of high-net-worth and ultra-high-net-worth clients. The company is also recruiting across its corporate offices for roles in wealth management, client service, digital innovation and AI development, underscoring its commitment to scaling both human and technological infrastructure.

Schwab’s decision to expand its physical footprint is a sign of confidence in the staying power of the advisor-client relationship. As the number of physical branches increases, investors get more opportunities to access guidance in person.

Moreover, branches will give Schwab a way to engage with clients during important financial moments like retirement planning, inheritances and business sales, areas wherein digital tools alone may fall short. These conversations tend to lead to higher client satisfaction and will likely result in clients consolidating more of their assets with Schwab.

Schwab’s Price Performance & Zacks Rank

So far this year, SCHW shares have gained 24.4% compared with the industry’s 27% growth.

Currently, Schwab carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Branch Expansion Efforts by Other Finance Firms

In line with Schwab’s strategy, firms like JPMorgan JPM and Bank of America BAC are actively expanding their branch networks to serve high-net-worth clients in growth markets. The push for expansion is largely driven by the need to build relationships, gather deposits and offer specialized services to affluent clients, even as digital banking adoption accelerates.

JPMorgan has opened 1,000 branches since 2018 and plans to continue expanding, particularly in retail and affluent markets.

Bank of America announced that it will open more than 150 financial centers across 60 markets by 2027, with substantial investments in both new and renovated centers to meet client demand for in-person services.

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This article originally published on Zacks Investment Research (zacks.com).

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